Forming Strategic Alliances to Boost Your Business!

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by Andrew Wood

In my latest audio program, Conquering Your Market with a One Man Army I detail hundreds of ways that a small business can Maximize its marketing efforts. Of all the strategies included perhaps none is more powerful than the concept of forming strategic alliances with other businesses. The purpose of such alliances is to tap into new clients and drive them to each others business. To form new lines of low cost distribution for your sales information and to tap into each others unique expertise. This can be done at many different levels and the more alliances you make the better it will work.

Strategic alliances as a way to get your message out cheaply!

I have a strategic alliance with Macho Products, they supply my karate schools with equipment and distribute my sales literature to all of their clients for free. In return I promote their products and include their logo as a sponsor on events I run in the industry. I have the same type of arrangement with Markel Insurance who mail information on my seminars to over 10,000 karate schools in return for sponsorship of the events and a free booth at my annual trade show. Just the distribution of sales information alone to their customer base of karate business owners saves me thousands of dollars a year in postage.

On a simple level I used to trade business card ads with as many other businesses I could find who published a monthly newsletter. In this way all the little boys whose sisters used to attend the Irvine Dance Academy got a coupon for a FREE trial karate lesson. While the parents of my karate students got a free coupon inviting them to try a dance class.

Strategic alliances as a way to trade expertise

I have just formed a strategic alliance with Hitter communications, they are Internet experts, I am not. I have a strategic alliance with Martial Arts World Magazine. I have provided them with mailing lists and my professional expertise in the martial arts business in return for SIX free pages of advertising in each issue. Next month I will travel to Washington for a free consulting visit to a company that publishes a national directory of speakers. In return for my expertise they have agreed to sell ads for my catalog of business products as an add on sale while selling ads in their publication. That means I get telemarketing help for free, while they get my expertise and a way to tack a 20% commission on the end of every sale they make! Talk about win, win!

Strategic alliances as a way to drive traffic to each others business.

Big companies recognized a long time ago the value of strategic alliances to drive customers to each other. Delta suggests that I sleep in a Hilton hotel in all it's literature and recommends that I rent my car from Avis. American Express sends me free membership in the Hertz and National car rental clubs and free membership specific airline clubs if I fly that airline.

Driving traffic to your doors with strategic alliances is not just the realm of big business. Nightclubs and restaurants often form strategic alliances with cab drivers to bring business right to their doors. A local hair salon was one of my best sources of leads for my first karate school. While an alliance with a well liked bartender can be a wonderful source of leads for just about every business in town.

In the speaking business I have alliances with several other speakers who are experts on topics that I am not. When we get a lead for a speaking engagement that does not fit our specific knowledge we pass it along to another person in the group. Also after one of us has spoken to a specific group we always recommend one another for future speaking dates.

With the previous three examples in mind ask yourself:

Who could you form an alliance with to help distribute you sales literature?

Who could you form an alliance with to share expertise?

Who could you team up with to drive traffic to each others business?

Once you have answered these questions and come up with a list of target businesses, be pro-active. Take the initiative to approach the other person and offer first, to help them! The residual benefit will be more than worth the effort and as with all things in life you have to plant seeds before they grow! Start planting yours today by initiating some new strategic alliances, you will quickly find your marketing costs reduced and your traffic increasing!