As Much As Possible Create Strategic Alliance – Team Up Your Resources

It’s hard to go it alone. Teaming up with the right partners or creating strategic alliances
can stream line the process, get you there faster, and can help save both of your resources, and create a substantial income for the partners. How does it work? First you have to find compatible partners that may have similar things to offer but not completely the same as to be your competition. Then you have to create an event or marketing strategy that creates substantial benefits for your customers conjunctively.

For an example a dog groomer might form an alliance with a veterinarian’s office to offer the service at the Vet’s place. Then the Vet can offer that service to his or her clients and customers get added value. The marketing might include a flyer from the groomer going out with the veterinarian mailing. The bundling up saves both partners money. Then the dog groomer gives referrals to the Vet.

Another example of a good team up is using partners in an internet promotion that will promote your products. You pay a good percentage to them for that alliance. Now instead of doing all the work yourself and reaching only the people you could with your list (let’s say 300) you are using other partners with their lists and now these ten or more partners suddenly gets you in front of 60,000 people. If you can put together more partners like that potentially you have the opportunity to reach one hundred thousand to a million people or more at one time. That’s leverage!! It’s a win-win situation for everyone. A strategy that will work over and over again. With those same alliances in place you could cross promote each other’s products for equal benefits or create coordinated events to reach a large audience.

Another way of working strategic partnerships is to offer discounts to your partner’s clients and offer tie-ins, or co-registration of services. For an example a woman is signing up for brides’ expo and at the same time she can also get information about custom bride’s gowns and catering halls in her area. Now one source collects her contact information and distributes her information to the strategic partners in place that can best serve her needs. When her contact information is shared each partner will market to her about their own unique services for which she requested more information. Everyone wins. In this instant this new client came as a result of its alliances. All the partners will be able to get more clients by working the alliances in this way because there is no competition among partners.

Strategic partners or alliances can also give you credibility. When your business is mentioned in the same content with a bigger partner it is understood to potential clients like a recommendation which in a many ways it is. Finding and putting together the right strategic partnerships or alliances offers fantastic shortcuts and can launch your sales to extraordinary heights. As much as possible team up your resources and form great alliances. Share the burden, and the success.

Strategic Alliances – What, Why, How, Etc

However, in this new Internet age, strategic alliances between companies that are direct competitors are taking place. In such cases, one company agrees to buy services from the 2nd company to resell at a higher cost to company one’s end customers. In such a case, a company located in a low cost country (like India, China, etc.) or that has offices in a low cost country, forms an alliance with a company located in a high cost country (like the US, UK, etc).

In such cases, both companies are selling the same services. But they are bound by an agreement that prevents the company selling the services (from a low cost country) to directly interact with clients of the company buying the services (in a high cost country like the US).

The company that is buying the services also has the added benefit of getting diversity in skill set and flexibility to add or reduce resources without the disadvantages associated with hiring and firing people to accommodate peaks and valleys in business.

Why form Strategic Alliances?

Regardless of the type of strategic alliances that are formed, there are many advantages to both companies involved in an alliance. Strategic alliances allow businesses to gain a competitive edge by leveraging partner resources such as marketing, technology, capital investments, and people. It also benefits both companies by allowing them to brainstorm ideas, leverage skills, and leverage connections to take the business to the next level. By forming strategic alliances, companies can add complementary skills to diversify offerings without the added cost of finding talent with new skills, ongoing training, and the need to maintain employee overhead costs.

All these allow companies to boost productivity while saving time and effort due to the ready set of skills that are available at their disposal. The company selling the services can benefit from the alliance due to the fact that it opens the door for ongoing work thus allowing them to focus on employee development and retention.

Both companies benefit from having strategic discussions on what to focus on next, from brainstorming ideas together, conducting joint marketing, and in general from using resources that are readily available through the alliance.

The internet has created a global marketplace but it has also brought more competition that if the market place had been geographically limiting. Therefore, companies need to be more and more creative in terms of how to grow and gain an edge over their competition. Strategic alliances help them do just that.

