According to a Forrester report, high-maturity companies get up to 28% of their revenue through partnerships.
This means that strategic partnerships can outperform even paid search.
But how do you form these partnerships?
In this comprehensive guide, we will be taking a look at:
- What are strategic partnerships and what makes them so powerful
- Different types of strategic partnerships
- The legal side of forming strategic alliances
- How to find partners for your own business
Let’s get into it.
Link building cheat sheet
What is A Strategic Partnership?
A strategic partnership is a collaborative alliance between two or more businesses or organizations.
It involves leveraging each other’s strengths, resources, and expertise to achieve common goals.
These partnerships can be formed for various reasons, such as expanding market reach, generating additional traffic, sharing research and development costs, or gaining a competitive advantage.
One prominent example of a successful strategic partnership is the partnership between Apple and Nike.
This collaboration brought together Apple’s technological expertise and Nike’s extensive knowledge in sports and fitness.
Through this partnership, they created the Nike+ iPod, a product that revolutionized the way people track their workouts using their iPod and Nike shoes.
What makes this partnership work is the synergy achieved by combining different strengths and capabilities.
Apple’s innovative technology and Nike’s knowledge of the sports industry allowed them to create a unique and marketable product.
Additionally, both companies were able to tap into each other’s customer base, gaining exposure to new markets and increasing their brand recognition.
Benefits of Strategic Partnerships
Besides the obvious opportunities to increase each other’s sales, there are other benefits that working out strategic partnerships can net you.
Let’s talk about them.
Sharing Risk and Developing Ideas
By collaborating with a partner, organizations can distribute the burden of financial and operational risks.
Whether it’s entering a new market, developing a new product, or investing in research and development, these endeavors often come with uncertainties and potential setbacks.
Like Ford did by partnering with Rivian to tap into the electric vehicle market.
However, by sharing the risk with a trusted partner, businesses can mitigate the risks associated with entering new market segments and increase their chances of success.
This allows companies to pursue growth opportunities with more confidence and reduced financial strain.
Partnering with another business or organization that excels in areas where you lack expertise can significantly enhance your overall capabilities.
This can include accessing new technologies, tapping into specialized knowledge, or leveraging a larger network and customer base.
For example, a solo influencer can achieve much more as part of an established affiliate network (such as Amazon Associates) than on their own.
This allows you to achieve economies of scale, pool resources, and reduce costs, leading to increased efficiency and profitability.
Strategic Partnership Types
Now, on to the many different types of strategic partnerships, and some real-world examples to give you a better idea for each.
The goal of a marketing partnership is to leverage each other’s strengths and reach to maximize brand exposure and generate mutual benefits – commonly in sales.
One example of a marketing partnership is the collaboration between GoPro and Red Bull.
GoPro, a leading action camera brand, partnered with Red Bull, an energy drink company known for its extreme sports involvement.
Through this partnership, the two companies worked together to create and promote immersive and adrenaline-fueled content.
GoPro provided their state-of-the-art cameras to capture exciting sports footage, while Red Bull showcased this content across their various marketing channels, such as their website, social media platforms, and events.
This partnership allowed both companies to tap into each other’s passionate and adventurous target audiences, increasing brand awareness and driving sales.
Affiliate and Referral Partnership
In an affiliate partnership, one company promotes another company’s products or services and earns a commission for each sale or referral made through their marketing efforts.
In a referral partnership, businesses refer customers to each other and mutually benefit from the referrals, often through discounts, rewards, or revenue sharing.
Perhaps, the biggest example of an affiliate and referral partnership is the collaboration between Amazon and influencers or content creators.
Amazon’s affiliate program, Amazon Associates, allows influencers to earn a commission by promoting Amazon products on their blogs, websites, or social media platforms.
By leveraging the influencers’ reach, Amazon generates more sales, while the influencers earn a commission for driving those sales.
Supply and Supply Chain Partnership
In both supply and supply chain partnerships, businesses collaborate to optimize their supply chain operations, enhance efficiency, and improve overall performance.
These partnerships involve close cooperation and coordination between suppliers, manufacturers, distributors, and retailers to ensure a smooth flow of goods or services from production to end consumers.
