Partner LifeCycle Management
Signing a partnership agreement is just the beginning of a long journey. Creating profitable and long-lasting relationships requires a deep understanding of the various stages of the Partner Lifecycle. This guide will walk you through the six Partner LifeCycle stages—Recruiting, Onboarding, Growth, Evaluation, Expansion, and Exit—providing insights and best practices for building and maintaining fruitful partnerships while delivering a great partner experience.
1. Recruitment
The recruitment stage is about finding the right partner to complement your business objectives. It's crucial to look beyond immediate benefits and consider long-term compatibility. Your goal should never be signing as many partners as possible, but only qualified partners.
Signing a partnership agreement is easy. Getting a partnership up and running is the hard part. It becomes even harder and expensive if you have to deal with partners that don’t fit or collaborate as you thought.
Effective recruitment involves clear communication of expectations and a mutual understanding of what each party brings to the table.
Keep also in mind that your partners want to partner with you for very selfish reasons. They seek a way to make their business thrive through a partnership. This is absolutely fine as long as your goals are aligned. This means they do not need to be 100% the same, but pointing clearly in the same direction.
To recruit the right partners:
Have a clear Partner Value Proposition
A compelling Partner Value Proposition (PVP) is key to attracting the right partners. It should clearly articulate the benefits of partnering with your organization, including potential revenue opportunities, market access, and unique selling points. A well-crafted PVP helps potential partners understand how the collaboration can drive their business growth and success
🔗 Creating a Great Partner Landing Page: Attract Your Ideal Partners
🔗 Embedding a Story into Your Partner Value Proposition
🔗 Partner Business Calculator (paid)
Address your Ideal Partners
Defining your Ideal Partner Profile (IPP) helps focus your recruitment efforts on partners who are most likely to succeed with your offering. By clearly identifying your ideal partners, you can adjust your communication and help your potential partners to know you are looking for them.
🔗 Guide to create an Ideal Partner Profile (IPP)
🔗 Ideal Partner Profile (IPP) - Template (free)
Qualify each partner before signing an agreement
Implementing a thorough partner qualification process ensures that you're investing time and resources in partnerships with the highest potential for success. Use a structured approach, such as the 4C method (Customer, Credibility, Capability, and Commitment), to evaluate potential partners.
🔗 Qualifying Channel Partners with the 4C Method
🔗 Partner Research & Qualification Sheet (free)
Agree on a Mutual Action Plan as early as possible or sign an MoU
Establishing a Mutual Action Plan (MAP) or Memorandum of Understanding (MoU) early in the recruitment process helps align expectations and set clear objectives for the partnership. This document outlines key milestones, responsibilities, and timelines, providing a roadmap for the initial stages of the collaboration. It also demonstrates a commitment from both parties and can help accelerate the partnership's progress.
🔗 Memorandum of Understanding (MoU) - Template (free)
🔗 Mutual Action Plan - Template (free)
2. Onboarding
Onboarding sets the foundation for a successful partnership. This stage is about establishing processes, sharing knowledge, and beginning an active collaboration. It's also crucial for creating momentum, where both partner teams are fully engaged and motivated.
Key aspects of effective onboarding:
Set a duration and make use of the momentum
Plan for an onboarding phase of 60-90 days (up to 120 days for complex OEM partnerships). Capitalize on the excitement of starting a new partnership, but recognize that this effect doesn't last forever. Set a clear milestone at the end of the onboarding phase – a moment of success to celebrate with your partner and fuel ongoing momentum.
Execute essential onboarding activities to enable your partner
Perform comprehensive training on products, services, and processes. Establish clear communication channels and be transparent. Finish technical integrations and give access to any system required to collaborate, including partner dashboards, knowledge bases, etc.
Start with a kick-off event (call / in-person) and proceed with a plan
Begin the onboarding process with a formal kick-off event in person or via video call. This event serves as the official start of your partnership journey. During the kick-off, introduce key team members from both organizations, clearly outline the partnership's goals and objectives, and present the onboarding plan and timeline. This is also an excellent opportunity to address any immediate questions or concerns and build excitement for the collaboration ahead.
Following the kick-off, proceed with a structured onboarding plan that you have discussed during the kick-off meeting.
