I am pushing the idea of co-branding to my bosses. This is one such article that touts the benefits of this type of relationship. We need additional revenue streams. As a marketer & brand ambassador I network constantly and honestly I have great information that is beneficial to our partners, why not make money while sharing? A few months ago we volunteered our social media savvy for a non-profit; I did double duty for three weeks. My shoulder still hurts from copying & pasting links and sending out mass emails (one at a time).
I learned a valuable lesson from this: many of the organizations that we are working with are less knowlegable about social media than we are thus presenting a unique opportunity for us.
Our primary business is in home care. But for the month of January we were a social media marketing company. Our goals was to create local buzz, spike the organizations likes on Facebook & secure a speaking engagment. We did all three!
So why not build off of that basic concept to build relationships, increase referrals/sales & leave a lasting impact on the community we serve. (While making money of course, I didn’t need to say that part)
So now to P. V. Reymond’s article. (he gives permission on his website to use this as long as we give him credit and provide a link to his website…this is wonderful for bloggers like me that struggle with daily post)
We have heard a lot of online entrepreneurs mentioning the term “co-branding.” Most of them have high praises when it comes to co-branding. So, what is the fuss about? What is the exact meaning of co-branding when it comes to online marketing? Co-branding is a form of marketing in which you leverage your referral partner’s client base.
In my opinion (PV Reymond’s opinion) I think that co-branding is the most underrated and an overlooked online marketing strategy. Co-branding is a marketing strategy wherein it can be an extremely effective way to generate online business. The best form of co-branding is when it adds value and enhances your partner’s website by offering valuable tools and added functionality.
If you plan on doing co-branding you must remember that you should choose a partner that is closely related to the product or service that you are offering. Think of it as like this, a prospect clicks on a link on your website, then after doing so he is directed to another website with a totally different brand or company, believe me when I say that this will confuse prospects.
If your partner’s products or services are so far-off from what you offer yourself then prospects will be of course be confused why they have been directed to an entirely different web page with unrelated content. When it comes to co-branding you need to choose partnerships that have something in common with the product or service that you’re selling.
Co-branding can be very cost effective, particularly for small online businesses. However, if you choose the wrong associate, or too many partners, it might be more harmful than advantageous.
Co-branding online can be done by offering your service, the information that you have, as well as your products under a different company’s identity, while preserving your own brand in less leading format. The later is made for your own advantage and is commonly the main reason for the entire product or service offering.
Co-branding Advantage #1: Less expense to market a new product
If you decide to go with co-branding then I am telling you right now that it results to less expenditure. We all have an idea as to how much it will cost to market a new product right? And of course we all know that if you are alone and you market a new product then the expense will be outrageously high.
However, with co- branding you need not worry about that because it results in very less expenses because of the already existing brand image of the other business in the market.
Co-branding Advantage #2: Boost the company’s brand image while increasing profits
When you start with co-branding you are able to reach out to more and new prospects with your new products and services. Introducing new products or services creates a buzz and stirs curiosity amongst your target market and this result to an increase in brand value and at the same time it boosts profits.
Co-branding Advantage #3: New markets
Co-branding enables you to reach people or areas that were out of your reach before. When you were operating the business by yourself you have limited access, but when you start with co-branding, you are able to tap into customers which you were not able to reach before. This results in bringing new customers to your online business.
Co-branding Advantage #4: The risks involved would be less
If ever you just started your online business then the risks of introducing a new product to the market is higher. It will take some time before you are able to tap into your market, usage and implementation of various strategies is needed. So, it is better for new online businesses to tie up with an established company which have a brand value in the market and this result in reaching the target market easily. Co-branding Advantage #5: Improvement of products with the use of modern technology
With co-branding, you get to share with the other company’s technology which will assist you to produce better products. This will yield in giving quality products that can be offered at a fair price with advanced features which will of course attract new and existing customers.
Co-branding Advantage #6: Introduction of your products or service to the other side
The best example for this is the promotion of Intel. Years ago Intel came up with the slogan “Intel Inside,” this made consumers realize what was inside their IBM and Compaq computers. Because of this around 300 computer manufacturers started co-branding with Intel.
Co-branding Advantage #7: Benefits from the other company’s customer base
Co-branding can bring in the benefits to a company from its partner’s loyal customers. Back in 1984, Nike got together with Michael Jordan the world-renowned NBA player with the basis that all Jordan fans would feel affectionate and loyal towards Nike and choose it over its competitors. Why? Because, well their idol is with Nike, so they feel the need that they should also be loyal to Nike. Written by: PV Reymond http://internethomebasedbusiness.startup-internetbusiness.com/co-branding-advantages/