Why partnerships are a fraud ?

The good intentions of a partnership

Partnerships are very loose agreements.
Even if there is a commitment from both and if there is a legally binding document there are no efforts that can be imposed from one party to another.

One or more people from each company agree to partner for presenting a combined solution in order to develop the market. In most cases each of the parties involved see a benefit in this partnership.
In some cases the partnership manager was eager to sign another partnership as his bonus is depending on the number of partnerships signed each quarter.

The reality business test

After the great announcement and enthusiasm with the press conference, press release and interviews, the partnerships needs to be tested to the real world: the real business case.
When a partnership comes to the execution phase other people become involved, who might not see or perceive the same benefit or any benefit for this collaboration: marketing and sales.

Marketing in partnership

Marketing needs to promote a solution that is different from the current family of solutions. Different product – hence different market or market approach.
Marketing needs to have the required budget to afford spending time and money on the combined solution.
At the same time the marketing departments of each of the partners need to agree about method reach, spending amounts, channels used, media used, type of advertising.
Promoting the partnership solution needs collaboration of marketing having different opinions of methods used and budgets.
Partnerships overlook the fact the marketign departments need to co-operate and collaborate in order to spend the money efficiently.
Who decides what ?

Sales in partnership

The salesmen might not be interested as:
- Their bonus system or commission system doesn’t include the partnership offering or doesn’t include adequately the combined solution.
- He doesn’t find it interesting
- Has the perception his market is not ready for the new solution

Salesmen could just consider the partnership as a waste of time as it requires to:
- Learning about the combined solution
- Explaining the benefits to the customers: more cumbersome than without partnership
- Sell the solution of the partner: what about the commission on that solution?
- Take the risk of selling third party products or solutions: unknown territory = risky business
- Manage the problems of the implementation or deployment of the combined solution
- Have a support team that supports the combined product as one

All this while they could have been generating leads and sell the company products or solutions having clearly defined targets and commissions in a known market.

Sales can make efforts to address the market and find potential customers, but once into the negotiation phase, the salesman of the partnership will step in and can deviate and steer away the deal away from the combined product.
The salesmen need to trust each other for not stealing the leads and customers.

Partnerships prerequisites

Although many partnerships start with good intentions, most will fail during the execution.
Make sure the combined solution or partnership:
- Has a significant potential market
- Can be supported by both marketing departments
- Agrees on the marketing budgets upfront
- Is part of the commission scheme for sales
- Makes life of the salesmen easier not more complex
- Is fully tested and supported in order not to waste time of the salesman
- Has build-in systems to avoid lead and customer stealing

It is rare that a partnership actually works out for both parties involved as most companies see a partnership a method to sell their products or solutions through the channels of the partner with or without the partners’ products or solutions.
That’s why most partnerships are a fraud as the goal is not to sell the combined product but more of their own getting easy access to the customers and lead generation of the partner company.

How many of your partnerships have ever been successful ?