March 10, 2025

Strategic Partnerships & Joint Ventures: Double Your Revenue Without Doubling Your Marketing Budget

Strategic Partnerships & Joint Ventures: Double Your Revenue Without Doubling Your Marketing Budget

In this episode, we reveal how business owners can leverage strategic partnerships and joint ventures to dramatically increase revenue without spending more on marketing. This powerful strategy is one your competition likely isn't using, giving you a...

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Season 1

In this episode, we reveal how business owners can leverage strategic partnerships and joint ventures to dramatically increase revenue without spending more on marketing. This powerful strategy is one your competition likely isn't using, giving you a significant market advantage.

Powerful Business Strategies is broadcast live Mondays at 12 Noon ET Music on W4CY Radio (www.w4cy.com) part of Talk 4 Radio (www.talk4radio.com) on the Talk 4 Media Network (www.talk4media.com). Powerful Business Strategies is viewed on Talk 4 TV (www.talk4tv.com).

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WEBVTT

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The topics and opinions expressed in the following show are

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solely those of the hosts and their guests and not

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those of W FOURCY Radio. It's employees are affiliates. We

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make no recommendations or endorsements for radio show programs, services,

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or products mentioned on air or on our web. No

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liability explicit or implies shall be extended to W four

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CY Radio or it's employees are affiliates. Any questions or

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comments should be directed to those show hosts. Thank you

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for choosing W FOURCY Radio.

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Welcome to Powerful Business Strategies, where you will find out

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that everything you have ever learned about growing your business

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is wrong. Finally, a show where you'll learn the right

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way to grow your business by learning business and financial

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strategies that your competition isn't doing. And now here is

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your host resident of NeXTSTEP CFO Michael Barbarita, and joining

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Michael for today's show as an executive moderator is Chooky Obia.

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Welcome to Powerful Business Strategies. And by the way, the

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reason why you don't hear the more energized voice of

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Chucky Obo welcoming you all to the show is because

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Chokey Chucky's wife and Chuck recently welcomed their first baby

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to the world, Chelsea adeis O bio to the world.

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So congratulations to Chukey and his wife and Chuki will

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be on leave for a few more weeks so in

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the meantime, my name is Michael baber Rita from Next

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Step CFO and Next Step CFO is a fractional CFO

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and strategic implementation firm. Business owners hire us to double

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and triple their profit using business and financial strategies that

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their competition isn't doing. Our vision is to ensure overwhelmed

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business owners achieve the time, freedom, and consistent profits to

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build a legacy and the life the desire. Our mission

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is dedicated to guiding small business owners to leveraging their time,

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exploding their profits, and building a meaningful legacy. This show

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powerful business strategies in our book of the same name

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is a step toward accomplishing that vision and mission. Chucky

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and I are affiliated and both affiliated with a number

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of different organizations and Chocky currently serves as the managing

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director of business development for Better Price, a global business

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focused law firm, and in addition to that, Checky and

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I collaborate to moderate business roundtables around the country and

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around the world and document those insights as part of

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our book Powerful Business Strategies. But please note that the

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views expressed on this show are personal views based on

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our own successful experiences. So here's something I like to

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share that I've announced before that if you have a

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business problem or a business question that you'd like us

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to answer, or even a strategy that you might have

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on us to talk about or ask about, please email

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us at ask at NEXTSTEPCFO dot net. That's ask at

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NEXTSTEPCFO dot net. Doesn't matter what the business problem is,

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the question what doesn't matter, the strategy, whatever it is,

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we'll answer it for you. And there's a couple of

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things that we do ask however. One is that to

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state whether or not it's something we can put on

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the ear, because if it's confidential, of course we won't

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put it on the air. And number two, please provide

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your phone number because business problems can be complex and

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we might need more context or clarity. That email address,

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again is ask at NEXTSTEPCFO dot net. And I want

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to point out that we have had a few questions

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but they requested confidentiality, which we will always honor. So

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my inspirational minute today is in honor of last Saturday,

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which was International Women's Day, and I'd like to say

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to all the women who shape our world, we celebrate

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you not just as business leaders, entrepreneurs, and professionals, but

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as the architects of change and progress in our communities.

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You are the small business owners working late into the night,

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balancing spreadsheets while your children leap. You are the startup

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founders pitching your dreams to rooms of skeptics while you're

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armed with nothing but determination and brilliant ideas. You're the

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professionals breaking barriers and industries that once seemed completely close

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to you. I'm at the privilege of working with remarkable

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women who turns struggling businesses into thriving enterprises, who face

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seemingly impossible cash flow challenges and found creative solutions, who

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build teams and cultures that transformed industries. But your impact

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reaches far beyond balance sheets and profit margins. You mentor

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the next generation, lifting as you climb. You create opportunities

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where none existed before. You show us that leadership isn't

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about power, It's about empowerment to the women still fighting

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to be heard in boardroom, still proving your worth in

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male dominated fields, still juggling impossible demands, We see you.

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Her persistence inspires us, your courage changes us, and your

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success lifts all of us. The future of business now,

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the future of our world, depends on unleashing the full

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potential of all women, not just some, not just a

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privileged few, but every woman everywhere. Today we celebrate how

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far you've come. Tomorrow you'll continue the work of creating

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a world where every girl grows up knowing that her

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dreams have no limits, her voice matters, and her potential

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is boundless. Thank you for showing us what's possible when

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talent meets opportunities, when determination meets support, and when women lead.

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Here's to you to your victories, your struggles, your unwavering spirit,

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a future of true equality and empowerment. Keep breaking barriers,

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keep the firing expectation, keep leading the way. The world

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needs your voice now more than ever, so getting into

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today's topic. As business owners, we often feel like we're

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facing our challenges all alone. The weight of every decision,

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every risk, every investment falls squaling on our shoulders. But

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what if I told you that the most successful entrepreneurs

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aren't those who try to do everything themselves. They're the

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ones who build powerful alliances. Look around any thriving business

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ecosystem and you'll notice that success really happens in isolation.

