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I’ve been thinking a lot lately about the alchemy of impactful partnerships: We’ve been fortunate to have some amazing partnership wins over the past decade — and plenty of failures, too. Over time, my team and I have gotten better at selecting partnerships that will be a big win for everyone involved. But as exciting and full of promise as they may be, jumping into any kind of trade deal is not something to take lightly.
Whether it was creating a long-standing relationship with a large tech brand or creating a relatively new opportunity with a well-known creator and journalist, I have always believed that partnerships should be designed to deliver tangible value to all parties and their success needs. rely on a solid process to ensure the best results.
While data shows that partnerships are a good idea for creators and entrepreneurs looking to expand their reach, increase revenue and build brand value, they are only beneficial if defined and approached effectively. And the reality is that many of them fail due to mismatched expectations.
For creators and entrepreneurs, the question of when, how and with whom to collaborate will inevitably arise at some point in their journey. Here’s what to consider if you’re looking to start a business partnership that beats the odds.
Be proactive in exploring your options
There are many different types of partnerships you can enter into, but before you do, take the time to consider which one best suits your business, whether it’s a traditional brand sponsorship, a mutual exchange, or a more collaborative.
And if you haven’t been contacted by a brand, there’s no need to wait for them to come to you. Being proactive in identifying and pursuing opportunities can also produce incredible results. Sometimes it all comes down to the right conditions occurring at the right time.
Take Coastal Drone Academy, for example, a creative company that saw an opportunity to expand its reach when drone operators faced new regulations and certification requirements. They partnered with Best Buy to package their introductory course with every drone sold. The creation business benefited from the retailer’s large customer base and significant brand association. Meanwhile, Best Buy has been able to provide real value to its drone sales.
Enter with your eyes, mind and heart wide open
Knowing exactly what you’re getting yourself into is important to the success of your partnership. But so is keeping an open mind and heart. I realize this might sound a little corny, but partnerships, like any relationship, are built on trust above all else. Here are some helpful ways to approach partnership building with this in mind:
- First, try to understand what your potential partner really needs
Most entrepreneurs start partnership ventures with their own desires first. I think this is backwards. For partnerships to work, they need to benefit both parties, and the best way to ensure this is to truly understand what your partner needs. Do your research and avoid making assumptions about the intentions of others. You can build trust with a potential partner – and a more creative and powerful partnership idea – by going in with an open mind and considering all the possibilities. You might even discover an idea you didn’t know was possible. - Give more than you get
Not all partnerships have to be 50/50 or even weighted in your favor. Obviously, At some point, you’ll want to make sure your needs are met, but that doesn’t necessarily have to happen immediately. It can be a good idea to give more than you get in a partnership, at least initially, even if you only get 20% of the value. Approaching it generously can open the door to trust, which can ultimately pay off in the long run. - You know All the interested parties
While you may be dealing with a marketing or sales team, make sure you discover all the players involved as the partnership develops. This could include tech support people and developers, and especially senior executives or department heads who may have final approval. Involving them all in early negotiations can help everyone get on the same page about the process and expectations. It also gives you the ability to contact other people if something goes wrong or if you don’t hear back from your primary contact. - Understand what you can control (and what you can’t)
Sharing your business with another person opens you up to the unexpected and situations you can’t always control. Be realistic about your capabilities and expectations, and don’t be surprised if the process takes longer than expected or even if employees leave. Simply put: Don’t bet your entire business on a single partnership. Plan for the best, but know that it may not work out that way. - Cook in measurement and evaluation
So many creators form partnerships that never deliver. Quantifying your expectations upfront gives you the ability to measure success and regularly check in on progress. If the needle doesn’t move at all, you can decide how best to act. Better yet, include a clause in your contract that makes partnership reviews automatic and makes renewals contingent on reaching certain milestones.
Bonus Consideration:
- Is the risk asymmetric?
Take a cue from Jeff Bezos on how to assess risk. Is it asymmetric – meaning the potential return or potential downside risk is significantly greater than the other? For example, an amazing potential return with limited losses, if it fails, should be an easier partnership to engage in than one in which the downside could be much worse than any potential gain. Sometimes it is possible to mitigate risks in the partnership agreement too, but it all starts with understanding both the best and worst case scenarios. Avoid the natural bias of only looking at the positive side and ignoring the negative side.
No matter how you structure and approach your partnership, the benefits will go beyond the parameters you set for exposure and sales. A collaboration can become a time and motivation force, pushing you into higher gear with deadlines and deliverables that may seem less urgent when working alone.
But keep in mind that, although you may be tempted to jump into the first partnership offer that comes your way, I would caution you, even if it corresponds to the values or contents of your core business. My biggest piece of advice is to do a gut check before signing on the dotted line. Or ideally much earlier in the process. Does the partnership feel right to you? Are you willing to give as much (or more) as you will receive? Do the benefits outweigh the risks? Depending on the answers to these questions, remember that there is no obligation to proceed. Just like choosing a life partner, finding the right business partner can take time. Being rigorous from the start can be a great way to get your feet wet before diving into the deep end.