How to form a successful Strategic Alliance?

From experience I’ll tell you that it’s tough entering into a strategic alliance. Generally I’ve found that companies that lack a strategic plan and vision don’t necessarily get the concept of what a strategic alliance means. They also perceive the requesting company as a threat and in general shy away from even discussing

Sometimes, you may proceed along fine until you begin to discuss revenue sharing or commission structures. This derails a nicely progressing relationship when both companies cannot agree to the commercial arrangement proposed by one or the other.

Therefore, before approaching a strategic alliance, here are some steps that may help you:

Ø Define goals and objectives for both companies

Ø Define success measures – that means that both companies should list what they would consider a successful outcome from that strategic alliance

Ø Clarify what each company will do and clearly document roles and responsibilities

Ø Define or create an operating agreement to plan what needs to be done, by whom, by when, etc.

Ø Document commercial agreement related to individual costs, revenue sharing, commission structures, operational overruns, marketing costs, etc.

Ø Define exit clauses in the event that the strategic alliance just doesn’t work out for any reason

Ø Make sure you never operate on just a verbal agreement, document everything to protect both parties

Ø Lastly, protect intellectual property because lets face it, we’re dealing with human beings and although a relationship can begin with trust, it takes no time for that trust to change into betrayal.

In summary, we know that most large companies have understood and successfully created strategic alliances. What amazes me is that small companies and mid sized companies are still moons behind embracing this philosophy and thus are ill-equipped to sustain growth in the face of rising competition.

Jenesys Group, LLC has formed many successful strategic alliances with companies across the globe in the UK, Central America, US, Canada, and Mexico. You may see our services at [http://www.jenesysgroup.com/services.php]

A Review of the Lightyear Alliance Income Opportunity

Digital phone service, digital cable, cell phones, high-definition television…thirty years ago all of this were still ideas one saw while watching the ever popular ‘Star Trek’ in all its recreations. Now, it is all possible and growing by leaps and bounds into newer and more exciting technology.

Lightyear Alliance, the direct sales portion of Lightyear Network Solutions, was launched in 2003. It is the parent’s company fastest growing division and quickly becoming one of the largest providers of digital phone and broadband internet to residential, small office and home office customers. The company believes in philanthropy and is affiliated with USA Harvest, an organization dedicated to feeding the hungry across the United States.

The leadership team has numerous total years in the phone and Internet industry and includes a representative who is working on expanding the company to reach Spanish speaking citizens. The company has also been featured in a variety of articles from magazines such as USA Today, the Economist, and Red Herring, all of which can be found in their news room section.

The company offers consumers digital broadband phone services and broadband internet. They offer local and long distance packages as well as various options such as 3-way calling, call waiting, call forwarding and other commonly found services. They also offer wireless service from major U.S. carriers and unlimited calling to the United States and Canada.

Cost for the services they offer? With the exception of the digital phone service (the cost of which is actually found under products and services on the opportunities page), everything else is unknown. The website requests that the customer contact them for more information.

Lightyear Alliance sells their products via independent sales representatives. These representatives are paid on a weekly basis on the items they direct sell and are given a program called MyLightYear, an internet marketing tool, to use for their business. More information on the sales representative opportunities can be found by clicking a link on the home page of the website.

This is an aggressive sales structure and of course, the more people a representative has working under them, the more they will make in both commissions and bonuses. The .PDF presentation found on the page goes into more details. There is a demo of the MyLightYear system also available from the opportunities page for the prospective salesperson to view. There is no information available on what type of training is given to the sales representative.

Review of the website leaves an interesting question for any prospective customer or sales representative: are the services they offer comparable to services that can be purchased elsewhere? Without a good deal of cost comparison, it is hard to tell whether or not this business is truly worth getting into.

There is no information about what a sales representative has to pay in order to get started. The services the company offers may or may not be worth switching to. Doing the homework and actually speaking to someone who is involved as a representative and as a customer would be the best course of action before signing up to promote these products.