Business Development Secrets – 3 Business Development Strategies
– Business development is
one of the most underrated strategies when it comes
to growing your business. So in this video, I'm gonna break down three of some of the best
business development strategies the top companies are using. I'm talking about Spotify,
Netflix, Apple, Oracle. I'm gonna break it down step by step and how each of these business
development strategies work. And I'm gonna show you exactly how you can apply these
strategies into your business, whether you are at a
small-medium sized business, or even if you're working
at a large corporation and you want to make sure you watch this video until the end, because if you don't, you're
gonna waste months of your time trying all these different strategies that don't really work. So I'm just gonna give you the shortcut and show you what does work so you can get results right away. What's going on everybody,
my name is Patrick Dang.
If you are excited for this video, make sure to give it a like, subscribe and turn on notifications
and lets dive in. So the first thing we gotta do is we've got to define exactly
what business development is. And the definition that we're gonna use is the process of developing
growth opportunities and relationships with
other organizations. And we want to make sure
that these relationships are long term relationships that are a win-win on both sides. So let's go ahead and give you the first business development strategy and that's gonna be product
business development. So product business development is basically when two or
more companies work together to create a better product
for their customers.
And so to give you a better
idea of what this means, let's go ahead and give
you a real example. So the first example we're gonna use when it comes to product
business development is this company called Musixmatch. Now, Musixmatch, if you
don't know who they are, they are a backend software
that a lot of big companies use to put their lyrics, to put
song lyrics onto their app. For example, some of the
customers they have is Spotify. So if you use Spotify and you notice that when you're listening to a song, you might see the artist's lyrics and some explanation on
what those lyrics mean, Musixmatch is actually the
company behind those lyrics. So Spotify basically did a
business development deal where the Musixmatch was
able to get the lyrics of these songs and put them into Spotify. So as you can see, Spotify is a customer, Instagram is a customer, Amazon,
Apple music, Google Shazam. So all these companies that
have a music streaming service, they don't really want to
build their own software when it comes to finding all these lyrics, categorizing them and putting
the meaning behind the lyrics, because it takes a lot
of energy to do that.
Not only that, but you have
to get licensing agreements with all the big record labels to legally use these lyrics in their apps. So instead of these big companies like Apple, Spotify, and things like that, instead of them building
this out themselves, which was this gonna really
take millions of dollars to do, they can instead work with
a company like Musixmatch and just take their product
and develop it into their app. And when it comes to what
exactly these features are, like I said before, you could
display the lyrics of a song. So this is a lady Gaga song, and you can see all the
lyrics, synchronized lyrics. So it kind of plays the
lyrics as a song continues on, so you're not just
reading it like a script you're seeing it real time.
You could search by lyrics, so instead of typing in the song name, sometimes you remember the
melody, you want to type that in and boom, it's gonna show up
in the app, translated lyrics, so different languages, lyric videos. And also when it comes to the
royalty administration side, meaning, paying the record
labels for using these lyrics, they got you covered. So why would this be
product business development versus just regular sales? Well, it's not as if
like an Apple or Spotify is just gonna go to the
Musixmatch website and be like, "Okay, I'm gonna buy this." Boom done. It's a lot more complex than that because you have to talk about like, how much are you gonna use this service? How many lyrics are you
pulling every single month? What's the subscription
deal gonna be like? Is it gonna be a multiyear contract? And if it is, are they
gonna get a discount? So this is gonna be
all these complications when it comes to putting
this deal together, but not only that, once
they even buy the product, they have to integrate it
from a software perspective into their app.
