The key to successful partner marketing is finding the right fit. Like in life, you want a compatible match where complementary strengths come together to deliver collective growth. Sure, a recognizable brand or large audience might catch your eye at first, but building the right partnerships means looking beyond the superficial to ensure there’s alignment with your company’s core values, goals, and strategic direction.
When done correctly, partner marketing programs should be mutually beneficial. According to Forrester, “45% of B2B marketing decision-makers say the primary source of the organization’s revenue comes from new or renewed business from ecosystem partners.” Additionally, 60.3% of marketing leaders report that co-marketing campaigns have a slightly or significantly higher conversion rate and that partner-attached deals are at least 26-50% more likely to be won than average, according to Hubspot.
So, how can B2B enterprises evaluate whether a potential partner is “the one”?
7 questions to get to know each other better
Businesses must carefully evaluate every aspect of the relationship—from brand reputation to shared values and even legal considerations. Asking the following questions can help ensure visions align, values are upheld, collaboration is effective, and there’s a common understanding of what success looks like.
1. Is the partner trustworthy and proven in the market? Avoiding risk requires due diligence, and that means conducting background research into a potential partner’s financial stability, values, and ethics. Has the organization dealt with any lawsuits, disputes, or penalties? Do they hold the necessary certifications or licenses to adhere to industry regulations or execute the partnership? What is the overall brand reputation in the market? Categorize information and prioritize based on what may be an acceptable or unacceptable risk for your organization. The last thing you want is a partner that is going to make headlines—in all the wrong ways.
2. Does this partner have a shared vision for the market and customers? Look into a partner’s business practices to ensure both organizations are aligned long-term around a common vision and growth goals. Search news articles, filings, marketing materials, analyst reports, and more to have a clear sense of your partner’s path forward. Know what to expect by ensuring past business dealings have been fair and transparent.
3. What gaps in expertise, reach, or resources does the partner fill? Both sides should bring strong capabilities to the table in a partnership. Inventory your company’s strengths and weaknesses against a potential partner’s. For example, does one partner have a large marketing organization or a co-marketing budget behind them? Does one have a stellar sales team? Meet regularly and hold transparent conversations around expectations for the relationship. Conducting a pilot project can also be a great way to test the waters before diving into a larger agreement.
4. What is the estimated cost and benefit of the partnership? Once you identify partnership goals, calculate the potential ROI to justify the business decision. Consider the many near- and long-term factors, such as initial investment costs (time, resources, technology, etc.) and ongoing costs (marketing, maintenance, customer support, etc.). Acknowledge intangible benefits too, such as brand visibility or how the partnership could position you strategically for future business or alliances.
5. Is there a clear revenue sharing or commission structure? Is there an equal, proportional, tiered, performance-based, or other revenue split model? Are there incentives that need to be considered? Both parties should assess each partner’s contributions and what success looks like—and then get legal sign-off once you’ve agreed upon terms so there’s no room for misinterpretation.
6. Are the roles and responsibilities across all aspects of the partnership execution clear? Clear communication is critical from the start to ensure your partner is matching your commitment level. Formalize the agreement in a legal document that outlines all details of the partnership and rules for engagement. Include provisions for measuring success, what to do in case of a dispute, and what to do if one partner wishes to exit or dissolve the partnership altogether.
7. What are the KPIs for success and how will they be measured? Bring together all stakeholders to define what success will look like and how it will be measured. Recognize, however, that partnerships can ebb and flow. That’s why it’s important to conduct periodic reviews and allow for flexibility and adjustments as the needs of both organizations evolve.
Engage all your stakeholders early on
Involve all stakeholders across the C-level, business development, procurement, legal, marketing, sales, and more to evaluate the various aspects of compatibility from their standpoint. Recognize there’s no “one-size-fits-all” evaluation when it comes to what will make or break a partnership. Is your leadership more risk-tolerant? Are there operational challenges to navigate? Are there legal concerns? Where will the marketing infrastructure and firepower come from? Investigate all the angles from different key perspectives.
When companies find true compatibility, they can create long-lasting collaborations that pay off for both parties. It all starts with being honest about your organization’s values and asking the right questions.
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