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Overview:
A step-by-step guide to absolutely
dominating your niche by partnering with competitors
and related companies.
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How
is a Strategic Alliance Different than a Joint-Venture?
A
strategic alliance is often more of a referral system than it's
"more-involving" cousin, the joint venture.
Where
a joint venture would have two companies combine finances and
energies to integrate products, create a seperate product or
form a shared "subsidiary" company, a strategic alliance
would be more of a casual relationship out of mutual benefit
that would "point customers in the right direction".
So
really, a strategic alliance is merely a "lite" JV
- that's it.
Though
strategic alliances aren't only used by so-called competitors,
in this article, I'm going to focus on using this "casual
approach" to dominate your niche by actually partnering
with your competition...
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How
and Why to Join Forces With the "Enemy"...
So
many businesses worry constantly about what their competitors
are doing. In fact, some people are so fanatical about tracking
every single move their competitors make that they neglect to
differentiate and position their own business - which
can be disastrous.
However,
few people realize just how powerful an alliance would
be with most of their "competitors" - if they were
willing to see the opportunity through the deceiving lens of
animosity...
Think
about these facts:
• Your
competition is actively marketing themselves to your
target market
• Your
competition is spending a considerable amount of time and money
to build rapport with people that will also buy from you.
• Your
competition is investing a lot of time into research, development
and innovation that could benefit you as much as it does
them and their clients - without hurting their profits at all.
• Your
competition is testing, tracking and optimizing their marketing
materials continually - which could indirectly benefit
you as much as it does them.
Now
- what if you were able to leverage all of these resources
while actually helping your "competitor"...
Would
you do it?
Of
course you would!
Here's
how...
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Note:
This strategy likely won't work with direct competitors
that sell the exact same product
- but it will work (very well) with "competitors"
that sell similar solutions to a problem, or desire, that your
market demands...
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You'll
have to find a way to partner with your "competitor"
in such a way that both parties can substantially benefit from
the other's resources - but without stealing customers
or damaging anyone's credibility.
Here
are some examples of strategic alliances between competitors:
•
Upsell related products after the initial sale. If
your customers would benefit by having both of your products,
then why not include a special offer for your competitor's product
inside your own product boxes (or packaging)?
Arrange
a system where either the "upseller" gets a share
of the profits, or both parties cross-upsell.
(See
a specific example of how I did this with one of my clients
here
>> )
•
Integrate products and services. If your competitor has
a similar product that could complement your own, you might
consider arranging a deal where both you and your competitor
would offer a "bundled" package in addition to your
normal offering.
This,
like an upsell, would increase the sales volume of both parties.
(This example would work especially well for related software
products).
•
Cross endorsement. If your "competitor" isn't
really competing with your direct market, and if you could refer
business to eachother without anyone losing customers, then
simply "trading flyers" might actually be one of the
more effective (and easier) ways to partner with someone else
in the industry.
Online,
this is as simple as trading links.
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Approaching
the "Enemy"...
At this
point, you're likely thinking about how to approach your competition
somehow - without having them think that you've completely
lost your mind...
While it's
certainly not easy to develop an alliance with a so-called competitor,
if you're able to show them just how much they could gain by
doing this, chances are, they'll be open to listening to you.
Here
are some suggestions that might apply to your situation:
•
Call them and ask directly. Be sincere and to the point.
Ask them what they would think of any given scenario
or partnership proposal. This would be the way to go if you're
already on "speaking terms" with them.
•
Gradually have them warm up to you. Start communicating
with your competitor. Ask how things are going, and share "struggles".
Bounce ideas around. Start, if at all possible, a sort of friendship
with them to some degree.
Once things
are somewhat solid between you and them, approach them with
the idea. At this point, they'll be used to working with you
anyway, and it will likely just be an extension of what you're
already doing together.
•
Help or Include them in something. One of the easiest ways
to turn almost anyone into a friend (overnight) is to share
a marketing opportunity with them.
For example,
arrange to have an article written about the problem your customers
are facing - and instead of simply pointing to YOU as the answer,
include your competitors as well. Notify them about this first
to make sure that they're quoted correctly - and so that they
can clearly see that you're doing them a favour, for no reason
at all.
Continue
to build on this bond, and then, as before, approach them with
the concept.
I have
found that it is far more effective to "speak" with
action than it is with words. While you may (and will) have
some success in trying to educate your competitors to
try a partnership, chances are, it will be received with skepticism
- and possibly even hostility.
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In conclusion,
using strategic alliances to "eliminate competition"
is one of the smartest ways for both you and your "competitor"
to reach a much larger portion of your market.
By leveraging
your relationship, you can easily add a significant increase
to your bottom line - as well as your partner's.
You now
know how to turn what most people fear most (competition)
into an asset that can potentially
make you a fortune.
Take
action today!
-
Chris
Rempel, JV-Web.com
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