The New Partner SearchHow digital tools are changing the sourcing process.

“Identifying who it makes sense to partnerwith is a process, because the most logicalpartner may not be practical, appropriate,or even viable… The biggest challenge isfinding the right persons to lead the effort.”

- Stephen Cunningham, EVP, UcopiaCommunications

Table of Contents

Part 1: About This White Paper

The evolving process of partnership sourcing

Professional perspectives

Part 2: The Sourcing Process

Preparation is key

Sourcing prospects

Vetting

Part 3: What’s Next

Part 1

Last year, Powerlinx sponsored “Grow From the

Right Intro,” a report that opened up the

conversation around the role strategic partnerships

play in business growth strategies around the

world. Though the report found that 85% of

executives feel that partnerships are important to

their businesses, many respondents reported

difficulties in finding the right partner.

Analyzing these responses, it became clear that

executives and business owners want their

businesses to enter partnerships, but they lack

substantive information on how to source partners

in the first place.

At Powerlinx we recognize, as do most

businesses these days, that no business can act

as an island. They must operate and collaborate

in conjunction with other businesses. Eventually,

all of these relationships extend into a huge

global web of connections, driving product, cash

and information flows. But before collaborations

can happen, businesses need to be able to find

each other.

In this report, we hope to give you a glimpse into

the ways executives and business owners around

the world are finding and connecting with the right

prospects. In particular, we will shed light on new

digital practices helping compatible businesses find

each other, and we will provide some best practices

you can apply to your own partner search.

Let's Talk Sourcing

While business interactions were not abig part of the early social networks,LinkedIn was really the first majorgame­changer to draw businessprofessionals into the digital world.

About This White Paper

Nowadays, many are turning to digital sources tofind not just cold leads, but warm, qualifiedintroductions and future business partners. Therolodex is gone for good, as modern­day companiesare looking past superficial connections, and are inpursuit of connections with purpose.

The Evolving Process of Sourcing

Why are partnershipsimportant to your

business?

“As a fifteen-year old innovationagency, we are constantly looking forpartnerships for three reasons:

1) To benefit our clients2) To build sales for us3) The joy of learning new things.”

- Bryan Mattimore, Cofounder &

Chief Idea Guy, Growth Engine

Know what you’relooking for

“I primarily use Instagram to sourcebusinesses that would be a good fitbased on their brand, targetaudience, and followership… I useLinkedIn to locate the correct personto reach out to at a company I'vediscovered on Instagram. LinkedIn isgreat because it will tell me if any ofmy current connections know theperson I'd like to speak with, or ifthey know someone at the company."

- Katharine Contag, Founder &

CEO, ColorClutch.com

Perspectives

Finding strategic partners used to be a long process that depended

heavily on the personal connections of a business advisor or broker.

Lately, however, new digital tools have made it easier – and more

efficient – for business owners to find and reach out to prospective

partners. Though just a small proportion of businesses have

embraced the Internet as a catalyst for partnership sourcing and

management, more of the business-to-business world is poised to

join in as technologies continue to make digital sourcing more

intelligent and efficient than ever before.

Today, traditional networking can often be uncomfortable, costly

and, in some cases, impossible. Since the dawn of email and the

capacity for real-time communications with people around the

world, businesses are starting to change the way they operate,

including the way they find others to collaborate with. Social

networks – LinkedIn in particular – paved the way for companies to

successfully branch out and embrace business networking in a

larger, more global way.

Professional Perspectives

How and where are youcurrently sourcing

business partnerships?

LinkedIn is an excellent tool toidentify potential strategic partners.To do this, you can search oncomplimentary services (the onesyour clients need that you do notoffer) or directly via keywords.

- LisaMarie Dias, Founder,

LisaMarie Dias Designs

“The best outlet for Royce Leather insearching for business partners aremarketplaces that encourage brandsto convey their story and representwho they are.”

- Andrew Royce Bauer, CEO,

Royce Leather

"Twitter has been a useful resource onkeeping our eyes open for like-mindedcompanies. Our partnership withSandboxx started with a simplemessage over Twitter. We've also hadsome wonderful introductions fromcolleagues."

- Cody McGraw, Founder, SCOUT

Military Discounts

Perspectives

Today, traditional networking can often beuncomfortable, costly and, in some cases,impossible.

