The power of business relationships with the host and parasites
Most companies overlook a very unique concept in marketing known as the host / parasite relationship model. This area of marketing makes everything a company achieves 100% more profitable. Host / parasite relationship models occur when two companies enter into a joint venture for mutual benefits. Basically this means that two companies are offering each other for substantial profits.
The average business spends millions of dollars to connect with consumers through advertising and marketing. Most companies want to create goodwill and develop a loyal consumer and prospect base for their products or services. The cost of converting a new customer or prospect is immense. Parasitic and host business relationships parasitize companies to attract new customers and prospects by gaining endorsement and offering incentives to clients of other companies. The parasite obtains a highly specific group of prospects based on the established agreement, while the host earns income without any cost of sales or overhead by receiving a certain percentage of the parasite’s sales. This is beneficial to both the parasite and the host.
The win-win relationship between the parasite and the host allows for different business combinations that are synergistic to open up vast areas of unrealized profit. For example, the parasite company can show the host company how to make money simply by supporting their company. The host earns money by backing another business and recoups the investments made in all business assets. The host also receives an income stream by depositing a percentage of the future sales of the parasitic company.
Consider this scenario
A real estate agent can make money after a home is sold simply by using the host and parasitic business model. Most real estate agents miss out on a ton of opportunities to earn more money after a home has been sold.
Once the escrow is closed, the owners never hear from the agent again. Real estate agents can increase their income simply by offering to organize services for new families in a city or town. The agent would prepare the family with all the necessary services and then receive a percentage of the sales from each company that sells something. The realtor at this point becomes the host by bringing businesses into the family and earning a percentage of the profits.
The host-parasite relationship means going beyond conventional sales and marketing routines and leveraging related products or services that customers need, or offering products or services to other business customers in a related industry. The cost of targeting new clients and prospects is expensive. If the host and parasite concept is used effectively, a company can target other companies that deal with its type of consumers.
