You can try to independently find your ‘place under the sun’ on the market, or find partners and support in your work, which can significantly ease your situation. In theory, partnership as a kind of collaboration can be easily arranged; partners are complemented, enter joint capital, knowledge, and information, but also jointly bear the risk of their business moves.
But in practice is a bit different situation. Not everyone can find the right partner, nor they can handle sharing profits and credits. What are other disadvantages of collaborating with others, see on the following page:
You can find a good business partner, but they can be challenging to work with. That’s why companies rely on channel intensive strategies to motivate their future/current partners to take action. If that works, everyone wins. But if it fails, collaboration usually ends, and every partner continues their own business path.
Motifs for Finding a Business Partner
Excellent and high-quality partnerships should be beneficial to all participants. That is why both partners strive to do their best to achieve the goals of this cooperation. Any company can encounter difficulties. Through cooperation, companies can take advantage of the expertise and experience of others to overcome challenges in business. Business partners working together to overcome difficulty and achieve goals are stronger than when they act individually.
The first significant benefit is reflected in finance. Associated business entities have more options for increasing sales, exports, attracting capital, the ability to share facilities, resources, equipment, etc. By combining the efforts and expertise of various industries, partners are capable of innovation and growth. This way, they increase their competitiveness at many levels.
Partnerships allow better use of human capital. Small firms usually don’t have enough people; therefore, the partner that brings knowledge, experience, learning, and motivation to all business partners. Thus, intellectual capital is better exploited. The exchange of know-how among the companies that have built the alliance creates the way for a successful business.
Most Popular Channel Incentive Programs
Channel incentive program is used to make your partner behave in your (mutual) favor. These are usually one-time actions (not necessarily payments, but different privileges). If a partner develops a desired behavioral pattern, incentive programs are no longer necessary. In which ways you can do this, see below.
Encourage Partners to Act
Your partners need a motive to ‘move’ them. If you suggest, for example, a higher percentage of sales of a product, you will drive them to increase the sales. This type of financial motivation will make them work on a better promotion for your product and brand, which brings many benefits for all parties in the partnership.
Sales Performance Incentive Funds
If your product sales go wrong, these funds are meant to reverse this situation. Individuals who have direct contact with customers should be given an incentive (money or other privileges) to work to promote your product more efficiently. Your sales partner has a direct benefit in terms of increased revenue, which is reflected further on the increase in demand and sales in your company.
Invest in Your Partners
The good marketing strategy that your partner has implemented has led to business success, and both sides are satisfied. One of the partners may decide to invest the earned funds in a partner’s project in order to encourage the action. These are COOP funds (what those are, learn from this source), and there are also Marketing Direct Funds that can, for example, be invested in improving promotional activities and customer relationships.
Reward Partners for Taking on Your Job
One of the advantages of good business cooperation is that one partner can take over some of your duties and activities (related to a joint business or project) if other side does that at the moment. Of course, the party that did the job should be adequately rewarded in the form of activity-based incentive, but the point is to do that before, not after, the action.
Every company wants to become successful, to develop and grow, as reaching business goals. Competition and the situation on the market should encourage business owners, and move them forward; that is, the environment should be inspiring, quality, and productive. Therefore, companies have to connect with other business entities, which are connected with their business.