🔗 Partner LifeCycle Planner (paid)
Celebrate the end of the onboarding
As you approach the end of the onboarding phase, prepare for the milestone celebration you identified earlier. This could be the official partnership announcement, the launch of a joint product or service, or the completion of the first successful joint project. Use this celebration to recognize the hard work of both teams, reinforce the partnership's value and potential, and energize both organizations for the growth phase ahead.
3. Growth
The growth phase is where the partnership begins to flourish and deliver tangible results. This stage is characterized by active collaboration, expanding market reach, and increasing value creation for both parties.
Growth in a partnership isn't just about scaling heights, but also deepening roots. While you keep moving forward with the partnership you will also face challenges. How you will overcome those challenges and learn from them will define how the partnership will perform in the future.
Keep in mind that a business partnerships is not a transactional, but a collaborative relationship.
Identifying Collaborative Behaviors
Behaviors
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Understanding the difference between transactional and collaborative relationships
Transactional = Sales | Collaborative = Partnerships
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4. Evaluation
Regular evaluation in a partnership is like a health check-up; it keeps the relationship fit and robust. Performance monitoring and regular reviews become increasingly important as the partnership matures. Establish a cadence of quarterly business reviews (QBRs) to assess progress against established key performance indicators (KPIs), discuss challenges, and plan for the upcoming quarter. These reviews should be data-driven, focusing on metrics such as revenue generated (apply for channel partnerships), customer acquisition rates, and partner satisfaction scores. They also provide an opportunity to celebrate successes and recognize outstanding contributions from team members on both sides.
To maintain momentum during the growth phase, consider implementing incentives, such as a Preferred Partner Program that motivate performance. This program offers benefits to high-performing partners, including financial bonuses for exceeding targets, increased marketing support, and early access to new products or features. These tangible rewards keep partners engaged and motivated to achieve shared goals. They also encourage all partners to aim higher, creating a positive cycle of improvement and teamwork.
Preferred Partner Program
Program Intro
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Partnerships often spend extended periods cycling between growth and evaluation phases. This loop can last for months or years, depending on the partnership's nature and goals.
During this period, partners focus on executing their joint strategies, measuring results, and making necessary adjustments. Regular evaluations help identify areas for improvement and new opportunities within the existing partnership framework. This ongoing process of growth and assessment allows the partnership to adapt to changing market conditions and evolving business needs.
The partnership may remain in this growth-evaluation loop until one of two things happens:
- An opportunity for significant expansion arises, prompting the partners to enter the expansion phase.
- A trigger for exit occurs, such as achieving all partnership goals, a major market shift, or a change in one partner's business strategy.
Only when one of these scenarios unfolds does the partnership move beyond the growth-evaluation cycle into either expansion or exit. This extended period of stable collaboration often forms the core of a successful, long-term partnership.
Now, let's explore the expansion and exit phases:
5. Expansion
As partnerships mature, opportunities for expansion often arise. This phase involves exploring new ways to grow the partnership's scope and impact. Partners might consider entering new markets, developing joint products, or increasing collaboration in existing areas.
Clear communication is vital during expansion. Even though the partnerships may have matured at this stage you enter new territory that may trigger unforeseen actions or reactions. Establish regular check-ins to discuss progress, challenges, and necessary adjustments. Be prepared to adapt plans based on initial results and changing market conditions.
Remember that expansion isn't always about doing more. Sometimes, it means focusing on areas with the highest return on investment and phasing out less productive aspects of the partnership.
6. Exit
Not all partnerships last forever, and a well-managed exit is as important as a strong start. Exits can occur due to achieved goals, changing markets, or shifting company strategies.
When exiting, review your partnership agreement for predetermined exit clauses. Be transparent about the reasons for ending the partnership and work together on a transition plan. This plan should cover winding down operations, dividing assets, communicating with stakeholders, and transferring knowledge.
Even if the partnership is ending, maintain professionalism and respect. A well-managed exit can preserve relationships and reputations, potentially leading to future opportunities.
After the exit, review the partnership to identify lessons learned and successes. This insight is valuable for future collaborations.
An exit doesn't necessarily mean failure. It can be a strategic move allowing both parties to pursue new opportunities or refocus on core areas. Manage the process with care and respect for all involved, including joint customers