Partnership types tool
Consider what type of partnerships best suit your organisation.
There are many different types of partnerships. Here are the most common and popular (adapted from Partner 2 grow)
| Type | Definition |
|---|---|
| Affiliate | Agreement to promote and/or sell a partner's product or service in exchange for a commission, usually a percentage of the sale but this can also be a flat bounty (set fee per unit). |
| Benefit | Usually a simple marketing partnership. The offering of a value-add, competition prize, sample, giveaway, offer of discount, voucher or dollars off to your partner's customers in exchange for negotiated benefits such as promotional exposure. |
| Bonus | Most commonly, the purchase of loyalty points from an existing loyalty program which are awarded to your partner's customers when they make a purchase from you. Within airline and credit card loyalty programs they commonly cost about two cents per point or two per cent of the transaction size. |
| Cause marketing | Where a business aligns with a cause (such as a charity) to increase awareness or make a donation (as a percentage or flat fee) for every agreed item sold, e.g. Breast Cancer Foundation and Mt Franklin Water. |
| Co-marketing | A marketing practice where two companies cooperate with separate distribution channels, sometimes including profit sharing. This can include creating a new product, service or brand. |
| Content | The provision of expertise and valuable content by one partner such as 'how to' videos, educational workbooks, articles and other content that would be considered valuable and relevant by the other partner's audience. What can you offer, what do you want? |
| Distribution | A partnership designed to leverage the distribution channels of one partner by the other partner either through different channels or in different locations, e.g. David Jones and Shoes of Prey. |
| Licensing | Renting or leasing an intangible asset. Examples of intangible assets include a song, character, name or a brand. An arrangement to license a brand requires a licensing agreement. A licensing agreement authorises a company which markets a product or service (a licensee) to lease or rent a brand from a brand owner who operates a licensing program (a licensor). |
| Redemption | Traditionally a redemption partner is one that offers gift cards or merchandise at a wholesale rate, for sale by (usually) a partner operating a points-based loyalty program in exchange for its members' points. The points are calculated at the RRP of the item and a wholesale discount is provided. |
| Sponsorship | To support an event, activity, person, or organisation financially or through the provision of products or services. A sponsor is the individual or group that provides the support. Sponsorship is a cash and/or in-kind fee paid to a property (typically in sports, arts, entertainment or causes) in return for access to the exploitable commercial potential associated with that property. |
Resources available
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