Category: Glossary

What is Channel Sales? Channel sales is a distribution model where a company sells its products or services through third-party partners, rather than (or in addition to) selling directly to customers. These partners form the company’s “sales channel.” Key players in channel sales include: Resellers 🏪 Distributors 🚚 Affiliates 🤝 Value-Added Resellers (VARs) 🔧 System…

What is Email Marketing? Email marketing is a digital marketing strategy that involves sending emails to a group of people to promote products, share news, or build relationships. It’s like having a direct line to your customers’ (or potential customers’) inboxes. Key components of email marketing include: Building an email list 📋 Creating engaging content…

What is a Conversion? A conversion happens when a visitor to your website or app takes a desired action. This could be: Making a purchase 🛒 Signing up for a newsletter ✉️ Downloading an e-book 📚 Filling out a contact form 📝 Creating an account 👤 Basically, any action that moves a potential customer closer…

What is R&D? R&D stands for Research and Development. It’s the process of creating new products, improving existing ones, or discovering new knowledge that can lead to future innovations. Think of it as the corporate crystal ball – trying to predict and shape the future of the company and sometimes even the whole industry. R&D…

What is S&M? S&M stands for Sales and Marketing. It’s the combination of activities a company undertakes to promote its products or services and convert interested parties into paying customers. Think of it as the company’s megaphone (marketing) and handshake (sales) rolled into one. S&M typically includes: Marketing: Brand management, advertising, PR, market research Sales:…

What is G&A? G&A stands for General and Administrative expenses. These are the costs a company incurs to keep its daily operations running smoothly, regardless of its production or sales volume. Think of it as the oil that keeps the business machine humming along. Common G&A expenses include: Executive salaries Rent and utilities Legal and…

Bad Debt Bad debt is money owed to a company that is unlikely to be paid. It’s like lending your umbrella to a friend on a rainy day and never seeing it again. 🌧️☂️ Types of bad debt: Write-off: When you give up on collecting the debt entirely. Doubtful accounts: When you’re not sure if…

CAGR stands for Compound Annual Growth Rate. It’s a measure that tells you the rate at which an investment would have grown if it grew at a steady rate every year over a specific period. It’s like a financial smoothie blender, turning chunky growth into a silky performance metric. Here’s the formula (don’t worry, we’ll…

Ever wonder how companies account for things you can’t touch, like patents or copyrights? Or how they spread out the cost of a loan over time? That’s where amortization comes in! It’s like depreciation‘s cousin who deals with the invisible stuff. Let’s dive into this fascinating (yes, really!) accounting concept. 📉🧠 Amortization has two main…

Depreciation is the method of allocating the cost of a tangible asset over its useful life. In simpler terms, it’s a way to spread out the cost of an expensive item over the time it’s expected to be useful, rather than taking the hit all at once. Here’s what depreciation typically applies to: Buildings Machinery…