Like any business, advice firms are always looking for ways to generate new clients and revenue streams. It’s a vital part of growing.
For instance, robo-adviser Ignition Wealth last week announced a collaboration with data specialist Milliman. The partnership involves joining Ignition Wealth’s bank-grade white-label engagement solutions with Milliman’s data and analytics.
Milliman Australia practice leader Wade Matterson explained, “With global and Australian scrutiny of the financial service industry at an all-time high, everyone, especially advice providers, has to change.
“Increasingly, advisers and large institutions need technology that is robust and powerful to help them deliver better outcomes for their clients. Our collaboration will deliver robust digital advice technology to meet this need across multiple markets.”
Only time will tell if this partnership has merit, but the point is that every industry has a deluge of business ideas. The challenge is to bring the concept to market.
Partnering as an option
We’re all time poor, and this is the reason many planners choose collaborations to bring new offerings to market. Nor is partnering unique to the planning industry. In our business, we partner with website developers, graphic designers, media trainers, and search engine optimisation specialists to extend our offer.
Partnering makes sense, as adding extra capability to your business takes time, money, and a plenty of additional effort. It’s the time factor that kills most new ideas.
Even if you put in the time, chances are you may not have all the skills or basic knowledge to deliver a service extension. This is the value in partnering; in effect, you’re retaining skill sets that you have limited experience delivering. In return, you split the cost and revenue of the new opportunity. Sounds easy right?
How to make partnering work
There are a few tips that can make partnering work for your business from a sales and marketing perspective.
Firstly, set the guidelines about who is responsible for specific deliverables. Focusing specifically on sales and marketing, determine who is going to fill the different roles in the process; for example, are you both selling to your prospective clients, or is one partner taking the lead on sales, while the other is responsible for fulfilment? Also, be clear about the marketing costs. For example, if you’re building a new website for the partnership, clarify who’s paying.
Secondly, focus explicitly on the outcomes you’re expecting. It’s not uncommon for partnerships to fail because the parties have different expectations. Look to reach agreement on KPIs such as sales targets and be clear about how you’re going to collaborate to meet these milestones. If you’re not aligned on the outcomes, don’t start the partnership.
Thirdly, make sure you take an independent review of the partner you’re considering. Talk to other industry players or contacts about a potential partner’s reputation.
Finally, the approach I often take with a new partnership is to test the waters with a new client. Going into battle together will give you a strong sense as to the long-term value of the relationship, while also letting you iron out any kinks you didn’t anticipate.
