Magnus Marketing Blog

Every business talks about being a partner: "we will partner with you", "we are your partner", etc. But, what is being a real partner? A partner is someone who shares risk and reward and is also a part of the business - in many ways, employees which are resources to the company are partners in the overall company. I thought I would provide an illustrative example of partner vs. vendor in a business relationship:

Example 1: Worked with a client that had a small business and quickly became an integral part of the company. In addition to working directly with the key executive, the relationship grew from just transactional to being part of the family - literally. Cards were exchanged at the holidays, photos of children shared, and well wishes on birthdays. From a business perspective, open discussions ensued, new ideas launched, and I usually was paid 15 days earlier than the contract stipulated. Business really was done on a handshake and it was a very nice family oriented scenario.

Example 1B: The client's small company was acquired by a much larger firm. Whereas I NEVER was referred to as a "vendor" suddenly, I became one - called "vendor" not only by the purchasing/accounting department, but also my new *supervisor* the VP of Sales. The relationship was strictly transactional and very impersonal with reports being exchanged, meetings occurring every Friday to discuss activity, and more directives issued. Payment terms were now changed in favor of the company and they paid me "on time" or later. The company couldn't care less about me personally, professionally, or otherwise - I was just a vendor providing services. (Even though I am an independent contractor and outsourced employee). They couldn't care less.

A vendor is basically a replaceable number, a supplement, and just there as a transactional resource. In employee terms, it is a boss who says "I pay your salary, you do XYZ". In company relationship terms, it is a client who says, "I pay your fees, you provide XYZ". There is no *real* relationship, no recognition of value or higher level potential - it is transactional. A partner however, is viewed as a valued resource providing not only skills or expertise, but also relationship to the company. A partner shares stories about kids or what was done on the weekend, works together to accomplish goals, and respects and values the other party - you grow together as a business.

Most of my clients are partners, which is what I like and expect - I like to be part of the company and work with the people as an "outsourced employee". Any other way, quite frankly is demotivating and contrary to achieving success.