Product Partnerships: The Making of a Partnership
Good partnerships arise because they create short cuts for both companies to achieve their goals. It’s close to the classic “win-win”, except that product partnerships need a third win for the customers.
FREE CONSULTATIONKey Steps for Better Partnership
It will definitely improve your results
Look for people with complimentary skills and experiences
Inventors and engineers need business people, and creative types need a logical perspective to balance their dreams.
Consider relocating to a more startup-friendly environment
It’s easier to move before you have big local investments and people dependencies. Now is the time to set priorities on lifestyle and act on them.
Expand your scope beyond friends and family. Make new relationship.
It’s always valuable to build relationships with other startup founders, as well as startup advisors and investors.
Invest in building trust, alignment, and empathy with your partner, and you’ll reap the rewards.
Partnerships are good
Partnerships have long been used in just about every industry and so they are certainly not a new thing. The best partnerships offer a number of benefits for each party:
Access to an audience
The first big opportunity is that it allows both companies to talk to each other’s audiences. Product partnerships only usually fit when the products are complimentary. This means that access to this new audience is usually highly qualified.
Added value
When two products enter a partnership, it usually means that the customer will be gaining added value. For example, if you bundle two products or significantly reduce the price of buying both products because it is sold as a package, the customer will obviously gain value because of the lower cost. There is also the opportunity that the partnership will significantly increase the buyer value by creating a better overall experience for the customer.
Bigger company seal of approval
When a new and unestablished company joins into a partnership with an established and influential company, the smaller company’s product will be given the seal of approval. If the customer respects the decision making of the bigger company, that will have a rub-off effect on the smaller company even if the customer has not used the new product.