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The businesses that grow exponentially are those that forge strategic

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connections with others who serve the same customers but from

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different angles. Today, I want to challenge you to stop

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thinking like a lone wolf entrepreneur and stop thinking like

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a strategic alliance builder, because when you do, you unlock

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growth potential. It simply isn't possible on your own. The

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partnerships you formed today could become the million dollar relationships

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that scale your business tomorrow. The question isn't whether you

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can afford to pursue strategic partnerships, it's whether you can

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afford not to. So today we're diving pretty deep into

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one of the most overlooked, yet more powerful business growth

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strategies available strategic partnerships and joint ventures. And let me

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start with the question, what if you could access your

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ideal customers through channels you don't currently own without spending

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additional money on marketing or advertising. What if you can

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leverage other businesses credibility their customer base their marketing resources

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while they benefit from yours. That's exactly what strategic partnerships

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at joint ventures allow you to do. Yet surprisingly, here

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than twenty percent of small businesses are actively using the strategy.

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Most owners are so focused on direct marketing you know,

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social media, ads, direct mail, all types of networking and

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so forth, that they completely overlook the power of strategic alliances.

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And let me share an illustration of how powerful this

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approach can be. So a home services contractor was spending

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about eight grand a month on various marketing efforts. His

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customer acquisition cost was about three hundred twenty dollars per

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new customer. But when he implemented a strategic partnership program

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with complementary businesses like real estate agents, interior designers, and

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home stagers, his new customer flow increased by sixty two

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percent without spending an additional pity on marketing, and his

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effective customer acquisition costs up to under two hundred dollars

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when you're combine all the strategic activities with the ads

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that he was running. Today, we're going to break down

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exactly how to implement this strategy in your business, regardless

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of your industry, and we'll cover first how to identify

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the perfect strategic partners which are businesses that serve the

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same customers as you, but don't compete it directly. Second,

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how to approach these potential partners with a value proposition

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that makes saying yes the obvious choice. And third, how

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does structure these partnerships for mutual benefit, ensuring their sustainability

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and profitability for everyone involved. And the beauty of strategic

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partnerships is they can work for virtually any type of business,

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whether you're a retailer or a service provider or manufacturer

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an online business. The principles we'll discuss today apply across

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the board, and what's particularly exciting about the strategy is

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that it's something your competitors are likely overlooking while they're

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fighting over the same ad space and bidding up the

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cost of Google keywords, for example. You'll be tapping into

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established channels of trust and influence that deliver prequalified, high

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quality prospects. So grab that pen and paper, because you're

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going to learn how to double your revenue without doubling

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your marketing budget through the power of strategic partnerships and

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joint ventures. And remember, if you're driving you certainly don't

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grab that Benet paper as you can listen to the

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recording again at Powerful Business Strategies dot com. So let's

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dive into the first critical component of successful strategic partnerships,

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and that's identifying the right potential partners for your business.

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The perfect strategic partner is a business that shares your

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target customer, but offers products or services that complement rather

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than compete with, your wards. And these businesses have already

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done the hard work of building trust and credibility with

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the exact people you want to reach. So let me

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start by sharing the three types of strategic partnerships that

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you can develop. One is the direct referral partnership. Now,

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this is basically the simplest form where business owners or

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business partners refer customers to each other. For example, a

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financial advisor would refer clients to a say, a state

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planning attorney, and vice versa. That's the first time direct

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referral partnership simple form. Second is the co marketing partnership.

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Here's where two or more businesses jointly market their combined

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cut to their combined customer basis. So think of a

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remodeling company and an appliance store creating a joint promotion.

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And then the third is what I call the full

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joint venture. This is the most involved partnership where businesses

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create a new offering together, combining their expertise and resources.

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For example, a business coach and a marketing agency creating

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one product which would be a COMPREHENSI let's say a

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comprehensive business growth program. So the type of partnership that

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you choose depends on your specific business goals, resources, and

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the nature of your relationship with the potential partners. But

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regardless of the type of partnership, the identification process starts

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the same way. So I want to share with you

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a step by step system for identifying your ideal strategic partners.

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We call this the partnership Matrix and it works for

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businesses of all sizes and all industries. So step one

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is list your ideal customers journey. So start up by

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mapping all the businesses that your ideal customer interacts with before, during,

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and after they do business with you. For example, if

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you runt the wedding photography business, your clients likely work

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this way, where the wedding planners, the engagement ring jewelers,

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they're before you. The venues, the caterers, the dress shops,

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the florists, they're around the same time as you. The

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photoshops or photo frame shops, album makers, interior decorators are

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after you. And each of these touch points represents a

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potential strategic partner. So step two is analyze value alignment.

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What that means is you have to evaluate which of

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these businesses shares similar values and service standards as yours.

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The best partnership the best partnerships form between businesses which

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aligned to have aligned a pro is to customer service

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and quality. So if you know, for instance, if you're

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a high end service provider, you want to partner with

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other premium businesses that share your commitment to excellence because

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they're likely have custom more customers that are that you're targeting,

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and then align with with what you're trying to achieve.

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And step three is access reciprocal value. This is crucial.

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The best partnerships offer reciprocal value. Ask yourself, what can

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I offer this partner's customers that they can't What can

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they offer my customers that I can't? How will this

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partnership benefit both businesses? That is a critical These are

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these are the three critical questions, and we'll get to

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the We'll get to the more detail a little later.

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But this is critical because a lot of partnerships fizzle,

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and there's a reason why they fizzle, and we'll get

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into that. I have a question from a listener, Michael.

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Many business owners might worry that entering these partnerships means

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giving away business or sharing their hotdened customers. How do

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you address this concern? Well, first of all, that's an

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excellent question, and from my vantage point, this feast stems

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from what I call a scarcity mindset, the belief that

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there's only so much business to go around, and in reality,

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effective partnerships they operate on an abundance mindset. You're giving

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away your customers. You're enhancing their experience by connecting them

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with trusted resources that they need anyway. And if you

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don't make these recommendations, they'll find these services elsewhere without

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your guidance and without the opportunity for specifical referrals. Partnerships

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actually strengthen your relationship with customers by increasing your value

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to them as a trusted advisor. If you remember, one

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of the components of a compelling offer is adding more

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value to your product of Servicetrategic partnership, if done correctly,

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can go a long way to adding more value to

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your products or services. And step four is prioritize your

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list after identifying potential partners, and prioritize them based on

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the size of their customer base the frequency of customer interaction.

