“There are four primary reasons behind partnerships. If you break down any deal that has ever been forged,
it can always be attributed to the following: the partnership generated revenue, saved money,
grew its user base, or improved its product/offering.
Distribution Partnership (network partnership):
When one company uses the distribution of a second company to grow its own user base
. Partnerships That Will Make Money
Money, money, money. Making money
is the first rule because it is the biggest impetus for any deal. I have seen countless startups try to court established
companies, claiming that there is a revenue opportunity if they partner. The deals that actually get done are the ones that
can prove their worth. Companies often have a minimum monetary threshold, but if you can prove that a lucrative alliance can
be made, then you should be in discussion about working together.
Partnerships That Will Grow A User base
Another motivation in strategic partnership
is the potential to leverage an existing company’s user base. Similar to the first type of partnership, the company
should be able to prove that an alliance will be mutually beneficial and will grow something for each side (one grows user
base, other grows revenue, etc.) Two great examples are the Amazon/Living Social and Uber/Savored partnerships."