It's not like you just buy
it and you just plug it in. It's like, you really have
to integrate it into the app, and it takes a lot of
engineering effort to do that. So that's why it's business development, a product business
development specifically because two entities are working together to create a better
product for the consumer. So Spotify itself is a product, and by using the resources of Musixmatch and what they have, they're gonna integrate that into Spotify, thus creating a better
product for the end consumer. So how does this relate to you? Well, if you have a product or software that can integrate very deeply with another person's product, what you can do is you can say, "Hey, I do this certain thing,
this is how I bring value. Let me try it, instead of building all
these things yourself, which I have already
invested a lot of time and resource in doing, I'm just going to work with you and we're gonna integrate
my product into your product so that your customers are more happy." And that way, so instead
of you having to find all these customers to use your product, you can find a couple key partnerships.
For example, you build a software and you integrate it with Apple then suddenly your app or
your software or product is used by millions of Apple
users, just right off the bat. So that's how you can
leverage bigger companies to get your small product, more exposure, and get more people to use it. Instead of reaching out to
thousands of small companies, you might reach out to maybe
a hundred big companies, and if you get a couple deals then it completely changes your business. And if you're a large company, you can work with smaller companies, and instead of building
your own products yourself, and developing, putting
in resources to do that, you can just work with another person that already created something and integrate it into your own product. So it's a win-win situation on both sides.
All right, so now we're
gonna move into the next type of business development strategy and that's gonna be distribution
business development. And the main example we're
gonna have is Netflix. Now, when it comes to
distribution business development, all that really means is that you're taking some kind
of product or service, and you're distributing it, meaning you're the one
that is pushing it out to your customers. So when it comes to Netflix,
I remember back in the day, when I first heard of Netflix, I saw advertisement on
TV promoting Netflix, and at the time streaming,
wasn't really a thing. So what Netflix did was, every month you would pay
a certain subscription and you would borrow three DVDs at a time, and you can exchange it whenever you want. So in the early days of Netflix, it's kind of a distribution deal, because you have all these DVDs, all these companies that have DVDs and they want to get it into
the hands of more customers, and Netflix is saying, okay, we're gonna charge a subscription, and we are gonna distribute
your DVDs to our customers.
And obviously we're gonna
pay you to use those DVDs, but we're gonna make up some money by having the service for other people, making it easy for them to rent DVDs. And now things have changed
where instead of renting DVDs, it's all about streaming. So they can take a popular movie that everybody wants to watch
and put it on their platform, and people will sign up for
Netflix just to watch that show. So if you are, let's say a TV
show or a production company, or you have a movie, you could put your movie
or TV show on Netflix, you can put it on Hulu,
you can put it on Amazon. You can put it in all
the different networks and you can make money from
all these different companies. So in a sense, you're doing distribution
business development because you're having
these other companies distribute your product.
Now, there's also exclusive distribution where Netflix might pay
you a large sum of money and they might say,
"Hey, we like your stuff, but we don't want you
to put it anywhere else because we want people
to sign up for Netflix, and because you have so many fans, they're gonna sign up for Netflix because they want to watch your stuff and it's only available on Netflix." So in that case, they're
gonna pay you a lot more money for that exclusive deal. So some examples might be Dave Chappelle. Dave Chappelle, famous comedian, went on hiatus for like 10 years, and then he wanted to
come back and do standup. So obviously if he does a Netflix deal where his content is only
available on Netflix, a lot of people are gonna sign up just to watch that stand up comedy because it's nowhere else, and they're a big fan of Dave Chappelle and he has been performing
for like 10 years. So that's an example of an exclusive business development deal.
And another quick example
that I just remembered is if you watch Joe Rogan,
the Joe Rogan podcast, it's on all different platforms,
like YouTube, Spotify, and all the different podcast platforms, and recently he just signed an
exclusive deal with Spotify, to have the podcast exclusively
on Spotify in the future. So obviously he has a huge fan base. Everybody wants to listen
to his podcast regularly. So if the only option to listen
to Joe Rogan is on Spotify, then all these people
are gonna flood Spotify.
