The value of partnerships

IF YOU sell your product or services B2C (business to consumer) or B2B (business to business) don’t stop reading.. Have you ever thought about B2B2C (business to business to consumer) or B2B2B (business to business to business)? Let’s discuss the value of marketing partnerships.

Strategic marketing partnerships can be an effective way to create extra revenue streams for your business. You do what you do best and partner up with businesses with complimentary strenghts to 1) your product or service, 2) to your marketing or 3) to your sales landscape.

Let’s start with two simple examples of partnerships.

Example 1: I’m selling footballs and I partner up with a tech / data company who adds chips to my balls so they become smart. My partner also provides an app and a data dashboard (if more than 10 balls in 1 account). The customer can now track the speed and the force of the ball(s) plus analyse data for better performance. My tech/data partner and I use the rich “big” data to learn from and create better and new products and services.

Example 2: I’m selling my footballs to football clubs and academies with a small sales team (B2B). I’m going to reach out to sports brands and sports retail stores who would like to sell my balls directly to consumers (B2B2C). I sell either my own brand or brands can buy ‘clean balls’ and put their own brand on it. Some of the sports brands are interested to sell both to consumers and to amateur football clubs througout the country (B2B2B).

Other sorts of value adding partnerships

1. Co-marketing partnerships Collaborate with other businesses to jointly market your products or services. This can include cross-promotions, co-branded marketing campaigns, or joint advertising efforts.
2. Affiliate programs Create an affiliate program that allows other businesses or individuals to earn a commission for promoting and selling your products or services.
3. Licensing agreements License your intellectual property, such as patents, trademarks, or copyrights, to other businesses in exchange for royalties.
4. Content partnerships Collaborate with content creators, such as bloggers, influencers, or media outlets, to produce and distribute content that promotes your products or services.
5. Subscription bundling Bundle your products or services with complementary offerings from other businesses and offer them as a package deal. This can add value for customers and increase revenue.
6. Joint ventures Form a separate business entity with another company to pursue a specific project or venture. Profits and losses are shared, creating a new revenue stream.
7. Franchising If applicable to your business model, consider franchising your brand and business concept, allowing others to operate under your brand in exchange for franchise fees and ongoing royalties.
8. Educational partnerships Partner with educational institutions to offer courses, workshops, or training related to your industry. This can generate revenue through tuition fees or course sales.
9. Membership or loyalty programs Partner with other businesses to create joint membership or loyalty programs, where customers can earn rewards or discounts across multiple companies.
   
   This list (1-9) has been created by ChatGTP on date 20-10-2023 with the prompt: “What kind of strategic partnerships can create extra revenue streams.” For this article I have deleted a few options.

Partnerships add a whole lot of value. But be aware. They need their own marketing strategy and approach.

It really pays off to research if there are any interesting partnership models for you out there. The answer is most likely: yes.

Be aware that your partners need care and attention. You need:

• A partnership strategy and roadmap
• A good and fair setup of your partnership model
• The right messaging to convey partners
• Nurture them when they bite, because you want them to be your partner for the long run
• Depending on the size of your partnership model, you might even need a specialized partnership marketing department.

I hope I inspired you with this article!
In my next article I’ll explain more about partnership marketing.