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- #1 Lowest Risk Growth Strategy?
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Welcome to another issue of Passionate Income.
Today we’ll be discussing how to grow your business through partnerships.
While most people focus on organic marketing, paid ads and cold outreach, many savvy business owners grow by partnering with other companies.
A strategy that has both powerful upsides and massive downsides.
Let’s dive in.
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I released this training because we kept getting replies from our readers about an actual business model that will work long-term and isn't overhyped.
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Want a low-risk way to grow your business?
Using a strategy that rapidly converts skeptical prospects into paying customers and clients?
If so, today’s issue is for you.
If you were to analyze the top 100 internet marketing courses launched over the past year, I’d be willing to bet almost all of them focus on traffic or conversion strategies.
From Pinterest marketing to copywriting and phone sales, these are the topics that get people’s attention the most. Why?
Because they’re appealing.
Everybody always wants to know the latest tip, trick, or hack for beating the system and coming out ahead.
The problem?
Because they’re appealing, they’re what everyone focuses on (and attempts to implement in their business).
And because of that, even the most cutting-edge strategies quickly lose their effectiveness.
Fortunately for us, there’s an under-the-radar source of leads and traffic that is exponentially easier than social media or search engines:
Partnerships
From sharing email lists to in-person events, partnerships have powered some of the largest and fastest-growing companies on the web.
The problem is, since so few people teach them as a strategy, most marketers don’t consider them as an option (let alone understand how to implement them in their business).
Admittedly, this is a deep topic we cannot cover in one short newsletter.
What we can do, however, is share some examples to get your gears turning.
For starters, partnerships are very popular in the influencer space.
As an example, I see them all the time among the comedians I follow on Instagram.
Since many of them live close to each other (mainly in Los Angeles), these comedians film sketches together, then share them on each other’s IG.
In doing so, they gain instant exposure to a group of people who've already expressed interest in comedy (their partner's followers).
And because of that, exposing their content to their partner's audience dramatically increases the odds of them picking up new followers.
Another example involves med spas partnering with dermatologists and beauty salons. Why?
While this doesn’t apply in 100% of cases, a good percentage of women who spend money at a beauty salon are likely to be open to the possibility of more involved procedures at a med spa or with a dermatologist.
Because of that, marketing a med spa or dermatologist to beauty salon customers has a much higher likelihood of converting into business compared to something generic, like running Facebook ads to the masses.
As yet another example, it would make sense for someone who teaches a traffic strategy to partner with someone who teaches copywriting or sales.
Mainly because it doesn’t matter how much traffic you generate if the people who click your links don’t convert into customers and clients.
Now, I could go on and on with examples.
But as it concerns you, what matters is reading between the lines and understanding how these businesses complement—but do not compete with—each other.
While it’s not unheard of for competitors to partner, to avoid cannibalization, it makes more sense to collaborate with non-competing companies that serve the same target audience as you.
That way, the flow of leads from one company to another does not negatively impact your (or their) sales.
On top of that, most partnerships are implemented on a revenue-share basis.
Meaning, unlike advertising—where you can put in hundreds or thousands of dollars and not get anything in return—partnerships guarantee you don’t spend money without making a positive ROI.
And it’s that ability to attract customers and clients with no risk that makes partnerships so attractive.
Unfortunately, there are some downsides.
First and foremost, the revenue-share percentages you have to pay your partners could end up being even more than you would spend on your own through organic marketing, cold outreach, or paid advertising.*
*On a cost-per-sale basis.
So, depending on your profit margins, partnerships may not make sense despite their low risk.
Second, partnerships are so rare that you may have a hard time finding business owners who are willing to collaborate with you.
Because of that, it can be difficult to find a consistent number of partners who are willing to do promotions with you week in and week out.
But like anything else, every marketing strategy has its pros and cons.
Given that you could skyrocket your sales without having to risk any upfront capital, it’s our opinion that the downsides are worth the effort.
Just make sure that if you see a big increase in business as the result of a partnership, you have other strategies in place to keep growing if your partnership efforts fizzle out.
💡 Takeaway: On the positive side, partnerships can speed up the trust building process exponentially while at the same time decreasing your Cost per Acquisition. On the downside, you have to pay out a healthy share of revenue, depend on people's fickle behavior, and there may not be enough partners for you to sustain your business long-term.
🎁 Resources:
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