The Problems of Partnerships - Airlines can't get it right!
If you're going to form partnerships with other companies, please get it right! I see way too many companies forming alliances mainly for the sheer sake of forming alliances and doing "biz dev" work, but it's often a distraction from the core focus of your company. And if you decide to go forward with the partnership, it helps if the connection is seamless and that your customers are able to extract true value from that partnership.
Let's take a look at my favorite companies: airlines! Gotta love the expensive fares, the long delays, the bad food, and of course the incompetent representatives. It may sound like I write way too much about how airlines suck, but I'm just giving my honest advice!
Many of these airlines participate in mile-sharing programs. This basically means that if you accumulate frequent traveler miles with one company, you could use it with any of its partners. The plus side being that you're not scared to accumulate these miles because you have supposed assurance that you can use it anywhere. Of course, when it comes time to actually use your points on partner airlines, you may find yourself running into a brick wall.
True story: I booked my round trip airfare to Amsterdam with KLM because the FAQ's said that I can upgrade using frequent flyer miles after booking the flight in coach. Only problem being that KLM's partner, Delta, won't let me use the Delta miles for the upgrade unless I'm upgrading a Delta seat. How lame is that? Sure, it's partly my fault for not being 100% sure I could upgrade before booking my seats, but this example comes to show that the supposed partnerships these companies have between one another don't allow customers to take full advantage of their frequent flyer miles!
As for the logistics behind entering a partnership, some companies waste way too much time, energy, and money on getting a deal done only for it to fall through. The best deals I know of happen near instantly, where each company can easily help the other without changing too much. For example, I spoke to the marketing guy at Shopzilla.com, and he told me about the many partnerships the company has with media companies to exchange traffic with each other.
In a nutshell, finding partnerships can be a terrible waste of time. But if you decide to enter into a partnership, focus on the cheap and easy ones and do them right.
Jessica Mah is a 17 year old entrepreneur, blogger, and sophomore in college. She's currently the founder of a startup, managing editor at Startupism.com, and Jessicamah.com.