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You know, if a customer, if one of your partners

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that you're looking to partner with, has it communicated with

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their existing base, you know for six months or a year,

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that's not good. You know, you want to make sure

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because they because they forgot about them, they're not going

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to know who they even are potentially, and then alignment

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with your brand values. Make sure that your partner has

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alignment with your brand values and can bring high value

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of referrals. So I recommend creating a simple scoring system

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where you rate each potential partner on these factors from

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one to five and then total the scores to identify

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your top prospects. So let me share a real example

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of how this works. So a landscaping company wanted to

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increase that client base without additional marketing spend. I think

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we all want to do using that partnership matrix and

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they identified potential partners including real estate agents who know

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when people move into new homes, homebuilders whose clients need

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landscaping after construction, lawn maintenance companies who don't offer who

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don't offer design services, pool installation companies whose clients offer

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need surrounding landscape around the pools, and outdoor furniture retailers

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whose clients care about outdoor living spaces. So, after prioritizing

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this list, they focused on building relationships with local real

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estate agents and homebuilders first, as they offered the highest

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volume of qualified prospects, and within six months, these partnerships

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with generating forty percent of their new business leads, all

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without spending an additional penny on advertising. Now, let's talk

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about approaching these potential partners effectively, because this is where

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most business is. Most businesses go wrong and because they

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lead with they what they want rather than the value

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they provide. So here's a four step framework for making

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a partnership proposal that gets attention and interest. Step one,

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research before reaching out. So before contacting a potential partner,

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research your business that business, their business thoroughly understand their offerings,

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the customers, understand the customers the pain points that those

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customers go through and the goals of that business and

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that product. This allows you to customize your approach and

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speak directly to their specific needs. Second, lead with value.

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Always start your conversation by explaining what's in it for them.

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How will this partnership help them grow their business? And

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how will it better help them serve their customers? How

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will it better help them solve a problem that they're facing.

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Step three, be specific, don't make vague proposals. Present specific

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ideas of how the partnership will work, complete with examples

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of successful libitation in other contexts if possible. Step four

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is to start small. Propose a simple pilot or test

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of the partnership that involves minimal risk for both parties.

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This allows you to prove the concept before asking for

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a larger commitment. And remember, one of the beautiful things

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about business, I say this all the time is you

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can always test things, Always test things. You don't have

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to go full blown into something. A physical therapist wanted

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a partner with orthopedic surgeons, and instead of simply asking

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for referrals, she created a comprehensive post surgery recovery guide

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that co granted with the surgeon practice. This added value

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for the surgeon's patients and position the therapist as part

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of the medical team, and the surgeons were happy to

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distribute this resource and referrals increased naturally as a result.

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So now let's address the different types of strategic partnerships

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in more detail, starting with the direct referral partnership. So,

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the most successful referral partnerships include these key elements. This

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is so important. Number one is a formal agreement, document

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expectations on both parties, the work that both parties have

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to do, document the referral process and any compensation structure

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back and forth. Second is a tracking system implement This

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is so critical. To implement a way to track referrals

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in both directions, to assure balance and accountability, and to

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make sure that the partnership is working and to keep

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it working. And then training ensure that both teams understand

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each other's services well enough to make appropriate referrals. And

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then regular communication. Oh my god, this is critical. If

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you don't communicate regularly, the partnership fizzles. Believe me, I'm

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sure you've I'm sure you've seen this in your own,

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your own journey. But you've got to schedule regular communication,

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schedule monthly check ins to review results and address any

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issues you know. I worked with a mortgage broker who

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implemented this exact system with real estate agents. And instead

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of the typical informal I'll send you clients if you

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send me some arrangement that you know that always fizzles

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out as I was saying, they created a structured program

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with a dedicated referral coordinator, weekly updates on client status,

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educational lunch and learn for agents, quarterly review meetings to

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assess results, and this formalized process an approach resultant in

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the two hundred percent increase in referrals within the first year.

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And by the way, the golden nugget here is structure,

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both sides doing the work and tracking the metrics. The

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only way it works. Two questions from listeners, Michael, what's

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the biggest mistake you see businesses make when trying to

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establish strategic partnerships? Well, the biggest mistake, by far is

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approaching partnerships with what's in it for me mentality rather

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than what's in it for them. Approach successful partnerships always

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stop by delivering value to your partner first. I've seen

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countless businesses fail at establishing partnerships because they lead with

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requests rather than offerings. Remember, the more focus, the more

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you focus on solving your partners problems and helping them

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achieve their goals, the more success your partnership will have.

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And stop by giving more giving value before expecting to

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receive it. The other thing, isership are not just meeting once,

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shaking hands and you have a partnership. A partnership needs

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that multiple meetings, multiple brains storming sessions, and time and

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effort commitments from both parties. It's really really important. I

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mentioned that a little earlier. That's critical, otherwise the partnership fizzles.

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And there's another question from a listener for business owners

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in highly competitive industries, how can we approach potential partners

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who might already have relationships with their competitors. Well, that's

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an important question. So when approaching partners who might have

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existing relationships with competitors, you need to differentiate your partnership offer.

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Don't just propose the same arrangement they likely have with others.

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Instead identifying gaps in those existing relationships and offer something unique.

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For example, if your competitor is fighting basic referrals you

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might offer the co branded educational content, or joint workshops

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or exclusive offers for their customers. The key is understanding

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what would make a partner consider adding or switching to you.

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Usually it's either solving a problem that their current relationship

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doesn't address or offering a high level of service or

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revenue opportunity. And my bet is that they're not tracking

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metrics and they're not keeping in close communication with each other.

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But that's just my bet. So anyway, before we continue

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this discussion, we're going to take a ninety second break. Hey,

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dear business owners, let me ask you something. Are you

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00:24:42.039 --> 00:24:45.759
tied of blending in with your competitors, frustrated with slow

355
00:24:45.839 --> 00:24:48.920
growth and slim margins? Well, I've gotten news for you.

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00:24:49.640 --> 00:24:53.119
Everything you've ever learned about growing your business is wrong.

357
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Don't worry. I'm here to let you in on a

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secret weapon. Your position of market dominance. It's what sets

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00:25:00.559 --> 00:25:04.359
you apart, makes you irreplaceable, and has customers lining up

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00:25:04.400 --> 00:25:07.519
at your door. My name is Michael barber Rita from

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00:25:07.559 --> 00:25:12.119
Next Step CFO. I know what you're thinking. Sounds great, Michael,

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00:25:12.440 --> 00:25:15.880
How do I find my position of market dominance? Well,

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00:25:15.920 --> 00:25:19.519
that's exactly why We've created our game changing impleitation program

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called Next Step to Market Dominance in just ninety days.

365
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We'll guide you step by step to a position of

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market dominance by uncovering your unique strengths that competitors can't touch.

367
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By crafting a message that resonates deeply with your ideal customer,

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00:25:34.039 --> 00:25:36.680
by building a strategy that turns you into the go

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to expert in your field. Now this is in theory.

