There are different companies that I want to contact to see if I could setup a strategic partnership with, where both of us would benefit. However, I want to avoid having to do a rev/profit share partnership because I feel if we both benefit in increased revenues through this partnership why would I have to make a rev/profit deal. Also, what are some of the most common strategic partnership agreements that usually take place? Are they normally a rev/profit share deal?

There are many partnerships and strategic alliances created without sharing revenue. It starts with the value proposition and that one should contain a clear win/win/win: win for you, for your partner and for the customer. The partnership needs to leed to synergy, often the phrase 1+1=3 is used and thus the result of the partnership needs to be bigger than you and your partner can achieve alone.

My advise to customers is always to begin with the value proposition, from there create a clear needs/contributions/benefits matrix and use that for the conversation with your partner. It depends a bit on your business, but quite often when these are worked out well then there is no need for the business model to contain a revenue share model.

Feel free to schedule a call to take a deeper dive. As a business coach and certified strategic alliance professional it is my daily work to help companies create successful strategic alliances.

Answered 5 years ago

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