Walmart and P&G have a longstanding strategic alliance where P&G acts as a key supplier for Walmart’s retail operations.
This partnership involves joint forecasting, inventory management, and collaborative planning to ensure that P&G’s products are readily available on Walmart’s store shelves when needed.
Co-branding occurs when two or more brands join forces to create and promote a new product, service, or story.
This collaboration allows them to reach new markets, increase brand awareness, and create unique and differentiated products or services.
As an example, let’s take a look at a partnership between Target and luxury designer brand Missoni.
The collaboration resulted in a limited-edition collection of affordable Missoni-designed clothing, home goods, and accessories exclusively available at Target.
By combining the high-end reputation of Missoni with Target’s mass-market appeal, the co-branded collection attracted a wide range of customers, resulting in increased foot traffic, sales, and brand exposure for both companies.
Chances are you already know what product placement is.
You know, the action movie hero casually sipping a can of coke-type deal.
Or, James Bond driving an Aston Martin, to give you a concrete example.
This subtle form of advertising allows companies to reach a wide audience and create brand exposure by integrating their offerings seamlessly into popular media content.
When done right, product placements influence consumer perception and create positive associations between the featured product and the content in which it appears.
An example of a tech partnership is the collaboration between IBM and Salesforce. In this partnership, IBM’s artificial intelligence platform, Watson, is integrated with Salesforce’s customer relationship management (CRM) software.
By combining IBM’s advanced AI capabilities with Salesforce’s CRM expertise, the collaboration provides enhanced insights and predictive analysis to sales teams.
This partnership allows businesses to harness the power of AI to drive more personalized customer experiences, improve sales performance, optimize operations, and provide better technical assistance.
The collaboration between IBM and Salesforce showcases how tech partnerships can leverage each other’s strengths to create synergistic solutions that benefit both companies and their customers.
As the name suggests, a financial partnership involves money (lots of it).
Just look at PayPal and Mastercard.
Through this partnership, PayPal customers are able to link their accounts with their Mastercard cards, allowing them to easily and securely make online transactions.
PayPal gains access to a wider pool of Mastercard users, and Mastercard expands its presence in the digital payments space.
A strategic integration involves a more comprehensive collaboration where the companies aim to achieve greater synergies, streamline operations, and enhance overall competitiveness.
This typically involves a deeper level of organizational integration, including shared leadership, shared goals, content creation, and unified decision-making.
An example of strategic integration is the merger between Disney and Pixar Animation Studios.
The two companies joined forces to combine their expertise in animation, storytelling, and entertainment.
Through this integration, Disney gained access to Pixar’s cutting-edge computer animation technology and creative talent, while Pixar could leverage Disney’s vast distribution network and brand recognition.
The merger resulted in successful collaborations such as the creation of blockbuster movies like “Toy Story” and allowed both companies to strengthen their position in the animation industry.
Charity is great.
Not only because helping people is the right thing to do, but for PR and even marketing reasons too.
A good example would be TOMS.
TOMS operates on a “One for One” model, where for every pair of shoes purchased, TOMS donates a pair to a person in need.
In addition to footwear, TOMS has partnered with organizations to address other social issues, such as providing clean water or promoting eye healthcare.
These partnerships allow TOMS to expand its reach and impact by leveraging the expertise and networks of these organizations, while the nonprofits benefit from the resources and support provided by TOMS.
This partnership involves the sharing of infrastructure, APIs, or data to create a seamless user experience and provide added value to customers.
Like Spotify’s integration with Uber.
Through this partnership, the Spotify music streaming service was integrated into the Uber app, allowing riders to control the music during their trips.
This platform partnership created a more enjoyable and personalized experience for Uber riders, who could easily access and control their favorite music seamlessly during their rides.
By integrating their platforms, Spotify and Uber were able to enhance the overall user experience, differentiate their services, and reach a wider audience.
Sometimes the best way to do something is to have someone else do it for you.
This is what outsourcing is all about.
The bigger the company gets, the greater the chance that they outsource some aspect of their business to another.
This especially applies to lengthy and resource-intensive processes, like link building, or manufacturing.