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00:25:40.359 --> 00:25:43.200
These are battle tests and strategies that have helped businesses

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00:25:43.240 --> 00:25:47.839
like yours double triple and quadruple their revenue. Don't let

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another quarter go by struggling to standout. It's time to

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dominate your market.

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Period.

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Go to NEXTSTEPCFO dot net forward slash contact. Fill out

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00:25:58.240 --> 00:26:01.240
the form and in the message set put the word

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00:26:01.559 --> 00:26:05.279
dominate or call us at seven eight one three two

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00:26:05.359 --> 00:26:09.279
six three A two two. That's next STEPCFO dot net

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00:26:09.359 --> 00:26:12.960
forward slash Contact or call us at seven eight one

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00:26:13.000 --> 00:26:17.440
three two six three A two two. Welcome back, and

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00:26:17.519 --> 00:26:19.759
remember you can catch all the recordings of our show

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00:26:20.079 --> 00:26:23.720
at Powerful Business Strategies dot com. And now that we've

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covered how to identify potential partners and make that initial approach,

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let's dive into the second major area, structuring partnerships for

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mutual benefit and maximum results. Now, the structure of your

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partnership is critical to its success, because a poorly structured

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partnership will just fizzle out, while a well structured one

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can thrive for years, generating substantial revenue for both parties.

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So let's start with these three essential elements every partnership

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should include. Number one is clear expectations. Both parties must

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understand exactly what they're expected to provide and what they'll

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receive in return. Second is mutual accountability. Establish metrics and

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regular reviews to ensure both sides of fulfilling their commitments

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and making sure that the partnership is on track. Third

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is value balance. The partnership must create roughly equal value

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for each businesses for both businesses over time, though not

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necessarily in the same way or on the same timeline. Now,

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let's explore four proven partnership structures that you can implement

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your business. So structure number one is the simple referral exchange.

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This is the most basic structure where partners refer business

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to each other without financial compensation. So the value exchange

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00:27:46.279 --> 00:27:49.920
is the referrals themselves and For this to work effectively,

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you need a formal tracking system for referrals, not as

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I meant said, formal tracking system. Second, regular balance assessments, Third,

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clear understanding of what constitutes a qualified referral, and fourth

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a process for making these introductions. So two professionals, a

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business attorney and a CPA implemented the structure, and they

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established a shared tracking spreadsheet and created standard email templates

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for introductions to each other and met monthly to review

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their referral referral balance within a year, both receiving thirty

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percent of their new clients through this single partnership. The

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second structure, it's called the revenue share model. In this structure,

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partners pay each other a percentage of revenue generated PRIMP

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clients refer and the key components here include clear definition

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of what constitutes a referred client. That can get confusing,

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so you've got to make sure that's clear, established commission rates,

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transparent reporting system and payment schedule and methods. For example,

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a web designer established a tempt revenue share with a

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digital marketing agency, and when the designer referred clients who

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needed ongoing marketing services, they received ten percent of the

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first year's revenue. Similarly, when the agency referred clients needing

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a web website design, they received ten percent of the

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pop project fee. I got a question from the listener, Michael,

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how do businesses determine the right revenue share percentage for

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00:29:26.240 --> 00:29:29.720
their partnerships. Is there some kind of standard number that

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works across the industries? Well, not really, there's really no

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one size fits all percentage. The right revenue share depends

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on several factors. Number one of your gross profit budget,

429
00:29:41.680 --> 00:29:44.680
also the lifetime value of a customer, and the cost

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00:29:44.759 --> 00:29:49.440
it otherwise incur to acquire that cosme through traditional marketing.

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That should be incorporated in your thought process of what

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00:29:53.119 --> 00:29:57.000
type of revenue share they should be. But generally we

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see ranges from five to twenty five percent of the

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first year revenue. I recommend starting by calculating your customer

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00:30:02.119 --> 00:30:05.880
acquisition costs, because if you're spending three hundred bucks to

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00:30:06.000 --> 00:30:09.359
acquire a new customer through advertising, theoretically you could offer

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partners up to that amount per referral and still come

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out of hand. Not necessarily recommending that, but that gives

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you a guide, and the key is ensuring the arrangements

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remain profitable while providing sufficient incentive for your partner. Structure

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three This is the co created offering. This is a

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more advanced structure and involves part and is collaborating to

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create a new product or service that neither could do alone.

444
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This is really interesting. The essential elements include defined roles

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00:30:43.839 --> 00:30:52.720
and responsibilities, revenue distribution agreement, joint marketing commitments, and intellectual

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property consideration. So a business coach and a software developer

447
00:30:56.400 --> 00:31:01.160
created a business analysis tool together. The coach provided the

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00:31:01.200 --> 00:31:05.799
methodology and content while the developer built the platform. They

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split revenue fifty to fifty and marketed to both their

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customer basis. This partnership generated over three hundred grand in

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the first year, and neither would have captured that revenue individually.

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The fourth structure is what I call the embedded service model.

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In this structure, one partner's service is embedded within the

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others offering, creating a seamless customer experience. And those components

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include service level agreements, white labeling possibilities, customer communication protocols,

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and pricing and margin agreements. And here's an example. A

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commercial cleaning company partnered with several property management firms to

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become their in house cleaning service. The service was presented

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as part of the property management offering filled by the

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specialized cleaning company. This arrangement increased the cleaning company's client

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base by forty five percent while allowing the property managers

462
00:32:10.480 --> 00:32:15.640
to offer additional value without developing a new service line.

463
00:32:16.319 --> 00:32:20.720
So now let's address some of the practical considerations for

464
00:32:20.799 --> 00:32:24.839
implementing these partnerships. First is a legal framework. While many

465
00:32:24.880 --> 00:32:30.400
partnerships started formally, documenting your agreement is critical for long

466
00:32:30.480 --> 00:32:34.440
term success, and at a minimum, your agreement should come

467
00:32:34.480 --> 00:32:38.680
with the scope of the partnership, the responsibilities of each party,

468
00:32:39.319 --> 00:32:46.319
the financial arrangements, terms of termination conditions, and confidentiality provisions.

469
00:32:47.160 --> 00:32:52.319
And you don't necessarily need an expensive, complex contract. A

470
00:32:52.359 --> 00:32:55.960
simple memorandum of understanding can suffice for many of these partnerships.

