Strategic partnerships are one of the best ways to generate long-term revenue opportunities for your business. This aspect of business development allows you to strengthen your business through the network you develop. In this blog post, you will learn more about strategic partnerships and the benefits you will gain from them.
What are strategic partnerships?
Strategic partnerships are collaborations between businesses that complement each other. They’re typically not direct competitors and can serve similar target audiences. Through strategic partnerships, companies can work together to step up their market presence and generate new revenue.
Here are some examples of potential B2B partnerships:
Graphic design agency and copywriting agency
Tax accounting firm and staffing agency
Commercial cleaning company and freelance electrician
These businesses don’t step on each other’s toes or compete for market space. However, they do provide value in very specific ways for their clients.
How do strategic partnerships help you grow your business?
Now that you know a little more about strategic partners, is it worth the effort to build a network? Below are the benefits you receive from an active strategic partnerships program:
More revenue opportunities: Tag teaming with other companies in different industries gives you the chance to get in front of new customers. You’re able to get introductions to different networking events, tradeshows, and more.
Strategic partnerships give you the chance to reduce customer acquisition costs. This is due to referrals you can receive from your partners without having to spend more money on ads.
Stronger brand value: More people will hold your brand in higher regard. Why? Because brands they already know and trust are vouching for you. The trust levels are higher than they were before you began your partnership.
Greater value for current customers: Your customers will receive even more value because of the benefits you’re receiving through your partnerships. It’s not uncommon for discounts/deals to be set up between partners. Or even more service options because your network is that much stronger.
Why not make more money and strengthen your brand through strategic partnerships? They’re worth the effort.
How to get your first strategic partnership
Getting your strategic partnership isn’t as intimidating as you might think it is. Here are clear steps to finding and creating your first strategic partnership:
Identify your partnership goal: What do you want out of your new partnership? Do you want more referrals? Lower shipping costs? More product offerings to add to your current products? Clarify your partnership goals and what you truly want. Keep in mind that you can create different partnerships for different goals.
Brainstorm potential partners who will help you achieve your partnership goal: Now that you have clear goals in mind, identify complementary partners who can help you accomplish your goals. It’ll take some time to do the research but the payoff is worth it.
Create a compelling offer: What’s something you can offer in exchange for a partner helping you achieve your goals? One offer you can provide partners who send you closed business is rev share or a percentage of new revenue. For partners who are a part of your tech stack at a discounted rate, you can provide them with new leads.
Pitch potential partners: Share your unique offer with the potential partners you’ve identified. Ask questions to discover more about what they’re looking for then share how your offering helps
Sign potential partners: After a potential partner expresses interest and wants to team up, have them sign on as potential partners. Make it official!
Onboard new partners: Once they’ve signed, add them to your roster of partners. Notify all stakeholders internally so they can bring your new partner smoothly.
Support new partners: You can’t expect referrals to just pour in. Partners will need support. You can do this through training and providing marketing resources. You’ll also need to check in with them regularly.
Strategic partnerships are one of the best revenue opportunities you can invest in for your business. You customer acquisition costs are lower. You’re also able to create a more stable source of revenue. It’s important to play the long game. Remember that you’re investing in relationships with real human beings!