The importance of strategic partnerships
Since I believe that business is fundamentally about human interaction (I know, lots of people think economics and business is really some other kind of force independent of human interaction, but I think that’s wrong), I also believe that it’s important to make sure that your partnerships are strong and meaningful. And, frankly, that you develop as many strong and appropriate partnerships as possible.
We’ve worked very very hard to develop our partnerships and I think we’ve got some strong ones that we continually work to extend. Our friends at MusicIP, CDBaby, Sheridan Square and Ben Franklin Technology Partners are some good examples of how our partnerships have begun to bear fruit.
As we look to the future of our partnership strategy, we’re expanding beyond content, technology, and financing relationships to include orthogonal brand partners.
I believe that by working closely with a partner who has similar goals but moves in different circles and directions is a good way to stretch our business. And relationships that might not always seem right at first can benefit both parties in the long run.
However, you do have to be careful in picking a branding partner - the match has to make sense. Sometimes companies don’t do that, or at the minimum don’t implement well. For instance - when Coors and Napster gave away two free downloads per case of beer purchased. In my view, not a strategic alignment that benefited either party.
In finding a partner, I think you need to find one that has similar values (as humans, we all have values and businesses are no different), similar growth goals, and similar view on how to extend a partnership to grow value to both parties. A one-off event is costly and doesn’t bode well for the future - don’t do it. A long term, smart alignment where both parties can influence and impact the strategic direction and growth of the other is a good thing.
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