The Pros And Cons Of Co-Selling In The Technology Industry
by Arnab Dey Sales & Marketing 12 May 2022
Co-selling is an increasingly popular model of partnership in the technology industry. Unlike traditional selling partnerships in which one partner independently markets and sells the products of another, a co-selling partnership is far more collaborative.
In a co-selling partnership, two organizations pool their resources and expertise in order to more effectively fulfill consumer needs. co-selling partnerships are increasingly seen as the best way to do business in the technology sector.
In the technology sector, many production niches and sales markets are incredibly specialized, meaning that companies can’t go it alone successfully unless they have vast quantities of money invested in them. Co-selling is not, however, for every company.
With this in mind, let’s look at the pros and cons associated with co-selling in the technology industry.
1. Sharing Success
When people ask the question ‘what is co-selling?’, the easiest answer to give them is this: it is a means for sharing and amplifying success. Businesses engaged in co-selling partnerships are essentially providing mutually beneficial aid to one another and reversing the negative impact of over-competition. They receive more of the market share, and each improves the performance of the other.
2. Holistic Solutions
A good co-selling partnership will partially be based on the needs of the consumer. Good-quality partnerships are able to offer holistic – or total – solutions to the needs of their chosen consumer base.
3. Collaborative Research And Development
Research and development is usually a secretive affair. In co-selling partnerships, research and development successes are shared – making them far more financially efficient.
4. Increased Brand Awareness
Partnering with a company also involves the acquisition of the brand identity that said the company has built up. This benefit’s both partners, as both have an equal interest in the success of their partners.
5. New Markets
Partnering with a company on an equal level also means gaining access to the market in which they have pursued business. This can be an efficient way of breaking into a new market.
1. Sharing Success
For some business owners, the idea of sharing success might be a little too much to swallow. They may be too used to the old idea of an inherently competitive business environment. There are instances in which competition drives the success of a business, but generally speaking, rivalry costs money rather than brings it in.
2. Partnership Concerns
Choosing the right co-selling partner is extremely important. Picking the wrong business to partner with could lead to a completely uneven relationship in which one company drags the weight of the other company around with it like a ball and chain.
Partnerships should be entered into only after a careful period of market analysis and negotiation. Roles should be clearly defined in order to avoid an imbalance of labor. If business partners fall out or suffer from a communication breakdown, the health of both of their businesses will undoubtedly suffer.
3. Copyright Non-Exclusivity
Co-selling partners often need to share the rights to previously exclusive products and services in order to operate efficiently.