RETHINKING YOUR PARTNERSHIP STRATEGY 12 SUMMER ' 18
SUMO ADVANTAGE AUTHOR BERNIE BRENNER ON WHY YOU NEED TO RETHINK YOUR PARTNERSHIP STRATEGY
DO YOU know the difference between business development and sales ? According to Bernie Brenner , CEO of Austin-based Rollick Outdoor and cofounder and former Chief Strategy Officer of TrueCar , many business leaders don ’ t . “ People use the term ‘ partnership ’ loosely ,” Brenner says , “ but in a true partnership , you are not selling anything . It ’ s not like selling software to a client , because in that case , if the company stops buying your software , the relationship ends .”
Brenner , who spoke at the May ScaleUp Summit 2018 in New Orleans , is author of The Sumo Advantage : Leveraging Business Development to Team with Heavyweights and Grow in Any Economy . In addition to running Rollick , Brenner sits on various boards and spends time mentoring other entrepreneurs on developing heavyweight partnerships .
Creating business partnerships was the crux of Brenner ’ s strategy while growing TrueCar , a digital automotive marketplace he cofounded in 2005 . TrueCar provides comprehensive transparency regarding automotive pricing and connects customers to its own network of certified dealers . TrueCar counts heavyweights like AAA , American Express , and Consumer Reports among its many partners , leveraging these “ sumo ” brands to establish its own credibility — even as a small , relatively unknown company .
Now , as CEO of Rollick Outdoor , Brenner uses the same approach to help retailers and manufacturers connect with customers in the powersports , RV , and marine industries . Through Rollick ’ s extensive affinity network with big-name partners — such as insurance giants State Farm and Progressive — both retailers and manufacturers can connect with customers with the backing of a far more recognized brand . “ They may not have heard of Rollick , but they ’ ve certainly heard of State Farm ,” says Brenner , in explaining his approach . “ When we partner with State Farm , in that instant , we carry the same weight and reputation as they do .”
Brenner is a big believer in forming partnerships to grow a small business into an industry leader because he knows the process works . Yet for many companies , this strategy doesn ’ t become an imperative until there is a serious disruption on the horizon . “ Companies are either market disruptors or are at risk of being disrupted by another company ,” says Brenner . Partnership formation is an extremely successful business strategy to win market share because it can create a huge differentiation in the market , increasing the quality of customers a company can attract and creating a virtual moat around their business .
You may wonder how Rollick Outdoor , a small company with under $ 5 million in revenues , can possibly attract the attention of State Farm — the largest propertycasualty insurer in the United States , with more than $ 75 billion in revenues . The answer is to find a way to align with your target partner ’ s core products . With State Farm , for example , Rollick is able to identify customers who are in the market for an RV or motorcycle , providing valuable information to State Farm about who may need a new insurance policy .
“ Even if a customer has a homeowners policy with State Farm ,” says Brenner , “ it doesn ’ t necessarily mean they will think of State Farm when it comes time to purchase a motorcycle policy — especially if they ’ re constantly exposed to TV commercials touting a competitor .”
Finding the ideal partner is a complex process , requiring proven business development skills — not sales skills . If you are thinking of pursuing the partnership route , be sure to spend plenty of time reviewing options so you understand in advance precisely how you can help your potential partner . “ Once you find what seems like the right fit ,” says Brenner , “ you need to create an evangelical pitch of your vision that shows why the two companies should work together . That ’ s how you get their attention .”
“ For the first time , partnerships are eclipsing acquisition as a growth strategy for the Fortune 1000 ,” says Brenner , referring to a September 2016 CEO Outlook report issued by KPMG . “ Companies are finally realizing that partnerships are an important and potentially better way to combat disruption than through acquisitions .”
IT ' S ONLY A DRY PIECE OF BREAD YET TO SOME IT MEANS MEET BERNIE SO MUCH BRENNER .
Bernie Brenner is the host of Extreme Biz Dev ( www . rollick . io ), a # 1 Bestselling author and business development ( BD ) expert , securing and expanding strategic partnerships for over 20 years . strategic business development . Bernie is the co-founder and EVP of business development at TrueCar Inc ., a company that has changed the way cars are sold across the country .