Question

Topic: Strategy

Sales Partnership Strategy And Win-win Situation

Posted by Anonymous on 11/2/2009 at 2:59 PM ET 125 Points
Related to an earlier question - see :https://www.marketingprofs.com/ea/qst_question.asp?qstID=30507.

In a couple of days, I am going into a meeting with a person owning 7 hotels in my district. Meeting and conferences is a big part of the income on these hotels.
I want to suggest to establish a new company (or even use my own name/domain - www.traveldesk.no).

I want this new company be part owned by my self, this person I'm meeting and 4-5 other partners - like companies specialising in conferences, travel agents, event companies and air craft rental/charter. All in related services to B2B, but not in direct competition.

I then would like to market and sell these respective products and services as a sales rep, in a very professional manner.

But I'm not quite sure how to be paid or share the cost for the service.

I would appreciate any comments and suggestions, one any part of the idea. Have anyone done this before?

best regards
John Steinar
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RESPONSES

  • Posted by CarolBlaha on 11/2/2009 at 5:09 PM Accepted
    I am wondering why you'd want the hotels to own part of your business. What do you have to gain? Trust me on this-- partners are a pain in the duppa.

    Just set yourself as a performance based sales independent rep. Independent reps are in every field. Its a proven and well paying biz to be in. You are doing all the work. Your services add $ straight to their bottom line.

    That way-- you can contact other services-- like florists, wedding officiants, wedding candles-- and earn commissions without going thru partner meetings and ok's.
  • Posted on 11/3/2009 at 2:44 AM Author
    I guess there is always a risk. I have a family with 3 kids, and need a little capital and long-term relationship.

    I think that this is not 100% as a partnership. I will be the manager, and I will do the work.

    In any way, I would like to contact other services (but they might not be partners).

    I just need a few - to get the help and start I need to succeed.

    Best regards
    John
  • Posted by Jay Hamilton-Roth on 11/3/2009 at 8:10 AM Accepted
    I'm not sure that a partnership is best for everyone. For example, as the hotel owner, I'd already be doing my own advertising and marketing. What extra do you bring to the relationship? I'm with Carol - be an independent sales rep (or apply for a job with the hotel as staff to ensure some income/benefits). (Aside: if you do create a partnership, I would expect each partner to contribute some $ into a common pool - and that would start you out further from your $ goals).
  • Posted by CarolBlaha on 11/3/2009 at 8:28 AM Accepted
    Jay is right-- not only do they do their own marketing, but they have on staff event managers, catering managers and wedding planners. That can be a conflict. Someone starts working with you, but they have been contacted by the hotel in the past--who's job is it?

    And if they do contribute start up funds-- they won't let you just be your own boss. I wouldn't just hand over funds and not inspect what I expect-- and neither would you. They will be partners. Not "sort of" partners-- if they give you upfront $ they will be partners.

    You could ask for a retainer and be independent contractor-- to offset set up costs, etc. But they'll still want results. It will only be a long term relationship if you more than pay back the investment. So you might as well go as an independent and lose all those people looking over your shoulders.

    I have a friend who is an independent meeting planner and she makes a more than livable income -- she raised her kids from it. She loves it. To promote a local spa she was invited with a group of clients to spend a few days there -- free. She's always going somewhere gratis. If you can sell it, the bigger dollars are going it alone.
  • Posted by michael on 11/3/2009 at 8:29 AM Accepted
    John,
    Hotel DOS in the US is fetching 35-45K plus commissions. I would encourage you to show success in that side, and then add the other suppliers as you go....and see a demand for them from your regular (new) customers.

    If you're just talking about being independent, go with 10% on bookings and make sure you're covered for the length of the agreement with the corporate customer.

    If you contact me directly I'll send you the agreement we use for this kind of relationship. It's very simple.

    Michael
  • Posted on 11/3/2009 at 10:41 AM Author
    Thank you very much for your comments and point of view.

    Please give me additional comments on the following:

    The reason I think like I do:
    1. To be a partner/owner - I hope - creates a long term commitment to make this work out good.
    2. Make a more solid fundament for what I want to accomplish.
    3. Several of the "partners"/"co-owners" - do not have their own sales force, a more static organization, because they are so occupied with what they already do.
    4. I need a few big partners/owners, witch already have a name in the market, but witch also, at all times, need more sales.
    5. It's possible to operate more like a consultative person, and take the customers side.
    6. It should be a lot easier for the customer - single point of contacts.
    7. Cost effective sales/marketing. Split costs on several companies.
    8. The whole is greater than the sum of its parts.

    (I guess I can find more examples - but dinners getting cold :) )

    I think its good that you "stress" my idea - but I also think that what I describe could work out well.

    Any comments?

    John

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