471
00:32:55.960 --> 00:32:59.119
Doesn't have to get crazy, and the important thing though,

472
00:32:59.240 --> 00:33:04.319
is to have in writing to prevent any misunderstandings later on. Second,

473
00:33:04.799 --> 00:33:12.079
the communications system establish regular check ins to maintained partnership momentum.

474
00:33:12.279 --> 00:33:18.160
These might include weekly email updates, this is, monthly performance reviews,

475
00:33:18.200 --> 00:33:22.880
some quarterly strategy sessions, and annual partnership evaluations. This is

476
00:33:22.920 --> 00:33:26.680
critical for keeping the partnership communication going and I found

477
00:33:26.720 --> 00:33:30.160
that partnerships that incorporate this regular communication are at least

478
00:33:30.200 --> 00:33:33.599
three times more likely to succeed in the long term

479
00:33:33.680 --> 00:33:38.559
than those who don't that simple. Third is a training

480
00:33:38.559 --> 00:33:44.759
component for partnerships. To generate maximum results, each partner and

481
00:33:44.839 --> 00:33:49.880
each partner's team needs to understand the other business well

482
00:33:50.000 --> 00:33:54.880
enough to identify opportunities and make the appropriate referrals. So

483
00:33:54.920 --> 00:33:58.119
effective cross training might include an exchange of service and

484
00:33:58.160 --> 00:34:05.400
product information, job shadowing or observation, joint customer journey mapping,

485
00:34:06.559 --> 00:34:12.800
and regular knowledge sharing sessions. And I recall a financial

486
00:34:12.800 --> 00:34:16.679
advisor who created a partner resource center. It was a

487
00:34:16.719 --> 00:34:20.320
password protected section of their website with videos explaining their

488
00:34:20.360 --> 00:34:27.199
services along with client profiles and referral processes. And this

489
00:34:27.960 --> 00:34:32.360
resource made it really easy for partners to understand exactly

490
00:34:32.400 --> 00:34:37.400
which clients were ideal referrals, resulting in higher quality leads.

491
00:34:38.079 --> 00:34:43.920
And fourth is the marketing support, providing partners with ready

492
00:34:43.960 --> 00:34:48.960
to use marketing materials, significantly increasing referral activity. And so

493
00:34:49.119 --> 00:34:52.599
consider creating a co branded brochure or some type of

494
00:34:53.079 --> 00:34:59.960
website digital asset. Consider creating email templates for introductions, social

495
00:35:00.159 --> 00:35:04.119
media content for sharing, and joint case studies or success stories.

496
00:35:04.960 --> 00:35:09.719
A whole remodeling company contractor that we worked with created

497
00:35:09.800 --> 00:35:13.440
professional before and after portfolio books for their real estate

498
00:35:13.480 --> 00:35:16.400
agent partners and these books sat on the agent's desks

499
00:35:16.480 --> 00:35:22.039
during client meetings, naturally prompting conversations about renovation possibilities and

500
00:35:22.119 --> 00:35:28.119
generating a stream of referrals. So let's also address how

501
00:35:28.119 --> 00:35:32.440
to measure partner partnership success because the metrics you track

502
00:35:32.559 --> 00:35:36.519
should include the number of referrals received and given, conversion

503
00:35:36.599 --> 00:35:42.360
rate of referred prospects, revenue generated from partnerships from the partnerships,

504
00:35:42.920 --> 00:35:48.159
lifetime value of referred customers, and cost savings compared to

505
00:35:48.239 --> 00:35:52.960
traditional marketing. And I recommend creating just a simple dashboard

506
00:35:52.960 --> 00:35:56.280
to track these metrics monthly and then reviewing them quarterly

507
00:35:56.320 --> 00:36:01.480
with your partner to identify any improvement opportunities. So a

508
00:36:01.519 --> 00:36:09.239
couple of questions here from listeners, Michael, partnership sometimes starts

509
00:36:09.280 --> 00:36:13.280
strong with fizzle over time. Absolutely, what strategies have you

510
00:36:13.360 --> 00:36:17.960
found most effective from maintaining the partnership momentum long term? Well,

511
00:36:18.480 --> 00:36:25.239
that's a wonderful question. Partnership enthusiasm naturally wanes without intentional nurturing,

512
00:36:26.000 --> 00:36:29.000
so I recommend implementing what I call the triple R system,

513
00:36:29.039 --> 00:36:34.519
which is results, recognition, and reinvention. First, regularly share results

514
00:36:34.599 --> 00:36:39.880
concrete numbers showing the partnership's impact for both parties. Second,

515
00:36:41.039 --> 00:36:46.360
provide recognition, Acknowledge your partner's contributions both privately and publicly

516
00:36:46.400 --> 00:36:52.239
when appropriate. And finally, practice reinvention. Every six to twelve months,

517
00:36:52.239 --> 00:36:56.639
brainstorm new ways to expand or enhance the partnership that

518
00:36:56.840 --> 00:37:01.199
keep things fresh and exciting. And additionally, it builds the

519
00:37:01.239 --> 00:37:05.280
personal relationship beyond business and helps tremendously. Some of the

520
00:37:05.360 --> 00:37:10.239
most successful partnerships include quarterly dinners where business discussion is

521
00:37:10.280 --> 00:37:15.880
intentionally minimized in favor of building a relationship. So here's

522
00:37:15.920 --> 00:37:19.800
another question from a listener, What about when a partnership

523
00:37:19.840 --> 00:37:22.679
isn't working is expected? How should business owners approach that

524
00:37:22.760 --> 00:37:27.280
difficult conversation? Well, that's a situation every business owner will face.

525
00:37:27.320 --> 00:37:30.320
Trust me, Not every partnership works out. So I recommend

526
00:37:30.960 --> 00:37:39.280
addressing partnership challenges to what I call a reset reset conversation. First,

527
00:37:39.480 --> 00:37:45.119
schedule a dedicated meeting, don't try to address issues in passing. Second,

528
00:37:45.320 --> 00:37:49.119
begin with appreciation for what has worked in the partnership

529
00:37:50.360 --> 00:37:54.800
because there's usually something that works. And third, use specific

530
00:37:56.079 --> 00:37:59.519
data rather than generalizations to discuss what isn't working. That's

531
00:37:59.559 --> 00:38:03.679
why we track things and finally, proposed solutions. That's something

532
00:38:03.679 --> 00:38:08.280
I've meant forgotten. Proposed solutions rather than just highlighting problems.

