When our clients talk to us about partnership agreements; in the same breath, they speak of cooperation, long-term relationships and working together for a common goal.
Partnership agreements are also known as channel partnerships or managed partnerships. Most IT or tech-based companies are used to such routes to market; however there are many ways to manage this relationship. Options include, having targets, or not; including a territory as part of the agreement, or deploying a more laid back approach to territory.
In any case, what every client is attempting to achieve, is a network of partners working towards building additional regular business.
Three issues to consider include
Managing your Liability
When your organisation engages with Partner company, generally, the idea is to combine both organisations’ strengths to work together to deliver a service/product to the Partner’s customer. However, there should be a clear idea who delivers each part of the service. It’s critical, the contract outlines the key identifiable areas of delivery, supported by the legals to apportion the appropriate liability to each party.
Managing capacity/resources
Gain insight into the Partner’s capabilities. Ensuring you are Partnering with a company who can actually deliver what is in the Clients brief and not just per the “marketing” is important. Otherwise, your time may be monopolised by the partner’s employees seeking you to plug the gaps in their service offering. Having the correct legals to support such an issue will help manage the risk.
Get the partnership that works for both parties
Contracting with a Partner, also means aligning yourself with the Partner’s company culture. It may be savvy to avoid becoming an extension of their chaos, for example avoiding random meetings, false deadlines, and the culture of everything being urgent, will make the experience of Partnering more manageable. Again, it’s key to have the correct contractual sections to support these issues if or when they happen.
Would you like to chat through your options and get your queries answered? Arrange a call with David using the calendar below and he will be delighted to connect with you.