How have executives and business owners used online social

networks and other digital tools to find new opportunities for

collaboration? What does this mean for the future of strategic

partnerships?

To answer these questions and more, who better to ask than those

responsible for sourcing, vetting and securing partnerships?

We reached out to CEO's, partnership managers and directors for

their insights into how they are currently sourcing partners, where

their challenges lie and what they think of the future of digital

partnership sourcing. In Part 2 you will find a selection of their

feedback on these topics.

Part 2

The overwhelming response from those involved in

sourcing B2B partners and collaborators was that first

and foremost, preparation is key. No matter your

industry or business type, you need to know what

you’re looking for, in detail, before you start your search.

As you start your planning process, take the time to

assess what your primary and secondary goals are.

Additionally, you should have a realistic idea of

what your resources are – both from a human and

intellectual capital perspective. Once you have

completed your practical self-assessment, then it is

time to narrow down your business’ unique needs

and offerings along with the resources you will

need your future partner to bring to the table. This

step helps you the most in identifying the desirable

characteristics in a business partner.

One last important part to keep in mind during

your partner sourcing process: a generic online

search will yield poor results, while a more

focused search will give you a better output.

Additionally, searching for keywords like

“strategic partner” doesn’t work. The more

detailed and specific you can get, the better

results your search will yield.

I f you are unsure at this step, there are resources avai lable to help you prepare for f indingyo u r i d e a l p a r t n e r. Vi s i t h t t p : / / b l o g. p owe r l i n x . co m / re s o u rce s / f o r a l i b ra r y o f re s o u rce s.

The Sourcing Process

Preparation Is Key

Technology is changing the partner sourcing landscape. As

discussed in the earlier sections, many of those we spoke to pointed

to various digital sources for finding and vetting potential partners.

Social media networks topped the list, and online marketplaces also

came up in discussions.

An informal survey of approximately 100 professionals – all of

whom stated a direct responsibility for sourcing and managing

partnerships – pointed to digital sources as their preferred method

of finding new partners, with expos and trade conferences coming

in second. Personal referrals rounded out the top three sourcing

methods. For the first time ever, digital B2B platforms came in at

well over 50% of professionals opting to use a digital business

source to find and cultivate new business relationships.

Unsurprisingly, the majority of professionals we spoke to pointed to

LinkedIn as their primary digital source for beginning their partner

sourcing process. From those we spoke with, one of the biggest

benefits of using LinkedIn was being able to narrow down searches

based on available filters before reaching out to new prospects.

Other social media platforms were mentioned, including Twitter,

Instagram and Pinterest. However, beware these large networks, as they

do not provide thorough filtering tools. Again, this points to your

personal level of preparedness. Having the clearest picture of a potential

partner will help you fight through the crowds on social media.

Additionally, we are beginning to see a rise in popularity of business

networks outside of LinkedIn. Alibaba, Powerlinx and 6sense are all

excellent tools that help businesses focus their partnership search

on the most highly desired outcome with little manual effort

required of the member.

Few we spoke to considered traditional networking events to be

effective. While some cited trade shows as a primary source of new

partner contacts, they reported that these relationships tended to

lead to one-off deals as opposed to long-term partnerships.

Sourcing Prospects

How do you vetpotential partners?

We partner with products andservices that are going to create abetter user experience and speed upour process at the same time.

- Bill Tyndall, Head of Incubator

Relations, inDinero

I found my strategic alliance partnersthrough networking and by vettingthose vendors with whom I dobusiness already. Who do I work withwho does a great job AND serves thekind of customers I want to serve? Notall of my vendors meet both of thesecriteria and not all of those who dowant to commit to such a program.

- Elene Cafasso, President & Head

Coach, Enerpace, Inc. Executive

Coaching

Partnerships are the key to being ableto scale and grow. But unless I got toknow the partners first, carefullyevaluated them, the partnershipwould not work.

- Maria Dykstra, CMO and

Co-Founder, TreDigital

Perspectives

Vetting still remains an integral part of the

partnership sourcing process. Much like you

carefully evaluate where to place your funds, the

risks you are willing to take and the employees you

bring on, you certainly need to evaluate any

business with which you are considering entering

partnership talks. A formal, carefully planned

vetting process can help you avoid potential

partnership disaster and prevent you from wasting

precious time and resources.

