Strategic partnerships - carefully structured long-term alliances

Strategic partnerships are essentially longer-term versions of revenue pull-through. For them to be successful, it is essential that both parties invest time and money, and that there is a strong sense of loyalty.

Dent says: "The best alliances are those focused on specific markets or opportunities. The relationship is built on predictability of the outcome, on clarity of roles and communication, and on consistency. Above all, the relationship has to give each side a profit."

Strategic alliances will tend to involve joint marketing at conferences and exhibitions, and a willingness by both sides to invest in training staff to master each other's offer or products. Dent added: "To me, a hallmark of a true strategic alliance is where one party will not switch their partner out of a sale, even if to do so would win them the deal. Partners are prepared to lose together as well as win together. ."

Partnering programmes

Suppliers can only manage a few strategic alliances, but they need to work promiscuously with many partners and influencers.

Here the challenge is to manage a meaningful relationship with little or no direct face-to-face contact. Delegates said that one of their main frustrations was actually how to identify the influencers in the first place.

Our Analysis:

1) Sell-through. If you are struggling to find an alternative to straightforward commission selling, then you are not alone. Fulfillment fees and the agency models may be appropriate to particular market niches, but they have yet to reach the mass market. Differential compensation remains fraught with problems.

2) Sell-with. Most of the delegates at the conference were happy to admit that they had more questions than answers here. There are some good examples of strategic alliances which work, but delegates are still getting to grips with how to work with many small partners and influencers without a cash nexus!