For example, Foxconn handles a major part of Apple’s iPhone and iPad manufacturing.
What Makes a Good Strategic Partnership?
Now that you’ve seen successful partnership examples, let’s take a closer look at how you can achieve similar results.
Clear Goals and Planning
A good strategic partnership should have clear goals and planning defined from the outset.
Both parties involved need to have a shared understanding of what they aim to achieve and a well-defined roadmap or PR plan for reaching those objectives.
Who does what, and exactly when?
This clarity ensures that the partnership is focused and aligned towards a common purpose.
It is essential that the partners have compatible values, complementary strengths, and a shared vision.
When the partners align on their strategic direction and complement each other’s capabilities, it enhances the potential for synergy and mutual benefit.
Regular communication and collaboration should be maintained to update and align on goals, strategies, and progress.
This involves conducting regular check-ins, sharing feedback, and openly discussing any areas of misalignment to ensure both parties are working towards a common vision and purpose.
One of the easiest ways to keep track of everyone’s progress is to use a task management tool like Asana.
Clear and ongoing communication ensures that both parties are on the same page, promoting a healthy working relationship.
A Pinch of Trust
This may sound a bit corny, but trust is the foundation of any good strategic partnership.
Both partners need to have confidence in each other’s capabilities, intentions, and reliability. A pinch of trust allows for transparency, collaboration, and effective problem-solving.
It fosters an environment where mutual support and cooperation thrive, leading to long-term success for both parties.
Legal Side of Strategic Partnerships
From a legal standpoint, every type of strategic partnership described above falls into one of three categories: equity & non-equity alliance, or a joint venture.
An equity alliance is a type of strategic partnership where two companies invest in each other and acquire a certain ownership stake.
An example of an equity alliance would be Nestle and Starbucks.
This alliance involves sharing resources, expertise, and risks, with both partners having a financial interest in each other’s success.
A non-equity alliance, on the other hand, is a strategic partnership where companies collaborate without acquiring ownership stakes – like the partnership between Ford and Volkswagen.
This type of alliance typically involves sharing resources, knowledge, and capabilities to achieve common goals, without any direct financial investment or ownership transfer.
A joint venture is a strategic partnership where two or more companies form a new entity, separate from their individual businesses, to pursue a common objective.
In a joint venture, the partners contribute resources, share risks, and enjoy shared control over the operations and outcomes of the venture.
Remember Sony Ericsson? The formation of that company (and its products) is very much a joint venture between the Sony Corporation and Ericsson.
This type of partnership allows companies to combine their strengths and expertise to explore new markets, undertake large-scale projects, or access shared resources for mutual benefit.
How to Create a Strategic Partnership Agreement
A strategic partnership agreement is a formal document signed by all parties of your partnership.
Here’s a brief overview of the steps to create one:
- Clearly outline the objectives and goals of the partnership. Understand what each party aims to achieve from the partnership.
- Determine the specific roles and responsibilities of each alliance partner. This will help avoid misunderstandings and address any potential gaps.
- Discuss the resources, expertise, and contributions that each partner brings to the table. It is important to have a clear understanding of what each party is expected to provide.
- Decide on the decision-making process and governance structure for the partnership. Determine how decisions will be made and how conflicts will be resolved.
- Determine the financial aspects of the partnership, including financial commitments, profit sharing, investment contributions, and expenses.
- Establish a timeline for the partnership, including the duration of the collaboration, milestones, and regular review periods.
- Discuss and include termination clauses that address the circumstances under which the partnership can be terminated and the process to follow.
- It is advisable to involve legal counsel to ensure that the partnership agreement is legally sound and protects the interests of all parties involved.
- Regularly review and revise the partnership agreement to reflect any changes in goals, responsibilities, or circumstances. This will help keep the agreement relevant and effective.
How to Find Strategic Partnerships
The best approach to finding strategic partners largely depends on the type of partnership you want to start.
In our example, we will be looking for affiliate partnerships.
For this, we will be using Respona as both the finding and affiliate recruitment tool.
Finding Partners & Their Contact Info
The first place to look for affiliate partners is by searching up other blogs that have recently published product reviews and listicle posts, since these are typically riddle with affiliate links.