Here are some things to ask yourself as you begin to

narrow down your list of potential partners:

Do they have expertise that complements mine?

Finding a partner who has an expertise that you

lack - or need more of - is an essential component

of your future success.

How good are they at communicating?

Make sure beforehand that you are comfortable with

the amount and frequency of interactions between

you and your potential partner. Do they get back to

you on time, and with thorough information? If you

have to chase after someone to get information, or if

the lines of communication often seem stalled –

even before the partnership legally begins – chances

are they won’t change after the legal documents

have been signed.

How much time have you spent discussing

a partnership?

This is a process that doesn’t happen overnight.

Take the time to properly ensure that they

understand and are in agreement with all of the

details of the proposed partnership. Be open as

well to receiving new ideas and tweaking your

original plans.

Do they have references?

If you can get them, great! Sometimes others will be

willing to vouch for someone you are considering

partnering with. If your potential partner is part of

your local community, reach out to others who you

know have worked with them in the past and talk to

them about their experience. Outsiders’ insights can

often prove to be valuable and can give you a glimpse

into what a future partnership might look like.

Trust your gut

Last, but most important - trust your gut. You’ll

know when someone isn’t the right fit for your

business. Rely on a combination of your instincts,

due diligence, and proper vetting to ensure that

you are left with a strong list of potential partner

candidates.

Vetting

Qualities to Look for in aProspective Partner

• Trust: Reliable communication and delivery;

expertise; willingness to learn from each other;

seeking ground for common success

• Compatibility: Business offerings are

complementary; company cultures mesh well;

mutual belief in the collaboration

• Transparency: Consistent sharing of progress

and data points; good communications;

dependability

• Aligned goals: Team mentality; shared vision

for the future of the partnership

Part 3

While all of this digital progress points to great

strides in moving the world of business online,

anything past a profile display is still not particularly

commonplace. A few years after the birth of

LinkedIn and other similar online business

networks, the digital business world has become

cluttered with millions of profiles, ultimately

creating a massive online directory. While it has

certainly become easier and faster to find new

connections, these connections are still too

superficial – they are connections from a numbers

sense, much like overfilling a Rolodex. Rather than

serve as valuable resources, the vast majority of

these connections do not result in new business or

partnerships. Having 5,000+ connections is meaningless

to a manager or owner of a company if none of those

connections are able to help in achieving goals.

In tandem with this, business collaborations were still

being sourced and managed predominantly offline.

While LinkedIn and other social networks excel at

allowing businesses to display information about

themselves, the process of sourcing, identifying and

vetting partners remains largely manual.

While these networks have evolved into useful

databases for finding new business connections,

business owners and executives need to move

beyond “superficial” connections. To this, the past

few years have seen the birth of business-based

connection platforms, each of which aims at

bringing more parts of the business lifecycle online.

Now the interest is in finding connections with

purpose – connections that will bear a positive

outcome for their business.

Nowadays, many are turning to digitalsources to find not just cold leads, butwarm, qualified introductions and futurebusiness partners. The rolodex is gone forgood, as modern­day companies arelooking past superficial connections, andare in pursuit of connections with purpose.

What's Next

The Future of Digital Partner Sourcing

Bryan Mattimore

Cofounder, Chief Idea Guy

Growth Engine

Katharine Contag

Founder, CEO

ColorClutch.com

LisaMarie Dias

Founder

LisaMarie Dias Designs

Andrew Royce Bauer

CEO

Royce Leather

Stephen Cunningham

EVP

Ucopia Communications

AcknowledgementsCody McGraw

Founder

SCOUT Military

Discounts

Bill Tyndall

Head of Incubator Relations

inDinero

Elene Cafasso

President & Head Coach

Enerpace, Inc.

Executive Coaching

Maria Dykstra

CMO, Co-Founder

TreDigital

Powerlinx is the leading online service connecting

businesses with new growth opportunities. Every

day business leaders around the world use

Powerlinx to find new suppliers, expand their

product lines, reach new geographical markets,

raise capital and even sell their business.

Powerlinx has matched thousands of companies

around the world, driving business growth in some

unlikely places.

Learn more about Powerlinx at

Powerlinx.com/how-it-works

Want to find out what Powerlinx can do for your

business? Email info@powerlinx.com or visit

Powerlinx.com