Partnership is the act of pairing up with another person or company who has some leverage or features to offer that you don’t have but need for profiting. Partnership as always been there , when you employed your team ,you employed them to partner with you. They came to offer you their skills and time which you can’t give your business . They partner with you for the amount of productivity you want and you in turn pay them .
Partnership looks like trade by barter kind of operation.You bring what you have to get what you need from somebody who has it.
How did Facebook reach it first $100 million mark in revenue? In 2006, Mark Zuckerberg and his team were more focused on coding Facebook than growing revenue. Mark hired Dan Rose from Jeff Bezo’s Amazon.com as VP of Business Development to help grow revenue.
Dan had learned from Jeff Bezos that one big partnership can make all the difference to revenues. He watched Myspace how the started doing big deals in a grand style of it’s new Deal Maker Owner, Rupert Murdoch.
The problem was, Facebook was growing but was not as big or as established as Myspace so its marketing partnerships were still small. Within a month of Dan joining Facebook, in August 2006 , everything changed. Myspace announced a $900 million deal with Google. Myspace had the traffic and Google had the ad network.
It was a perfect partnership where Google would manage Myspace’s ads and that deal single-handedly made Myspace profitable.
Dan Rose asked ” who has the most to lose from this deal” ? The answer was Bill Gates’ Microsoft MSN ad network, which had lost out to their arch rival Google. Dan jumped on the phone to call Microsoft and asked them if they wanted a similar deal with Facebook. Microsoft’s answer? ” Okey, we’all be down there tomorrow to iron it out.” That one deal , wrapped up 24 hours later, doubled Facebook’s revenues in 2006 from a forecast $22million to over $40million .
The year after, the Microsoft deal was worth over $100 million in revenue to Facebook. You see what partnership can do? Go out and get what you need to get your business growing .”if opportunity doesn’t knock, build a door” .
Importance of Business Partnership
1. Partnership engenders business survivability – Many platforms and businesses would have collapsed if not for the partnership deals that came along the way. The likes of Facebook , Google and Yahoo would have become history if not for partnering with the best of talents and skills. Your business survivability depends on partnership to a large extent .Some top companies partner with celebrities in order to turn their fans into their customers. They hire the best in the field to perfect their products or services. That’s partnership .This operation result in business survival and thriving .Don’t downplay partnership in your dealings because it’s the life wire of business .
2.Partnership is the gateway to business growth -Business growth is achieved by the combined effort of a team in a company. Team in terms of the whole body of people from the top to the bottom working together in a company .Every body from the CEO to the gateman , all are partnering with the company’s owner or shareholders to make the company what it should be and how it should grow. Business growth is not the result of the business itself, but the combined effort of the people behind it. An object remains in a state of rest until a force acts on it before it can gain motion.So is business.Business can’t operate itself and can’t grow itslef .Even automated businesses needs people to set it in motion. People bring concepts, systems, method and strategies to bring about growth. It is in partnering with such people and companies we experience business growth.
3.Partnership increases revenue– From the story of Facebook, we can see how their revenue doubled because of partnership. They have the social media ( traffic) while Microsoft owns the ads network.But both of them wouldn’t have experienced growth in revenue if they hadn’t combine forces. If you want your revenue to skyrocket , leverage on partnership .You can be a manufacturer but a company out there is good or expert in marketing products, when you join forces , the revenue only your company couldn’t have grown in 5 years can be reached in just a year. That’s the power of partnership.” If opportunity doesn’t knock, you had better build a door”.