533
00:38:08.280 --> 00:38:11.000
For example, instead of saying we're not getting enough referrals,

534
00:38:11.039 --> 00:38:14.039
say we've received three referrals in the past quarter versus

535
00:38:14.039 --> 00:38:21.559
our goal of ten. So you know, we could we could?

536
00:38:21.639 --> 00:38:25.360
We could we discuss that what might be preventing more

537
00:38:25.400 --> 00:38:29.119
referrals and how we might address those barriers. So if

538
00:38:29.159 --> 00:38:32.599
free set attempts don't work, have a clear excess strategy

539
00:38:33.320 --> 00:38:36.960
that allows both parties to maintain dignity and potentially work

540
00:38:37.000 --> 00:38:42.960
together in the future. So before I continue to this discussion,

541
00:38:43.159 --> 00:38:46.119
we're going to take a ninety second break. Hey, their

542
00:38:46.159 --> 00:38:48.840
business owners, let me ask you something. Are you tied

543
00:38:48.880 --> 00:38:52.760
of blending in with your competitors? Frustrated with slow growth

544
00:38:52.800 --> 00:38:53.840
and slim margins?

545
00:38:54.079 --> 00:38:55.400
Well, I've gotten news for you.

546
00:38:56.199 --> 00:38:59.719
Everything you've ever learned about growing your business is wrong.

547
00:39:00.559 --> 00:39:01.199
Don't worry.

548
00:39:01.639 --> 00:39:03.559
I'm here to let you in on a secret weapon.

549
00:39:04.000 --> 00:39:07.559
Your position of market dominance. It's what sets you apart,

550
00:39:07.719 --> 00:39:11.519
makes you irreplaceable and has customers lining up at your door.

551
00:39:12.519 --> 00:39:13.079
My name is.

552
00:39:13.039 --> 00:39:17.000
Michael Barbarrita from Next Step CFO. I know what you're thinking.

553
00:39:17.679 --> 00:39:20.599
Sounds great, Michael. How do I find my position of

554
00:39:20.599 --> 00:39:24.280
market dominance? Well, that's exactly why we've created our game

555
00:39:24.400 --> 00:39:29.039
changing impleitation program called Next Step to Market Dominance. In

556
00:39:29.159 --> 00:39:31.480
just ninety days, we'll guide you step by step to

557
00:39:31.519 --> 00:39:35.119
a position of market dominance by uncovering your unique strengths

558
00:39:35.119 --> 00:39:38.760
that competitors can't touch. By crafting a message that resonates

559
00:39:38.760 --> 00:39:42.000
deeply with your ideal customer, by building a strategy that

560
00:39:42.079 --> 00:39:43.400
turns you into the go.

561
00:39:43.320 --> 00:39:44.559
To expert in your field.

562
00:39:45.239 --> 00:39:48.719
Now this is in theory. These are battle tests strategies

563
00:39:48.760 --> 00:39:52.239
that have helped businesses like yours double, triple, and quadruple

564
00:39:52.280 --> 00:39:56.800
their revenue. Don't let another quarter go by struggling to standout.

565
00:39:56.880 --> 00:40:01.880
It's time to dominate your market period. Go to NEXTSTEPCFO

566
00:40:02.000 --> 00:40:05.639
dot net forward slash contact. Fill out the form and

567
00:40:05.719 --> 00:40:09.360
in the message section put the word dominate or call

568
00:40:09.440 --> 00:40:12.840
us at seven eight one three two six three A

569
00:40:12.960 --> 00:40:17.119
two two. That's next STEPCFO dot net forward slash contact

570
00:40:17.480 --> 00:40:20.400
or call us at seven eight one three two six

571
00:40:20.800 --> 00:40:24.920
three A two two. Welcome back to powerful business strategies.

572
00:40:25.280 --> 00:40:29.320
So now that we've covered identifying partners and structuring partnerships,

573
00:40:29.360 --> 00:40:33.519
let's focus on the third critical component, that's implementing successful

574
00:40:33.599 --> 00:40:39.320
joint ventures that create substantial new revenue trades. Joint ventures

575
00:40:39.400 --> 00:40:43.679
take partnerships to the next level by creating new offerings, events,

576
00:40:43.960 --> 00:40:49.119
or marketing initiatives that neither business could or would create

577
00:40:49.159 --> 00:40:51.440
on their own, and they represent one of the most

578
00:40:51.480 --> 00:40:54.760
powerful forms of business collaboration when done correctly. So let

579
00:40:54.760 --> 00:40:58.360
me start by clarifying the difference between a simple partnership

580
00:40:58.400 --> 00:41:02.519
and a true joint venture. So a partnership typically involves

581
00:41:02.639 --> 00:41:06.880
sharing existing resources or customers, while a joint venture involves

582
00:41:06.880 --> 00:41:11.719
creating something new together. Joint ventures can create extraordinary results

583
00:41:11.800 --> 00:41:16.039
because they combine the strengths, the audiences, and resources of

584
00:41:16.159 --> 00:41:20.000
multiple businesses towards a common goal. And let's explore the

585
00:41:20.199 --> 00:41:23.880
four most effective types of joint ventures for small and

586
00:41:23.960 --> 00:41:28.880
medium sized businesses. So Type one is the joint educational event.

587
00:41:28.960 --> 00:41:33.000
This involves two more businesses collaborating to create workshops, to

588
00:41:33.039 --> 00:41:36.840
create seminars or even webinars that provide value to their

589
00:41:36.880 --> 00:41:39.840
combined audience. For example, a mortgage broken a real estate

590
00:41:39.880 --> 00:41:42.960
attorney could host a first time home buyer workshop, with

591
00:41:43.079 --> 00:41:47.360
each presenting on their area of expertise, and both would

592
00:41:47.360 --> 00:41:52.199
benefit from the shared marketing costs. They would benefit access

593
00:41:52.199 --> 00:41:56.079
to each other's audience and enhance credibility through association and

594
00:41:56.599 --> 00:42:01.559
natural opportunity to showcase expertise. I worked with a financial

595
00:42:01.559 --> 00:42:04.880
advisor partnered with an a state attorney and insurance specialists

596
00:42:04.880 --> 00:42:09.079
to create a retirement planning seminar series. So by combining

597
00:42:09.079 --> 00:42:11.719
their expertise and marketing efforts, they attracted three or four

598
00:42:11.760 --> 00:42:15.400
times more attendees then their solo events had previously drawn.

