Strategic Alliances go Far Beyond JVs

One of my favorite marketers, the brilliant and unconventional Sean D’Souza in far-away Aukland, New Zealand, claims he built his entire Psychotactics business on strategic alliances.

And I believe him.

Strategic alliances are that powerful. Two world-class examples:

Apple, IBM and Motorola joined forces in the 1990s to design the PowerPC computer chip–which dominated at least Apple’s product line (and I think was used in various IBM models as well) for the next several years.

And a person in the audience of one of my speeches reminded me that until it formed a strategic alliance to supply operating systems, Microsoft was just another two-bit hole-in-the-wall computer business.

The comments on Sean’s blog page got into a discussion of the typical Internet-marketer JV, but Sean correctly responded,

The downsides to strategic alliances? I know of few. One is, that because they’re not motivated by money, there’s less momentum–that is they’re less likely to be motivated to help. But this hasn’t been true for me. Our alliances have literally built our business, and continue to do so. And the entire relationship is built on trust. And respect.

The downsides to Joint Ventures, I can list by the dozen. The essential problem with joint ventures is money. When the money dries up, so does the motivation. But it’s also an upside. I don’t know. Call me crazy. I prefer alliances over joint ventures.

I agree with Sean. In fact, I posted my own comment, “Most people can’t see beyond the typical JV arrangements to see the much greater power of strategic alliances (and the friendships that can come out of them)” to grow a business.

Strategic alliances have been an essential tool in building my business, and I haven’t yet structured one like the typical Internet-marketer JV (though I may, down the road). At the moment, thanks to a strategic alliance with Sean’s Aukland neighbor Mark Joyner of Simpleology (another fantastic marketer–what’s in the water down there?), I’m about to participate in what could be the most powerful strategic alliance of my career, a partnership that involves one of the most famous names in marketing as well as a large publishing corporation. I’ll tell you all about it once the papers are signed. 🙂

Meanwhile, if you want to know more about strategic alliances, I cover them in some detail in my award-winning sixth book, Principled Profit: Marketing That Puts People First. Incidentally, my alliance and friendship with Mark came about because he ordered this book, and I was brave enough to seize that opportunity to begin a correspondence with him.