A strategic alliance is one the most effective ways to grow your business. Alliances like these are also known as or virtual funding will let receive many of the benefits usually related with the infusion of funds into your business, surprisingly in a short amount of time.
Benefits of a Strategic Alliance:
You can avoid having to borrow
You can avoid bringing outside investors into your business
You have one more mind to share thoughts and ideas with !
Types of Strategic Alliances
The alliances you should be looking for are product alliances and marketing alliances. (More to come on this topic in a separate article)
With MA the goal of your alliance should be to exchange customer base. Gaining access to your partner’s customer base will allow you to share your products/services. Also, there is a possibility to earn a royalty/commission or even split revenue if your partner starts making sales off of your customer base.
If your selling Domains then you should partner to someone offering domain hosting.
This is the process through which you offer your partners business products and services to your own customer base, While you partner returns the favor. The benefits is that your business is able to sell products/services without having to spend on extra requirements.With the right alliance you can direct-ship its products and also provide services directly to your customer. The best part is you won’t be needed past the sale. All you will really have to do is collect the revenue and break your partner his draw.
Business Alliances in 2016
Alliances for online business without physical products is even easier than ever. Marketing alliances are as easy as creating a direct link from one website to the your alliance partners. This is will allow customers to bounce in and out between site with the click of a button. Not only does this help you get sales from your partner’s visitors but it also helps with your ranking in google thus leading to even more visitors. This process is known as SEO. Product alliances are created and become active as soon as the customers from one business move to the other and begin to purchase products and services.
Who to form a strategic alliance with
If your selling shoes you shouldn’t be partnering with someone selling apples, it’s simply not effective.
If your selling shoes how about partnering with someone selling socks? Or better yet some selling an entire clothing line. No sense in having and amazing outfit without great shoes to match right?
Do your reaserch
Before you enter into an Alliance:
Do your research and analysis to ensure your potential partner can be trusted
Ensure your potential partner is capable and has a clean reputation
Ensure their website has a clean trust flow (bad links will do more harm than good)
Check to see who they are already successfully partnered with(another potential alliance for you)
If they pass all these points then go ahead extend an email explaining how the partnership can be mutually beneficial. Keep in mind, you are just as beneficial to them as they are to you, never feel inferior or give off that impression.
Which alliance is better for you? Let me know you think.
Here is a another articles speaking about the importance of a strategic alliance and how cost-effective it can be.