Partnership agreement negotiations are a lot like any other negotiation—everyone wants to feel like they “won.” But here’s the thing: true “winning” in a partnership doesn’t mean someone else is losing. In a successful partnership, both sides should feel like they’ve gained something valuable.
So how do you create that win-win dynamic?
𝗦𝘁𝗮𝗿𝘁 𝘄𝗶𝘁𝗵 𝗔𝗹𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗼𝗻 𝗢𝗯𝗷𝗲𝗰𝘁𝗶𝘃𝗲𝘀
Before diving into the details, ensure that both parties are aligned on the partnership’s overarching goals. If you're not on the same page from the outset, you’ll end up spinning your wheels. Alignment creates clarity and sets the stage for productive discussions.
𝗧𝗵𝗲𝗻 𝗙𝗼𝗰𝘂𝘀 𝗼𝗻 𝘁𝗵𝗲 𝗖𝗼𝗺𝗺𝗲𝗿𝗰𝗶𝗮𝗹𝘀
Once you have shared objectives, shift the conversation to the financial and commercial terms. After all, no one enters into a partnership purely for altruistic reasons—it has to make business sense for both parties. Ensure that the commercial terms reflect the value each side brings to the table.
𝗕𝘂𝗶𝗹𝗱 𝘁𝗵𝗲 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 𝗔𝗿𝗼𝘂𝗻𝗱 𝗧𝗵𝗲𝘀𝗲 𝗙𝗼𝘂𝗻𝗱𝗮𝘁𝗶𝗼𝗻𝘀
With aligned objectives and clear commercial terms, you now have the foundation for a strong agreement. But before signing off, ask yourself a few critical questions:
• 𝗪𝗵𝗼𝘀𝗲 𝗣𝗮𝗽𝗲𝗿 𝗜𝘀 𝘁𝗵𝗲 𝗔𝗴𝗿𝗲𝗲𝗺𝗲𝗻𝘁 𝗼𝗻? This is often a point of contention, especially when the larger company insists on using its own standard contract. While it’s common for the bigger player to take the lead in drafting the agreement, 𝘀𝗶𝘇𝗲 𝘀𝗵𝗼𝘂𝗹𝗱 𝗻𝗼𝘁 𝗱𝗶𝗰𝘁𝗮𝘁𝗲 𝗰𝗼𝗻𝘁𝗿𝗮𝗰𝘁𝘂𝗮𝗹 𝗮𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲. Remember, a partnership is a mutual agreement, not a one-sided contract.
• 𝗜𝘀 𝗔𝗻𝘆𝘁𝗵𝗶𝗻𝗴 𝗢𝗻𝗲-𝗦𝗶𝗱𝗲𝗱? A true partnership is a two-way street, so if you see clauses that disproportionately benefit one side, it’s a red flag. Make sure there’s symmetry in the agreement to ensure that both parties feel valued and protected.
• 𝗜𝘀 𝗔𝗻𝘆𝘁𝗵𝗶𝗻𝗴 𝗨𝗻𝗻𝗲𝗰𝗲𝘀𝘀𝗮𝗿𝘆? In my experience, a significant amount of time in negotiations is spent revisiting the same few clauses and sections. So ask yourself: 𝗗𝗼 𝘁𝗵𝗲𝘀𝗲 𝗰𝗹𝗮𝘂𝘀𝗲𝘀 𝗻𝗲𝗲𝗱 𝘁𝗼 𝗯𝗲 𝘁𝗵𝗲𝗿𝗲 𝗮𝘁 𝗮𝗹𝗹? If they're not essential to the partnership's success, consider eliminating them. Streamlining the agreement not only saves time but also ensures that the contract remains focused on what truly matters.
𝗖𝗼𝗻𝗰𝗹𝘂𝘀𝗶𝗼𝗻: 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗣𝗮𝗿𝘁𝗻𝗲𝗿𝘀𝗵𝗶𝗽𝘀 𝗧𝗵𝗮𝘁 𝗟𝗮𝘀𝘁
Negotiating a partnership agreement doesn’t have to be a battle of concessions. Instead, it’s about crafting a deal that aligns with both parties’ goals and creates mutual value. When you approach negotiations with fairness and transparency, you lay the foundation for a partnership that lasts and grows.
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