partnerships Archives - AL6400 Blog

Posts Tagged ‘partnerships’

Money Being More Powerful Than The Relationship

Tuesday, February 19th, 2013 by

I was reading an interesting piece of news today as there was a company who normally bought all their products from a specific company and for the most part it was a good relationship. All of a sudden that company decided to make the products themselves which in sense killed the other business as a supplier. This caused that business to go on an uproar saying how they were essentially blindsided and thought they had a very good business relationship that is more valuable than the few extra thousand they would make as a result.

The first thing I thought was that is the reality in many cases though as when it comes to a business it’s usually all about money. Therefore, you usually should be planning not to be so dependent on one person or company to be your main source of income in this way as if they find a way to save or make more money then that relationship could change in an instant.

Spending Too Much Time With Legal Agreements

Wednesday, February 6th, 2013 by

I was looking back at this project that I am starting this year with another person and in many ways it is a little surreal that we have yet to finish all the legal agreements in the partnership. This is one of those things where you can end up spending all day trying to draft the perfect agreement to the point where you’ll never actually get to do work on the project itself.

What did help was that eventually we tried to draft it with the notion that we would try to focus on what we need at this moment with a particular level of activity. If things turn out to grow faster than expected then we both agreed that we would need to create a new one. This is one of those semi irritating scenarios as it isn’t exactly a situation where a ton of people are involved or that there is a need for a large initial capital investment from either party. It almost feels like two kids getting lawyers involved to start a lemonade stand in some ways.

However, it’s one of those things where you still want to get it right for fear that if you do something wrong now you will end up paying for it later. Too bad we don’t live in a world where people can simply trust each other’s word or that a simple handshake would do huh?

Big Enough To Get Your Own Business

Thursday, May 10th, 2012 by

This was kind of an interesting thought as I was reading about this person who was working very hard in his business as he was trying to establish himself to the point where he could join this network in hopes that it would enable him to generate more business. Of course with that deal they would have to split the revenue share with them as well. Usually in these cases too people often get scouted instead as they are obviously doing something right and the other party wants a piece of it.

So with the requirement this network had it made me think where if that guy eventually made the minimum requirements that they asked for is there a reason to join as oppose to continuing to grow as he has been? Over exaggerating, imagine it was like a hotel business where in order to join under a certain brand name they expect you to have one billion in sales and right now you are starting out at nothing. So basically you work your tail off to get a billion in sales and now you qualify to join. Like that it makes me wonder if that even makes sense where if the other party did not help you in anyway and now you are in a position where you can create your own opportunities that is semi equivalent to what they can offer you on whether or not you should just remain independent.

Taking Less To Get On The Map

Saturday, February 4th, 2012 by

I was reading about a company where the business model is to essentially gather a large group of people to produce content where they essentially act as a middle man when it comes to collecting money from various affiliate programs. While the content creator could easily just enroll into the program themselves where they would essentially be cutting the middleman out, essentially what the company does to pitch people to go through them instead is that they basically try to get all these guys under one roof where everyone s viewing each other’s work. So in a sense it’s a way for people to speed track their promotion and advertising.

I was having a small talk with a person about this and whether or not it makes sense to do that as you do lose a large percentage of revenue by going with this route. For some reason this reminded me of that Dragon’s Den show where people seek to give out a percentage of their company in exchange for funding to grow the company. Like in those cases if you are starting out with a good idea I think the decision should be largely based on what you can learn and the connections you think it would provide. Like in that example, even if you were getting 20% less as a result of going through the company as a middleman, if they offered you a professional who could help you create the material and provide you the right contacts you can argue that you are saving money in the long run.

Unless you are already established then that is kind of a different story or if you are in no immediate rush.

Generic Responses That Discourage Business Dealings

Wednesday, September 14th, 2011 by

Funny thing that I posted yesterday about the thought of trying to do business with more than one company as opposed to one large established one. Today I got a very generic message from the one company we tried and how they wanted to see different samples. Essentially, there was no real feedback in terms of what they wanted to see as oppose to just linking to generic tutorials that they have written. So with that in mind it leaves you in the dust and the feeling that since they are so big they feel like they don’t need our contribution, so to speak, at all.

We were then discussing about this and thinking how that kind of tells us how we would most likely be treated if we ever had even a simple issue such as a billing or credit one. Therefore, this just encouraged us to expand to other businesses in the industry as well as opposed to simply focusing with one organization. I guess overall it’s a good thing that it happened now before we placed all our marbles with one company.

I would think though if you are in that line of a business where you need content or materials from a large source of people where if you are manually screening something then giving personal responses goes a long way to maintaining a good relationship with people. Are so many times I can remember where large players in an industry just died off as they got too arrogant in how big they were and the thought that they didn’t need anyone else.