599
00:42:15.960 --> 00:42:20.239
More importantly, their conversion rates nearly doubled because prospects saw

600
00:42:21.360 --> 00:42:24.800
saw them as a comprehensive solution rather than just isolated

601
00:42:24.840 --> 00:42:29.320
service providers. Type two is the co created product or service,

602
00:42:29.960 --> 00:42:33.800
and this involves partners combining their expertise to create an

603
00:42:33.880 --> 00:42:37.079
offering that neither could provide a loan and the key

604
00:42:37.159 --> 00:42:39.800
elements for this for success for this type of a

605
00:42:39.840 --> 00:42:45.559
partnership is clear definition of what each party contributes, detailed

606
00:42:45.760 --> 00:42:52.599
revenue sharing agreements, joint marketing commitments, and defining customer service responsibilities.

607
00:42:54.239 --> 00:42:58.880
And here's a question from a listener, these arrangements do

608
00:42:59.039 --> 00:43:02.360
involve more complete the key to managing the risk. I'm

609
00:43:02.400 --> 00:43:07.719
sorry the question is, Michael. Co created products seem to

610
00:43:07.800 --> 00:43:12.000
involve a lot more complexity and risk than simple partnerships.

611
00:43:12.599 --> 00:43:16.599
How can business owners mitigate that risk while still pursuing

612
00:43:16.599 --> 00:43:20.880
other opportunities. Well, one way is to start with a

613
00:43:21.000 --> 00:43:24.679
very small pilot or test version of your created offering

614
00:43:25.000 --> 00:43:28.400
once again testing. I'll say this over and over again, So,

615
00:43:28.519 --> 00:43:31.920
for example, before developing a full fledged program together, test

616
00:43:31.960 --> 00:43:35.559
the concept with a single workshop or a limited release

617
00:43:35.960 --> 00:43:38.679
to a small customer segment. And this allows you to

618
00:43:38.760 --> 00:43:40.920
validate the concept, to work out all the kinks because

619
00:43:40.920 --> 00:43:45.199
there'll be some, and build trust before making larger investments.

620
00:43:45.599 --> 00:43:48.960
And I also recommend creating clear exit provisions in your agreement,

621
00:43:50.199 --> 00:43:54.320
conditions under which either party can withdraw and how intellectual

622
00:43:54.440 --> 00:43:58.039
property and customer relationships could be handled in that scenario.

623
00:43:58.719 --> 00:44:02.239
So a great example of a successful co created offering

624
00:44:03.199 --> 00:44:05.840
comes from a business coach and a software developer who

625
00:44:06.000 --> 00:44:10.039
collaborated to create business analysis and planning tools, and the

626
00:44:10.079 --> 00:44:13.039
coach provided the methodology and content, while the developer built

627
00:44:13.039 --> 00:44:16.000
the platform, and they started with a basic version that

628
00:44:16.119 --> 00:44:22.599
offered about just twenty clients, refined based on feedback, and

629
00:44:22.639 --> 00:44:25.920
then expanded to a full market release. And neither could

630
00:44:25.920 --> 00:44:28.199
have created this product alone and I mentioned this example

631
00:44:28.199 --> 00:44:31.440
a little earlier in less detail, but together they built

632
00:44:31.440 --> 00:44:33.400
a revenue stream that added over three hundred grand in

633
00:44:33.440 --> 00:44:36.400
each of their businesses in the first year. And the

634
00:44:36.440 --> 00:44:40.000
third type is the joint marketing campaign. This involves multiple

635
00:44:40.039 --> 00:44:44.960
businesses pooling their marketing resources to create a campaign which

636
00:44:45.559 --> 00:44:48.960
with greater reach and impact than they could achieve individually,

637
00:44:49.440 --> 00:44:54.239
and successful joint venture campaigns include aligned timing and messaging,

638
00:44:55.239 --> 00:44:58.679
shared cost and resources, a clip called to action for

639
00:44:58.760 --> 00:45:05.159
each business, and coordinated follow up process. I call a

640
00:45:05.199 --> 00:45:08.960
group of complementary local businesses a high end restaurant, a

641
00:45:09.039 --> 00:45:13.280
luxury spa, and a boutique hotel who created a local

642
00:45:13.400 --> 00:45:17.440
luxury weekend package, and by marketing together, they reduced their

643
00:45:17.480 --> 00:45:21.440
individual marketing costs by sixty percent, They reached audiences they

644
00:45:21.440 --> 00:45:25.039
couldn't access individually, and they created a compelling offer that

645
00:45:25.079 --> 00:45:29.760
none could provide a loan. This created a premium position

646
00:45:29.800 --> 00:45:34.920
in their market and really worked extremely well. Type four

647
00:45:35.840 --> 00:45:39.800
was the bundles of offering. This involves packaging complementary products

648
00:45:39.880 --> 00:45:44.480
or services from multiple businesses into a single, more valuable offering,

649
00:45:44.960 --> 00:45:49.679
and the keys to successful bundling include compatible service product

650
00:45:49.719 --> 00:45:55.400
quality levels also include coordinated delivery or fulfillment to investigate,

651
00:45:55.880 --> 00:46:01.519
and unified customer experience with clear financial arrangements. In this

652
00:46:01.559 --> 00:46:07.280
particular case, and winning photographer and a videographer created a

653
00:46:07.320 --> 00:46:12.000
bundled package that included both services at prices that were

654
00:46:12.039 --> 00:46:15.559
slightly lower than booking them separately, and this arrangement increased

655
00:46:15.599 --> 00:46:19.519
their average transaction value. It reduced their individual marketing costs,

656
00:46:19.559 --> 00:46:24.440
like all these partnerships do. It also simplified decision process

657
00:46:24.440 --> 00:46:28.880
for clients and created a competitive advantage over solo providers.

658
00:46:30.119 --> 00:46:33.039
So let's take a look. You know, I'm getting two

659
00:46:33.079 --> 00:46:37.280
more questions that I certainly want to address. One is

660
00:46:37.639 --> 00:46:44.199
with joint ventures requiring significant coordination between separate businesses, what

661
00:46:44.440 --> 00:46:48.599
systems have you found most effective for managing these complex relationships?

662
00:46:48.599 --> 00:46:54.599
But the most successful joint ventures implement what I call

663
00:46:54.960 --> 00:47:00.519
unified operations systems, and this typically includes three critical components. First,

664
00:47:00.960 --> 00:47:06.760
a shared project management platform tools like asanatrellooor Monday Dot

665
00:47:06.800 --> 00:47:12.280
com where all parties can track progress, responsibilities, and deadlines.

