Finding the right number of partners

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July 10, 2023

Building a partner network requires striking a balance between demand and supply, and companies can leverage economic theory to find the optimal number of partners for their network.When it comes to building a partner network, companies must consider both the availability of partners and the margin they can generate. This creates a demand and supply curve, where the optimal number of partners is the point where the marginal benefit (revenue generated) equals the marginal cost (investment in managing partners/number of partners).Furthermore, building the optimal partner network can lead to Pareto efficiency, where all partners benefit from the partnership without any partner being worse off. This is because the right partners bring unique capabilities, market reach, and customer base, creating a positive sum game where all partners win.By leveraging these concepts, you can build the right partner network that delivers maximum value to everyone involved.

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Co-Founder, PartnerChampion