Are strategic partnerships worth it?
Dave Berkus
CogLab UC Berkeley
Hello CogLab,
We've all had proposals of strategic partnerships, some sounding spectacularly appealing. But... Well, please read on...
Tuesday, February 10th, 2026
Are strategic partnerships worth it?
I've watched CEOs sign strategic partnership agreements many times that looked perfect on paper. And it is a recurring rule: six months later, neither company could point to a single dollar of incremental revenue.
Strategic partnerships fail more often than they succeed.
Not because the strategy was wrong, but because the execution assumptions were fantasy.
Here's what most CEOs miss when evaluating partnerships: enthusiasm is not a business model.
Before you sign anything, ask yourself three brutal questions.
First, who owns the customer relationship? If the answer is ambiguous or "we both do," you're headed for conflict. One partner needs clear ownership of the customer interface. The other provides the capability. Trying to co-own the relationship creates confusion for the customer and friction between partners.
Second, how does money actually flow? I've seen partnership agreements with elaborate revenue-sharing formulas that require three accountants and a lawyer to calculate. If the economics aren't simple and transparent, nobody will prioritize making it work. Complexity creates disputes and kills momentum.
Third, what happens when... You can Read the rest of this post on Berkus.com by clicking here...
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