666
00:47:12.559 --> 00:47:17.719
And second, regular structured meetings with clear agendas, typically weekly

667
00:47:17.719 --> 00:47:21.440
meetings during development and launch phases than a bi week

668
00:47:21.599 --> 00:47:26.480
weekly meeting or monthly meeting for ongoing operations. And third,

669
00:47:26.599 --> 00:47:30.280
a designated venture manager from each organization who serves as

670
00:47:30.280 --> 00:47:33.880
the primary point of contact and is empowered to make

671
00:47:33.960 --> 00:47:38.000
day to day decisions without constant committee approvals. So this

672
00:47:38.079 --> 00:47:43.639
combination of technology, communication, rhythm, and clear authority prevents the

673
00:47:43.679 --> 00:47:47.360
coordination challenges that often derail these types of joint ventures.

674
00:47:48.599 --> 00:47:52.320
So second question is for business owners concerned about potential

675
00:47:52.920 --> 00:47:59.519
competitive issues or intellectual property protection, what safeguards do you

676
00:47:59.559 --> 00:48:05.079
recommend when entering joint ventures? So, well, that's a critical consideration.

677
00:48:05.280 --> 00:48:08.960
I recommend a three pot protection strategy. First, start with

678
00:48:09.000 --> 00:48:15.159
a mutual nondisclosure agreement before detailed discussions begin. Second, include

679
00:48:15.159 --> 00:48:19.239
specific intellectual property clauses in your joint venture agreement that

680
00:48:19.400 --> 00:48:23.400
clearly delineate the ip that each party brings to the venture,

681
00:48:25.280 --> 00:48:28.360
what's created together and who owns what if the venture

682
00:48:28.400 --> 00:48:32.559
does end. And then, finally, most importantly, be strategic about

683
00:48:32.599 --> 00:48:35.360
what you share. You can create value joint ventures without

684
00:48:35.400 --> 00:48:40.760
revealing your core proprietary systems or client information. And also

685
00:48:40.920 --> 00:48:44.280
consider the concentric circles approach. Start with the modest collaboration

686
00:48:44.400 --> 00:48:47.960
and outer areas of your business, and then gradually move

687
00:48:48.079 --> 00:48:52.320
toward more central aspects as trust develops. Remember, the goal

688
00:48:52.440 --> 00:48:55.639
isn't to eliminate all risk, but to manage it appropriately

689
00:48:55.880 --> 00:48:59.960
against the potential rewards. We got a ninety second break.

690
00:49:00.280 --> 00:49:04.760
Be right back. Hey there, business owners, let me ask

691
00:49:04.800 --> 00:49:08.280
you something. Are you tied of blending in with your competitors?

692
00:49:08.599 --> 00:49:11.239
Frustrated with slow growth and slim margins?

693
00:49:11.519 --> 00:49:12.960
Well, I've got news for you.

694
00:49:13.639 --> 00:49:17.119
Everything you've ever learned about growing your business is wrong.

695
00:49:18.000 --> 00:49:20.159
Don't worry. I'm here to let you in on.

696
00:49:20.159 --> 00:49:24.199
A secret weapon, your position of market dominance. It's what

697
00:49:24.320 --> 00:49:28.239
sets you apart, makes you irreplaceable, and has customers lining

698
00:49:28.320 --> 00:49:31.519
up at your door. My name is Michael Barberrita from

699
00:49:31.559 --> 00:49:36.159
Next Step CFO. I know what you're thinking. Sounds great, Michael.

700
00:49:36.480 --> 00:49:39.920
How do I find my position of market dominance? Well,

701
00:49:39.920 --> 00:49:43.599
that's exactly why we've created our game changing implementation program

702
00:49:43.719 --> 00:49:47.480
called Next Step to Market Dominance. In just ninety days,

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we'll guide you step by step to a position of

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market dominance by uncovering your unique strengths that competitors can't touch.

705
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By crafting a message that resonates deeply with your ideal customer,

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00:49:58.079 --> 00:50:00.719
by building a strategy that turns you into the go

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to expert in your field. Now this is in theory.

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These are battle tests and strategies that have helped businesses

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like you as double, triple, and quadruple their revenue. Don't

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let another quarter go by struggling to standout. It's time

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to dominate your market period. Go to NEXTSTEPCFO dot net,

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forward slash contact. Fill out the form and in the

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message section put the word dominate or call us at

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seven eight one three two six three A two two.

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That's next STEPCFO dot net, forward slash Contact or call

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us at seven eight one three two six three A

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00:50:38.719 --> 00:50:42.719
two two. Welcome back to powerful business strategies. And as

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00:50:42.760 --> 00:50:45.039
I leave you for today's show, I encourage you to

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00:50:45.079 --> 00:50:48.199
take three specific actions. But one is identify your top

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00:50:48.320 --> 00:50:53.360
five potential strategic partners using the Partnership matrix. We discussed,

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00:50:53.880 --> 00:50:58.199
develop a specific value proposition for your number one prospect

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00:50:58.480 --> 00:51:02.079
and schedule conversation with that prospect in the next two weeks.

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Remember in business, who you know and who you partner

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00:51:06.519 --> 00:51:09.119
with can be just as important as what you know

725
00:51:09.519 --> 00:51:12.760
and what you offer. Strategic partnerships just a nice to

726
00:51:12.800 --> 00:51:17.239
have business strategy. They're a sential approach for maximizing growth

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00:51:17.679 --> 00:51:21.599
while minimizing marketing costs. To get a copy of your

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of the book Powerful Business Strategy, simply go to our

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website NEXTSTEPCFO dot net. It's totally complementary and until next

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00:51:30.000 --> 00:51:33.719
Monday at noon Eastern time for Chicky Obio. My name

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00:51:33.760 --> 00:51:37.679
is Michael Barberita, and remember, don't keep doing what your

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00:51:37.719 --> 00:51:39.480
competition is doing.

733
00:51:41.840 --> 00:51:44.920
You have been listening to powerful business strategies finding out

734
00:51:44.960 --> 00:51:48.599
that everything you ever learned about growing your business is wrong.

735
00:51:48.920 --> 00:51:52.079
Tune in next week and every week at noon Eastern

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00:51:52.159 --> 00:51:55.639
time on W four CY Radio with your host Michael

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00:51:55.639 --> 00:52:00.400
Barbarita of Next Step CFO and moderator Jugio Yup