Should you double-down or branch out?
We are often asked for advice on a crucial decision: should partnership leaders double down on their current partners to deliver better results, or should they recruit new ones?
This decision significantly impacts partnering strategy, resources, and budgets and requires careful consideration. We all know partnerships are pivotal to achieving growth and strategic goals in our industry. 75% of the world’s goods go through partnership channels.
Finding the right balance between sticking with trusted partners and bringing in new ones is crucial for mastering the partner ecosystem. Leaders need to align their strategy with business goals, industry trends, and available resources to drive growth and innovation.
The benefits of farming your current partner ecosystem:
- Maturity of partnership and trust – One of the most significant benefits of sticking with current partners can be likened to selling more to a current customer as opposed to gaining a net new logo. Nothing beats having long-established trust ready and waiting to support growth. These relationships have been built over time, and both parties understand each other’s strengths, weaknesses, and working styles – making it simpler to do more with them.
- Speed and predictability of results – The familiarity of current partnerships can lead to quick growth. Onboarding costs and the time taken on the initial learning curve are investments already committed to from both sides. And with data giving you a proven track record you can gain a view of predictable, speedy ROI.
- Confidence in collaboration – And with all that connection comes honesty and confidence in communication. Long-term partnerships often lead to a more balanced collaboration, with known partners more likely to feel able to innovate and find creative solutions to challenges together with you.
Cons: But it’s not all positive news, there is a risk that these legacy partnerships are too comfortable and complacent to drive real change or impact – especially if it's widely known that your strategy is to double down on the current ecosystem.
The benefits of hunting for new partners:
- Innovation – Whilst it's not easy, recruiting new partners ensures you grab fresh perspectives, ideas, and new tech collaborations. Staying current and keeping open doors for integration and expansion into new technology areas is crucial to future-proofing.
- Diversification – New partners can provide a competitive edge as well as open up new markets, customer segments, and opportunities that were previously inaccessible. Diversifying your partner base can also reduce risk, ensuring business continuity if one partner faces challenges.
- Flexibility – With a clear view of what actions you want new partners to complete with the customer, they offer different capabilities and resources, providing greater flexibility to adapt to changing market conditions and customer demands.
Cons: Don’t forget onboarding costs, including time and resources spent on training and enablement! Building trust with new partners takes time, and there is always a risk that the partnership may not work out as expected, leading to potential disruptions. New partnerships come with a level of risk, and there is no guarantee that the new partner will deliver the desired results or align with your business values and goals.
Decision time: old pals or new prospects?
To make the decision, ask yourself these key qualification questions:
- What are you trying to achieve? When deciding between doubling down on current partners or recruiting new ones, consider your long-term business goals. If a change in solution, or how you deliver that to customers and market expansion are priorities, new partners might be the way to go. If stability and consistency are more critical in ensuring customers enjoy the satisfaction and stickiness of your solutions, sticking with current partners could be beneficial.
- Where do you sit today in an industry benchmark? Evaluate the performance of your current partners and consider the current market conditions and industry trends. Assess your resources, including time, budget, and (wo)manpower, and determine your risk tolerance to taking the leap into new partnerships.
- Does it have to be one or the other? If your partner program is well-structured, modular, and aligned with your strategic business goals, there’s no reason you can’t focus on both your current ecosystem and the next generation of partners. Just make sure to intentionally choose this dual approach, rather than letting it happen by chance.
When it comes to partnerships, there’s no one-size-fits-all answer. Whether you choose to deepen relationships with trusted partners, explore fresh collaborations, or a bit of both, the key is to stay intentional. Align your approach with your business goals, assess your resources, and stay flexible to adapt to market changes. The best partner strategies are the ones that drive growth while keeping your ecosystem dynamic and future-ready.
What are your thoughts on this topic? Do you have any specific experiences or insights to share? Book a virtual coffee with Amy – she would love to hear about your partner ecosystem growth strategies and challenges.
Amy Roberts is the EMEA principal at PartnerPath. She is based in York, UK.