As markets expand and customers’ requirements grow rapidly, businesses need to be ready to meet their clients’ changing needs. While coming up with solutions themselves is one approach, partnering with other companies in their partner ecosystem may prove more effective than developing a new offering from scratch on your own, which can be time-consuming and expensive. Joining forces with a partner who already has the resources and the know-how can supercharge the value you’re creating for your customers.
If you’re considering forming a strategic partnership or building an entire partner ecosystem, read on for our guide to the different types partner programs and hopefully you will be able to identify the one that is right for you based on your goals and objectives.
Referral partner program
A referral partnership is a program that allows companies to refer customers to another company in their partner ecosystem. When a customer makes a purchase from the referred company, the referring company earns a commission.
Referral partner programs help companies to reach new customers through the existing network of their loyal customers.
The benefits? People trust referrals – meaning a shorter sales cycle and greater return on investment.
If you’re anything like me, you’re likely to trust real human recommendations more than anything else. So, when someone recommends a company to me, I’m more likely to trust it compared to one I found online and I need to go through a longer due diligence process. Hence, recommendation will require less convincing, and the sales process will most likely be shorter.
This type of partnership is mutually beneficial for everyone – the referrer, the buyer and the one being referred.
Reseller partner program
A reseller partner program allows companies to resell the products or services of another company in their partner ecosystem. The reselling company earns a commission on each sale they make. This program is ideal for companies that want to offer a wider range of products or services to their clients without having to create them from scratch.
Benefits? Expanding your target audience creates a great boost for your sales. Adding additional offerings to your portfolio enables you to target a new audience or expand your current one. The beauty lies in the fact that you don’t need to create something new from scratch as you’re using the know-how of another company.
It’s a win-win situation – the resold company receives additional revenue stream and the reseller gets commissions.
Technology partner program
A technology partnership allows companies to integrate their technology with the technology of another company in their partner ecosystem. It’s ideal for companies that want to offer their customers a more comprehensive solution that includes multiple technologies.
Benefits?
Integration with other technology companies means a better experience for your customers, which means a longer life cycle and better retention rate.
Clients who are able to use multiple technologies in unison are more likely to stay with you for longer. Tech stack is a huge hurdle for many corporations, so the easier it is to use your technology together with other existing software or hardware, the more likely it is that your clients are having the best experience and won’t be looking to change their current technology provider.
Corporate startup partnership
A startup corporate partnership is a collaboration between a startup and an established corporation, designed to create synergies and mutual benefits for both parties involved.
When forming a startup corporate partnership, it's important for both parties to establish clear goals and expectations. This includes defining the scope of the partnership, identifying areas of collaboration, and setting timelines and milestones for achieving key objectives.
Benefits?
Gaining a competitive edge.
For startups, partnering with a corporation can provide access to resources, expertise, and funding that may not be otherwise available. Startups can benefit from the established brand and reputation of the corporation, as well as the potential customer base that the corporation has already established.
For corporations, partnering with startups can provide access to innovative ideas that can help them stay ahead of the competition. Additionally, corporations can benefit from the agility and flexibility of startups, which can help them move quickly and adapt to changing market conditions.
Overall, a startup corporate partnership can be a powerful way for startups and corporations to drive innovation, growth, and success.
Services partner program
A services partner program allows companies to offer their services to other companies in the partner ecosystem. It can be ideal for companies that want to expand their customer base without having to spend large sums on marketing.
Benefits? A cost-effective way to accelerate your business growth and achieve a competitive advantage. Gaining new customers without having to look for them yourself is always great for your business and revenue growth. By offering unique and differentiated solutions, your company can stand out in a crowded market and attract more customers.
Affiliate partner program
An affiliate partner program enables companies to earn commissions by promoting the products or services of another company in the partner ecosystem. It can be ideal for companies that have a strong online presence and want to monetize their traffic.
Benefits?
Amplify your content marketing ROI.
It’s a low-investment partnership that doesn’t require any maintenance once established. If you’re doing content marketing (and we are sure you are), it will also amplify your marketing ROI as it becomes a passive income stream simply generated by affiliate links and partners.
Affiliate partner programs can also be a cost-effective way for businesses to market their products or services. Instead of paying for traditional advertising or marketing campaigns, businesses can pay their affiliates only when they generate a sale or lead.
As affiliate partner programs are typically performance-based, affiliates are only paid when they generate a sale or lead, which incentivizes them to promote the partner business's products or services more actively.
Overall, affiliate partner programs are relatively low risk and require relatively low investment but can offer significant benefits for both parties.
Training and certification partner program
A training and certification partner program enables companies to increase their revenue stream by offering training and certification programs to other companies in the partner ecosystem.
AWS, HubSpot are among the well-known software providers who provide training and certification programs for their partner ecosystem organizations, giving those partner companies the credibility and trust that’s important for potential clients.
Benefits? Enhanced expertise. Partnering with companies that specialize in different areas gives your business access to a wider range of expertise and knowledge. This can be particularly beneficial for companies that want to expand their offerings or enter new markets.
