Strapped for Cash?
Savvy companies explore coopetition for new revenue streams
💣💥Kayo troubles with a little help ~ from a friendly competitor
When Marty Fahncke, investor, growth strategist, business and marketing whiz, as well as host of LinkedIn’s group, Internet Affiliate Marketers Association, dropped the word “coopetor,” my ears perked up. I had never heard it before.
He was describing how he helped businesses get big benefits with some creative networking. It made me wonder why I hadn’t heard more people talking about coopetition as a business growth strategy.
As a turnaround specialist, Marty looks for partners in his out-of-the-box exploration. Entrepreneurs to enterprises can improve profits, revenues and efficiencies with this model by leveraging the resources of other companies.
Prospective coopetors may:
1) Be a new source of revenues
2) Offer efficiencies, therefore increasing profits on sales and/or reducing costs
3) Discover non-traditional ways of raising money
As marketers, we are all so consumer-focused that we might miss the opportunity to develop income streams through friendly “competitors” to channel warm leads our way.
🤝 Investopedia’s summary of coopetition or cooperation between seeming or real competitors documents a perfect example. During COVID, two biotech companies, Pfizer and BioNTech SE, teamed up to develop a vaccine, pooling resources in research and manufacturing to speed delivery of millions of doses.
🤝 A personal injury law firm might seek out other law firms — seeming competitors — who don’t play in the same space. Chris Dreyer of Rankings.io, an SEO agency for personal injury law firms, diagrams partner prospects, including non-PI attorneys who might refer business to him. I detail how he mind maps potential companies whose audience he can leverage to get warm leads in the companion workbook of my Dream Networking Program.
🤝 Tillamook Cheese began processing whey for nutritional supplements, formula, sports drinks and protein bars, creating a new stream that uses a derivative of their primary cheese production process.
🤝 In “How to Add Pay-for-Performance Affiliate Marketing to Your Mix,” my course for DMAnc.org (on demand & live April 6)📺, I describe how a pet store and a pet food company might become affiliate partners of each other, marketing the products and services of the other partner, even though the pet store sells food from other companies and the pet food is sold by different pet store chains.
📺 Watch Marty’s interview on Radio Free Enterprise about the sign shop that grew without a cash infusion with a referral by a strategic investor. Marty details how he helped some beekeepers grow without creating unnecessary infrastructure and find a new outlet for unsold inventory.