Developing Effective Partnerships to Drive Growth in Your Online Business

In the modern business world, competition fuels much of the progress we see around us. Even companies that seem to monopolize a certain field are always watching their backs.

For example, look at how Google has been threatened by the lesser search engine from Microsoft and Bing since the latter introduced its ChatGPT-inspired AI chat feature.

Indeed, there is a good case for competition among businesses operating in the same niche. Customers will only use one product, and you must ensure that yours delivers the most value.

But does that mean businesses exist in self-made silos? Certainly not. The smartest businesses know how to build partnerships to deliver even more customer competition.

Apple and Samsung might be competitors when it comes to mobile phones. But did you know that Samsung crafts the displays of iPhones? That is the fruit of partnership.

As much as competition is the lifeblood of business, companies must be able to build partnerships with other companies and, in certain circumstances, even competitors to achieve mutual benefits.

Benefits of Partnerships to Online Businesses

For online businesses, building strategic partnerships is even easier. CEOs and entrepreneurs have kickstarted partnerships via a Twitter post or a viral Instagram photo. So, it would help if you looked at how you can drive growth to your business through effective partnerships.

Some benefits you stand to gain are that strategic partnerships help you to:

• Multiply your brand awareness by marketing your products and services to a broader audience.
• Tap into the customer base of the other company. This happens when, for instance, a sports fashion company partners with a gym franchise.
• Enhance your product offerings to meet rising demand.
• Overcome the challenges of limited growth, especially if your company is starting or struggling to gain traction.
• Build authenticity for your small business when you partner with a more recognized brand.

How to Develop Effective Partnerships

One aspect that many entrepreneurs squirm at is that maintaining partnerships requires some trade-offs and compromises. You have to be able to share your profits, data, customers, reputation, products, etc. However, looking at the long-term benefit and trusting your partners to align with mutual goals becomes easier.

So, how exactly do you go about this? Find some tips to guide you below.

1. Identify a Need in Your Market

Before finding a partner, you must have identified a need only that partner can help you fill.

This could be a market gap or an audience pain point you cannot address alone. Or you just discovered that sharing the weight with a partner would be a wiser business decision.

For example, if you sell online courses but struggle with finding students, you might want to partner with a platform that can help you deliver your courses in a more attractive format to a ready audience.

One way you can do this is through Eye10’s Industry Checker. By identifying the leaders in your industry and determining how they surpass your capacity, you can make moves to close the gaps.

2. Find a Partner with Mutual Goals

Your partner must share the same vision and values as you do. Otherwise, there would be a lot of friction once the partnership is in motion. If you have certain standards for communicating with your customers, don’t partner with a company that does not share the same regard for customers.

More so, you and your partner must share a similar target audience. If you have written a book for business professionals, a fashion influencer on Instagram shouldn’t be who you work with. It is wiser to go for a LinkedIn influencer.

This ensures that your partner has complementary skills, resources, and expertise that can add value to your partnership. Use the Eye10 Competitor Research tool to ensure you are not contacting direct competitors whose goals may not align with yours.

3. Establish Clear Roles and Responsibilities

What differentiates a partnership from a client or customer relationship is that you are not simply paying for your partner’s products and services. Instead, you have a part in bringing mutual value to both brands, as does your partner.

So, to avoid future misunderstandings, you must clearly define what each party in the partnership must do and expect from the other regarding objectives, metrics, and general direction for the partnership.

Also, clearly define the boundaries for the partnership. This is particularly important if you exchange sensitive data and some intellectual property. The other party must understand and be willing to abide by the mutual expectations you have set for each other.

4. Create a Partnership Agreement

No matter how many meetings you have or promises are made, you can’t be certain of anything unless there is an agreement document detailing everything about the partnership.

Details that should be in the partnership, besides the overall terms and conditions, include purpose, duration, scope, structure, ownership, revenue sharing, expenses, liabilities, intellectual property, confidentiality, termination, dispute resolution, and so on.

Of course, you must do this in consultation with lawyers and other necessary aspects. Don’t take anyone’s word unless it is put in a written, unfalsifiable document.

5. Maintain Regular Contact

This is concerned with after an agreement has been reached. There must be good communication to sustain the partnership. This means communicating regularly and effectively.

Also, there should be regular feedback from both parties to each other. You should be able to share updates on progress and results, challenges, opportunities, help, advice, etc.

This ensures that the partnership progresses with mutual respect and honesty.

Conclusion 

Partnerships are undoubtedly a powerful way to grow your online business. You can’t afford to exist in a silo when opportunities for multiplying your customer base and revenue potential are available. It will certainly be challenging, but you can make it work by following the tips above.

When trying to find relevant real-time insights about your industry and niche, using the Eye10 Competitor Research and Industry Checker tools for analysis is always useful. Sign up for a free trial worth $3 today and experience the enriching experience.