Many of us make it a priority to find and partner with companies that can add to our offering or extend our reach. And we rightly celebrate each such pairing, often with a mutual press release.

And sometimes that’s all we end up doing. Call it a “press release partnership.” Or an opportunity missed. Or a relationship not nurtured.

Finding a supplier, distributor or other partner is the easiest part. Carefully planning the mutual activities to move toward a stated goal is something else. It takes real effort and planning on both sides of a partnership between companies to make it work.

Depending upon the size of the companies and complexity of the products or services involved, it is fair to assume that you’ll need to dedicate a resource to this effort, sometimes a full time resource at that. Consider a sales relationship where your product will be in the bag of salespeople from the partner company. After an initial focus perhaps during an introductory meeting or training session, the salespeople hit the road.

And that’s the last you often hear about their promotion of your product—because they are commissioned upon their own company’s products and measured by the success of those sales, not yours. Yet, the partnership was intended to help their people sell their products by enhancing or completing their line. Why would this partnership—one that benefits both companies—fail to succeed?

In spite of the best efforts of senior management in creating such a partnership, the success always lies in the hands of those closest to the end customer. The only way to assure continued success in such a relationship is to permit those in sales to be in direct contact with their counterparts in the other company, something often discouraged by sales management from the selling organization as a distraction from achievement of quota for both the salesperson and manager.

Which brings us back to senior management and the original reason such a partnership was created in the first place. Such a partnership requires much more than a general agreement at top levels. Consideration of pricing strategy, mutual compensation, training of salespersons, creation of custom collateral material, availability of technical sales support, continued contact between sales counterparts, access to those who act as technical liaisons to sales, and updates to the field of changes and enhancements are all components of a successful partnership.

None of those components are easy or cheap. Without a plan, these partnerships usually end up merely as press release partnerships, fading into the sunset shortly after announcement. Do you recognize the symptoms?

SOURCEBerkonomics
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Dave Berkus
Dave Berkus is a noted speaker, author and early stage private equity investor. He is acknowledged as one of the most active angel investors in the country, having made and actively participated in over 87 technology investments during the past decade. He currently manages two angel VC funds (Berkus Technology Ventures, LLC and Kodiak Ventures, L.P.) Dave is past Chairman of the Tech Coast Angels, one of the largest angel networks in the United States. Dave is author of “Basic Berkonomics,” “Berkonomics,” “Advanced Berkonomics,” “Extending the Runway,” and the Small Business Success Collection. Find out more at Berkus.com or contact Dave at dberkus@berkus.com

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