Agencies form technology partnerships in order to add additional capabilities to the suite of services they offer their clients. Partnerships are beneficial to all parties involved; this week, DSG will discuss the benefits of adtech partnerships and tips for success in forming partnerships.
Why Agencies Should Form Partnerships
Partnerships allow agencies to grow their portfolios. Adding tech partners can increase the knowledge and expertise of an agency, opening new ways to advise and assist clients. Agencies may also form partnerships in order to acquire technology that is beneficial to clients at a reduced rate. Technology providers can supply agencies with bulk licensing for products that agencies then offer to their clients at favorable rates. The tech provider benefits by increasing sales while reducing the amount of direct-to-consumer tech support needed, and the agency benefits by earning commissions from the partnership. Plus, acquiring a desirable technology can even help you obtain new clients.
Benefits to the Customers
Clients possibly experience the largest benefits from agency tech partnerships. As mentioned, bulk licensing allows for competitive pricing on top technology solutions for clients. When an agency forms many partnerships, it also allows clients to purchase all of their marketing and automation technology from one place, making campaign reporting, data analysis, tech support and billing much simpler and more organized.
Key Elements of Success
So, how should your agency go about forming partnerships with technology providers? DSG has many successful partner relationships, and these are the elements we’ve found that ensure a positive, mutually beneficial structure.
Revenue Sharing
The top priority in working out the terms of your partnership is, of course, determining a revenue sharing solution that is beneficial to all. The technology provider should be able to offer a reasonable incentive for you to re-sell their products, like a commission for each sale.
Communication Transparency
It is important to ensure that your avenues of communication are open, and clear expectations are set for all levels of both organizations. Communicate proactively by setting bi-weekly or monthly check-in calls with your partner to review any news, troubleshooting, and expected changes to the partnership.
Clear Delineation of Roles
Align on who is playing what roles in your partnership. Will you be providing support to your clients who use your partner’s technology, or do they prefer that clients go straight to the source? Also align on who within your companies will be the point of contact for when you need to reach each other.
Forming partnerships can help your agency to expand your realm of expertise and gives you the ability to offer new solutions and insights to your clients. Be sure you’re making smart decisions when choosing who to partner with and the terms of the relationship.
