Partnership marketing is a type of marketing where a company collaborates with another business to attract new customers, sell goods, and services. The collaboration is built on mutually beneficial terms and helps both parties to gain something useful, such as income or advertising.
Partnership marketing can take various forms:
- affiliate marketing — partners help the business to sell by placing links to the company's website on various external resources;
- referral marketing — partners receive income for each client they attract;
- distribution — the company offers its customers the partner's services or goods, receiving a percentage of the sales in return.
- joint promotion— partners recommend each other to their clients, write posts on social networks, and place banners on their website.
Partnership marketing allows companies to increase their customer base and sales without significant advertising and marketing costs. At the same time, the company pays only for the result — for the attracted customer, purchase, or other desired action. Partners receive their benefits, which should stimulate them to help others.
An important part of cooperation is tracking partners' actions and paying rewards. Transparent and honest cooperation is a guarantee of successful partnership marketing. However, for the proper implementation of partnership marketing, it is necessary to carefully choose partners. It is necessary to control the quality of partners' work and be sure that their audience will be interested in the proposed services.