Read Millionaire Fastlane
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- Feb 2, 2016
@Kak I just listed to the episode around partnerships. It's a great brief intro-level discussion around what these could look like.My apologies for the hold-ups!
Episode 26 is LIVE
The Power of Partnership!
In this episode, I address something I have been meaning to address for a long time. The Power of Partnership. We aren't talking about business partners, we are talking about strategic partnerships. What is a strategic partner? How can strategic partners help your business? Also, find out what I am pissed off about and also a little bit about Robinhood on this episode of KBRS.
While understanding the need to maintain confidentiality for your own projects, my feedback would be that people could benefit from an expanded episode that goes into more detail on concrete examples of partnerships that you've seen in the wild.
At least for me, the more specific examples I read or heard about, the more obvious these potential opportunities became.
Strategic partnerships made my career. I first joined (and then later ran) a spin-out company from a major university. The MD and PhD-holding professors we collaborated with had collectively spent many decades studying, researching, teaching, and publishing papers in a very complex field.
With one partnership agreement (licensing their name and "knowhow") we had the benefit of all their collective wisdom and a 150+ year old university brand name behind us. All it cost was a future x% of revenue. We risked nothing, and used their knowledge to elevate our line of products to a much higher level.
My second venture was a similar setup, where we licensed the data and results of a $12M, multi-year NIH funded grant from a major research institution. We were the only company in the world to have access to this dataset, protected by multiple patents and published in a variety of peer-reviewed journals, and we built an entirely new line of products around this.
Both companies sold products to hospitals, which is a long and complex process not unlike walking through a minefield.
Instead of building a large sales force, we partnered with nearly a dozen organizations who were much larger than us and already had a number of hospitals as existing customers. They'd package our product with theirs as they were already preferred vendors.
We'd split 20%, 30%, sometimes 50% of the revenue but it didn't matter as our marginal costs were next to nothing for our software.
My examples all revolve around licensing and distribution deals but there are infinite other types you can do. In my view the more examples of specific strategic partnerships you can provide, the more people will see the parallels within their own businesses.
Just my 2 cents.
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