Strategic Alliance Marketing: One of the Most Effective Strategies for Rapid, Low-Cost Business Growth
A Message From Ryan Martin...
This method can enable you to leverage your existing business assets to achieve higher ROI and increase your equity in your business. It’s the concept of Strategic Alliance Marketing.
A Strategic Alliance is a win-win strategic partnership between two or more businesses or individuals, who agree to leverage each other’s existing resources in order to achieve common economic objectives.
Resources could be in the form of technology, relationships, access to existing customers, expertise, knowledge, credibility, employees, facilities, finance, etc.
Commonly confused with Joint Ventures, which are joint-projects that usually require creating third company to form the partnership, Strategic Alliances are not as formal and usually proceed with a contract or a letter of agreement.
With Strategic Alliances, the common objective is to increase sales & profits. This is a low-risk arrangement where both parties benefit immensely as a result of very minimal effort.
A very simple way to understand it is like this..
- Businesses sell products that people want to buy.
- Usually more than one business serves that market with related products & services
- Businesses can easily reach more people and sell more products by partnering with another business that reaches the same market
- Two businesses decide to work together under an alliance.
- One of them acts as the ENDORSEE – they provide the products/services to promote.
- The other acts as the ENDORSER – they tell their existing customers about the other business’s product and make a commission on each sale.
- Both parties increase their revenues & profits as a result. So, as a business that sells products or services, you can quickly increase your sales & profits by simply partnering with another business that reaches more of your market. They will either have you refer people to them as well, or they’ll take a % of the profits that they generate for you – profits that you wouldn’t have otherwise had.
This is cheaper, faster & more effective than advertising, and more sales will result because the JV will leverage the existing relationship and rapport that each business already has with it’s existing customers.
Strategic Alliances are the fastest and most effective way to:
- Sell your product in massive quantities – And make bigger profits doing so.
- Expand your market reach.
- Brand your company (or yourself) as being very credible in minimal time.
- Generate cash-flow.
- Increase awareness of your product or service.
They are so effective because, by working with another company to market your product (or theirs), the potential buyers being reached will be much more open and accepting towards the offer – they are already familiar with the company that’s contacting them.
They already trust the business, and quite often, they are repeat buyers. And that means that they’ll likely buy what is recommended to them as well.
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