Short Term Partnerships
Does such a thing exist? Absolutely. Short term partnerships are generally created to support a specific goal or event. A Joint Development fits into this category, when a new product is being developed, bringing 2 or more partners together for the initiative. When two small companies work together, the partnership is over once the product is completed. A Joint Development Agreement (JDA) is different from a Joint Venture, which is all over allbusiness.com. Small companies use a JV less often than a JDA because JV's are more time consuming to construct (read legal time), tend to have longer-term goals, and require the sophistication if identifying the back-end revenue payout schemes in the event the JV doesn't work-out. JD's on the other hand, tend to be more clear-cut. What's the deliverable, the timeframe, the milestones, the payment schedule etc? And typically, a JDA has one organization paying the other for product development versus a JV where both companies are putting up money, time and resources. Hence, the reason JD's are adored by inventive, small companies who partner with equal, or larger firms to bring their products to market. Use a checklist to determine if a joint development is what you are looking for.
Marketing Partnership
Another great short term partnership. A mktg partnership can be based on a timeframe, a product launch, a demographic target, or event a holiday. It can also be supported by any one of the marketing communications tools, from press, to advertising, collateral or printed materials, even a seminar series, trade show events or road show. In fact, this is such a common and lucrative area for companies that one consulting firm, Partnership Marketing Agency, focuses on creating and executing nothing but MA's for clients.
Sales Partnerships
This is all about revenue. In addition to the above targets such as timeframes, a sales partnership can include # of joint calls or meetings, # of leads shared or contributed, margins. When you think big companies, you think long term, like a 20 year agreement between AAA and an insurance provider. The rest of the small biz's reside in a timeframe a bit more accelerated for an impact.
Partnerships that aren't short term are usually licensing and distribution, for it takes 9-12 months for a product to be licensed, manufactured, pushed into the supply chain and out to the customer. 1-3 years is a standard minimum. So too are facilities, manufacturing, equity and HR partnerships.
To net it out, high-impact, revenue producing partnerships with specific target dates or other objectives tend to be short term. Multi-faceted, strategic partnerships tend to be long term. They also have a higher risk due to incur costs up front, and more resource intensive in human capital over a period of time. Seriously consider the tactical vs. strategic goals of the partnership in question and review free/for cost docs available on line before having a discussion.
Question or comment? Email me at sarahg@bmginc.com
