Partnering – the new profit center

Grab your partner and do-se-do

At the FMA (Fulfillment Management Association) meeting last month, a panel moderated by Nicole Bowman (co-leader of the talk I’m giving on Direct Mail Rules to Live By at the CM Show, Chicago, June 24) focused on the pluses and minuses of partnership.

On the down side, developing a partnership hardly proceeds at the speed of light. In fact, it can take 6 months to 2 years just to jell, and the volume and launch date can be unpredictable.

It’s challenging to find the right partner and forge a relationship that’s a win-win for both sides. In addition, the economics can become unprofitable – and once the program is approved, nothing can change with the promotions and program itself. Plus, problems can arise if your partner is not technically savvy.

Conversions, too, are lower, it turns out. So publishers use fewer renewal efforts. The rule is, the better the affinity, the better the renewal rate.

It was suggested a good starting place is to approach whoever is renting your names, being careful not to cannibalize ad sales. Suzanne Nicholas of Hachette recommended making a big splash with your first offer. Make sure it’s in the main sales channel, she emphasized, not a weak channel.

Peter Winn, Bonnier Corporation, pointed out the more niched = the more successful.

So what is the up side? Partnerships are one of the few untapped resources available to publishers today. They could be fertile territory to cultivate new subscribers who would not normally discover your publication on their own. And they could become a substantial revenue stream.

For copy that gets results or a copy checkup, contact Shira at 203 371-0654, via email at shira@promowriting.com or her website www.promowriting.com