And obviously, Joe Rogan's
gonna get a pretty good deal because it's an exclusive contract. So how does this apply to you? Well, if you have some kind
of product, service or show, and you're thinking
that you have a fan base or you know that people want it and you just need to put
it on the right platform, whether it's an Amazon, Spotify
or any other niche platform, then you can do an exclusive deal, have them pay you money to exclusively put your stuff over there. Also, if you don't want
to do an exclusive deal, you can put yourself everywhere. So these distribution companies will distribute your product or service to other people on your behalf and take a cut and you make money because they're doing
all the heavy lifting and pushing your product
or service to people you would have not otherwise reached.
All right, so now the third
type of business development that we're gonna talk about is going to be channel distribution. So Oracle is a company
that I used to work at. That's where I started my sales job. First sales job in tech, what they did was I was
an inside sales rep, meaning I worked at Oracle. I was an employee at Oracle, but what I learned is that
there are other people who are selling Oracle products, but weren't technically
employees of Oracle. There was something like contractors, or they had to deal with Oracle. So how it would work is let's say you're a consultant, let's say an IT tech consultant, and you have your own clients and you do work for them,
they pay you money, okay. Now, there's gonna be a
point where your clients might need a certain product or service, and you are in the position
to make a recommendation on what they should buy.
So if your customer
wants a certain software, and you know that Oracle
sells that software, there's other people you can
choose, but you like Oracle, you can say, "Hey customer,
I'm not an employee of Oracle, but I can sell you Oracle software and it's the one I recommend." So if that consultant sells an Oracle software to their client, then they're gonna take a
commission from that sale. And why Oracle wins is that, they have all these great
consultants and IT people basically being brand
ambassadors for their company and recommending their
products and services. So Oracle makes money because they didn't
really have to do any work to get the sale, the consultant makes money because they're gonna
recommend something anyway, so they might as well make a commission from the one they like, and they want the one they recommend, and so it's a win-win
situation on both sides. So, how does this apply to you? Well, if you're a software company or you're selling some
kind of product or service, you don't always have to be the one actively doing the selling.
You can work with other people
who will resell your product. And this is a really powerful strategy because if you can tap into
it's channel partnerships, so if you can tap into people
that already have customers and their customers are
already going to buy, if you build the relationships
with these channel partners, when the channel partners,
customers wanna buy something, you are gonna be on the top of mind because you already
built this relationship and you're willing to
give a healthy commission to the people that resell your product. And if you are like,
let's say a consultant or you're in the position where you can resell
other people's products, instead of building a product yourself, you can go to all the top companies and be like, "Hey, I love your
company, I love what you do.
I recommend your product already for free, but let's see if we can work together where if someone wants to buy
a certain product or service, I can recommend you and stand
a hundred percent behind it, but I would like a commission
for making that recommendation and getting you the sale." So it works on both ends. If you're a product creator, find these channel partnerships,
you sell your stuff. If you are in the position
where you are the seller, find the companies that
you can help promote. And it's a win-win
situation on both sides, because at the end of the day, it's all about what is
best for the customer. So if you're making the
right recommendation and you believe in the product or service that you're
selling and creating, then a customer always wins, because they are getting the
value that they've paid for.
So that is pretty much how channel partnerships are going to work. And it's not just exclusive to consulting or tech, literally anything. You can have someone sell your
product or service for you. So that said, those are gonna be the three different business
development strategies you can use to grow your business. Let me know in the comments, which one you found most valuable and how you're gonna
apply it to your business. And if you want to see
more videos like this, make sure to give this
video a like, subscribe and turn on notifications,
because I'm gonna be releasing new videos every single week.
And if you want any free
advanced sales training, I actually created a free training on how to sell anything to anyone. Make sure to click the
link in the description to get access to that
free in-depth training. And if you want to learn more
about business development and sales, I actually have
another video for you to watch, which is the difference between sales and business development. I know some of you guys
might have confusion on what each of those two are. So I created a video
just to make that clear. Make sure you check out this video somewhere on the screen then check it out. So with that said, my
name is Patrick Dang, thank you for watching and I'm gonna see you
guys in the next one..
