March 2007
Cheat Sheet: Developing partnerships

How to find, evaluate and cultivate partnerships to grow your show.  Plus, tips on working with your partners and structuring the deal.

By Linda C. Chandler

What makes a good partner?
• Similar or overlapping — but not duplicate — interests of attendees and exhibitors.
• Common or related industry niches but different clients, sponsors and attendees.
• Complementary strengths and skills, not competitors.
• Possibility for high impact on the show.
• Clearly articulated expectations.
• Similar approach to ethical and customer service issues.
• Willingness to trust, give full disclosure and communicate well.
• Compatible personalities of strategic negotiators and operations managers.

What types of goals can be met by partnerships?
• Opportunity for expansion into a related market.
• Growth in a new area where partner already has experience.
• Intangible values such as greater credibility, improved image, more recognition.
• Increased revenues.
• Expanded database of both exhibitors and potential attendees.

Rule of thumb
People negotiating a partnership must be senior enough to commit the business and should be willing to devote a year or more to developing the concept. Partners should attend one another’s shows, have time to develop the idea with their own constituencies and work out agreements before the first partnered event.

How to approach potential partners
• Chat informally, perhaps at an industry meeting, to plant an idea.
• Phone and set an appointment to talk about the opportunity.
• Invite a potential partner to attend your show; then follow up with questions about any interest in partnering.
• After examining the value to your show, be prepared to explain the benefits you perceive for the partner you’re pursuing.
• Get C-level buy-in first and involve managers later in working out details.
• Negotiate with a make-it-work — not a selfish, protective — mindset.

Ensuring both partners get what they expect
• Communicate. Communicate. Communicate. Recognize that cultural differences between partners will require lots of communication early in the process until each is comfortable with the other and trust is well-established.
• Keep senior management involved until the partnership is running well.
• Schedule regular meetings with all working groups involved — operations, sales, marketing, etc. — using interim reports to identify where additional work is needed to keep each partner comfortable with how things are progressing.
• Agree on content and tone of all press releases. Standardize how each partner refers to the other on Web sites, in press releases, etc.
• Decide in advance how lists will be shared, expenses allocated and goals reviewed.
• Remember that two groups’ expectations can be very different but can still be satisfied through partnership. One may want financial rewards, but another may achieve greater PR value, expanded mailing or membership lists or other “soft” benefits.

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Tips on addressing the legal issues
• Draft informal agreements for developing business and sharing opportunities.
• Consider engaging a mediator to hammer out details before bringing in attorneys, so you can jointly decide what you want the legal document to include.
• If necessary, prepare separate documents to address ownership and operational issues.
• Not everyone agrees that legal contracts are always needed for partnerships. Some say the negative, protective nature of contracts inhibits the flexibility and inventiveness of show partnerships. If financial investment, great risks or potential damage to a partner’s brand is at stake, most recommend getting an attorney involved.
• An “out” clause can be helpful if either partner decides to sever the partnership.

Case studies
• The Society of Naval Architects and Marine Engineers (SNAME)
has members and technical journals, and for-profit publisher Maritime Group has a widely circulated industry magazine. SNAME gets publicity and reaches potential new members; Maritime Groups sells booths and gets the association’s credibility. Initial challenge: Marrying the slower workings of a nonprofit association with that of the faster corporate environment. Success record: six years of partnership.

• Sporting Goods Marketing Association (SGMA), whose show is managed by Universal Events Management, is partnering this year with the Team Athletic Group (TAG), an association of major sports retailers. TAG is merging one of its annual events into SGMA’s bigger show, saving production costs, while SGMA’s exhibitors get ready access to TAG’s qualified buyers. Expected to be a win-win right out of the gate.

Plus find these related archived EXPO articles:
• Equity partners, October 2006
• Best Practices: Risk tolerant, July/August 2005
• Co-location goes mainstream, November/December 2004