The Power of Building Bridges with Your Competition

Partnering with your competition seems counterintuitive. However, forging strong relationships with your rivals can prove to be a strategic move benefiting both parties.

This article explores the many ways businesses can thrive by turning their competitors into friends -- emphasizing collaboration, mutual support, and the creation of a thriving business community.

Twenty years ago, I started getting to know a group of competitors in the Internet marketing arena here in Denver. We started putting on presentations regarding web design, paid online advertising, search engine optimization, and other things related to Internet marketing. Over the years we did probably 45 presentations together.

I’m still in touch with many of them today. One of them did Google Ads management for one of my clients earlier this year, and we are bidding together on a big SEO project.

Here are some of the benefits of collaborating with competitors:

Strategic Partnerships:

One of the most significant advantages of befriending your competition is the potential for creating strategic partnerships. By combining forces, businesses can leverage each other's strengths, share resources, and tackle challenges together. This can result in the development of innovative solutions, cost-sharing arrangements, and the ability to take on larger projects that may have been impossible individually.

Lead Sharing and Referrals:

Rather than viewing competitors as threats, consider them potential collaborators in lead generation. Businesses often encounter leads that aren't an ideal fit for their services or products. Rather than letting these opportunities go to waste, why not pass them on to a competitor who is better suited to meet those needs? This gesture fosters goodwill and can lead to reciprocal arrangements, ensuring that no opportunity is wasted within the industry. You can make agreements on paying referral fees.

Encouragement and Professional Development:

Building friendships with competitors can create a supportive environment where everyone strives for excellence. Sharing insights, best practices, and lessons learned can elevate the entire industry, benefiting the businesses involved and the customers who receive better products and services.

Joint Events and Networking:

Organizing joint events, seminars, or conferences with your competitors can be a win-win situation. These events provide a platform for businesses to showcase their expertise collectively, reach a broader audience, and establish themselves as industry leaders. Collaboration in hosting such events not only improves networking opportunities but also enhances the overall image of the industry, creating a positive perception among customers and stakeholders.

Jim Kreinbrink from Hyper Dog Media has been hosting SearchCon for the last several years (with a little break for COVID). It’s been a fun time of networking and learning things from experts here in Denver and from outside the market.

Market Expansion:

Friendships with competitors can open doors to new markets. By collaborating with businesses operating in different geographic areas or catering to different demographics, you can explore expansion opportunities that might not have been feasible on your own. This approach can lead to increased market reach, diversified customer bases, and a more resilient business model.

Friendships:

Nothing beats having someone to celebrate or commiserate with. We experience similar ups and downs in our market. And we get to enjoy some hugs and laughs when we run into each other at industry events.

Of course, don’t jump into these relationships automatically. Take time to get to know these people and the work their company does. Maybe they aren’t that great at what they do or are sketchy in their practices.

I partnered with a company that didn’t do SEO (my expertise at the time) so we agreed to bid together to do ongoing SEO for one of their clients. I helped put together the proposal with me and there was the expectation that I would be doing the work. I assumed that didn’t win the project but found out a couple of years later that had won it and did the work in-house (even though they weren’t good at it). Greed can do bad things to people.

In the competitive landscape of business, building friendships with your rivals might seem unconventional, but it holds the potential for tremendous benefits. By fostering collaboration, sharing leads, encouraging each other's growth, and organizing joint events, businesses can create a more dynamic and supportive industry environment.

In the end, the success of one doesn't have to come at the expense of another, and a thriving business community benefits everyone involved. So, don't shy away from making friends with your competition – it could be the key to unlocking new opportunities and taking your business to new heights.