To do this, Respona comes with several pre-designed campaign templates.
Let’s pick the “product review” template.
To use it, all you have to do is fill out a few simple fields:
- Your company name
- Your competitor’s company name and domain
- Your target niches
- Some aspects of your company that differentiate you from your competitors
- An incentive for your potential partner to collaborate with you (like your affiliate terms)
When once everything is filled out, click “use this template” to access the campaign editor.
Here, your search strings will already be configured based on your inputs on the previous screen.
Respona’s search engine pulls results directly from Google, and can run several queries at the same time.
Click “Continue” to set additional SEO filters.
By default, Respona is integrated with Moz, but if you have an account with Semrush or Ahrefs, you can connect it and use their filters instead.
Once you click “Run automation”, Respona will search the web for results that fit your criteria, and add them right to your outreach campaign.
All you really have to do is check the results once they’re ready.
The next step is to find valid contact information.
For this, Respona has its own email email finder.
It automates the process almost entirely – just pick the search algorithm, and type in the desired job titles and seniority levels of your ideal candidates.
For affiliates partnerships, let’s enter any titles that relate to business, marketing, partnerships, SEO, and so on – at all seniority levels.
Once you hit “Find contacts”, Respona will handle the rest, in bulk, in real time.
This process will take from a few minutes to a couple of hours depending on the size of your campaign.
Once it’s done, you may also run additional manual searches by name or domain.
The next step is to prepare your email sequence.
Crafting a Strong Pitch
Since we used a campaign template, our email sequence is already ready.
But treat is more as a suggestion rather than the rule – we highly recommend creating your own, personalized email sequence.
Respona comes with everything you need for this:
- Automated follow-ups
- Auto-populating fields
- Spam word checker
- Reply chance estimator
- Unsubscribe link inclusion option
The most important thing of your email sequence is your value proposition.
For affiliate recruitment, it’s worth mentioning the terms of your affiliate program – such as your commission structure.
The last step before launching yur affiliate recruitment campaign is to personalize each pitch.
A good way to give your pitch a personal touch is to mention something they talked about in their article.
This will imply that you have read through their content, stroking a bit of their ego.
Respona has an AI article summarizers that pulls up 10 important snippets of text to speed this process up.
Copy and paste one of these into your pitch for a quick but meaningful personalization.
Once all pitches have been personalized, you can launch your campaign and start monitoring responses.
Respona’s shared inbox can help with this as well by providing a centralized page for checking every single one of your sender emails, and replying to every incoming message, without having to actually log in to each individual account.
Now Over to You
All in all, if you don’t already have a network of strategic partners, it’s time to recruit some.
If you need help finding partners in your niche and reaching out to them to join, don’t hesitate to start your 14-day free trial with Respona to see how we can help.
Link building cheat sheet
Frequently Asked Questions (FAQ)
What are the benefits of forming a strategic partnership?
A strategic business partnership brings several benefits, such as accessing new markets or customer bases, leveraging complementary expertise, sharing resources and costs, increasing brand visibility, and fostering innovation through collaboration.
How do I find potential strategic partners?
To find potential strategic partners, you can explore upcoming events, conferences, and trade shows, network with professionals and organizations in related fields, engage in online communities and forums, or use business directories and databases to identify entities with similar goals and values.
What types of strategic partnerships exist?
Strategic partnerships can take various forms, including joint ventures, collaborations, licensing agreements, distribution partnerships, co-marketing alliances, supplier partnerships, or research and development partnerships.
The type of partnership depends on the specific goals and needs of the involved parties.
How do I evaluate a potential strategic partner?
When evaluating a potential strategic partner, consider factors such as their reputation, industry expertise, financial stability, compatibility of values and culture, strategic alignment, and their ability to contribute resources and fulfill their commitments.
What challenges can arise in strategic partnerships?
Challenges in strategic partnerships can include differences in strategic vision, divergent priorities, conflicts of interest, communication breakdowns, intellectual property concerns, and the need for effective collaboration and decision-making processes.
It is important to address these potential challenges through open communication, clear expectations, and a well-defined partnership agreement.