It Pays to Find the Right Partner

ChannelPro Magazine, one of the computer network support industry’s most respected publications, ran an article about DedicatedIT this month. They liked what we had to say so much that they decided to have us sit in for a podcast as well.

From the article:

“We look for companies that value customer service as much as we do and that have the flexibility to make smart decisions on the fly rather than slavishly sticking to standard operating procedures. And above all, we look for companies that deliver on their promises.

Selecting partners is more art than science. You can study a company’s financials and market position and Website all you want. Ultimately, gut instinct is what counts. One of my employees sums up, very nicely, the key question we ask about potential partners: Do they walk like us and talk like us? Often, we find the answer in little things, like how fast they reply to emails. We get back to people pretty quickly around here. A company much slower in replying probably wouldn’t make a good partner for us.”

Network Support Companies Should Partner Smartly

The article is about how DedicatedIT picks companies in which to partner, with a specific focus on how we chose Zenith Infotech. They are one of our primary and most important partners, but the advice still works for other partnerships or industries as well.

This article delivered lots of calls and emails to Adam Steinhoff’s inbox asking for more information. One of them came from Jeff Weinman of Computer Dimensions. He asked:

…..a new type of partnership for both of us as this will be their first formal partnership agreement.  We are going to work together to create an agreement.  After reading your comments about all of the partnerships you have and continue to develop, I thought I’d ask about how your typical partnerships are setup.

My initial thought is to find a way for both sides to capture recurring revenue based on a small percentage of the contracts that come from referrals on either side.  I have many thoughts both for and against this type of arrangement.  From your experience, what has worked well for you?

If you don’t mind sharing a few thoughts, it would be greatly appreciated.

How a Smart Networking Support Company Partners

Adam Steinhoff recommended the following to Jeff:

I tackle this in, what I think, is a very easy approach: I do NOT put agreements in place.

I partner with companies who:

1. I am happy to pass business ‘just because’, and I know that they regard us the same way.
2. I know will take very good care of my clients and the relationships that I have built.
3. Have products and services that overlap minimally with our company.
4. Are as aggressive in responding to new referrals as we are.
5. Can pass me just as much business as I pass them.
6. Benefit from me just as much as I do them.

And, especially, receive NO money for referrals to/from us. This way, I can look my clients in the eye and say “I have no monetary stake in this decision. I am referring you to XYZ because I feel it is the best decision for YOU.”