Let’s talk numbers. U.S. startups are splurging billions on digital ads each year—especially in the tech and business services sectors. The problem? The average return on ad spend (ROAS) often falls short of our hopes and dreams. Yet, so many businesses are stuck in the cycle of pouring money into ads with not so great results because that’s the industry standard and they don’t know what else to do.
So, what if I told you there’s a way to cut your marketing budget in half and still get stellar results? Sp...
Let’s talk numbers. U.S. startups are splurging billions on digital ads each year—especially in the tech and business services sectors. The problem? The average return on ad spend (ROAS) often falls short of our hopes and dreams. Yet, so many businesses are stuck in the cycle of pouring money into ads with not so great results because that’s the industry standard and they don’t know what else to do.
So, what if I told you there’s a way to cut your marketing budget in half and still get stellar results? Spoiler: it’s all about partnering up.
Take a page from Airbnb's playbook. They didn’t just rely on traditional ads to drive their growth. Instead, they leveraged social exchange theory—basically, creating a win-win scenario by partnering with hosts who became advocates for the brand. Their referral program was a game-changer for them: in 2015 alone, Airbnb acquired 900,000 new users through referrals. This flood of new users sent sign-ups and bookings through the roof, proving just how powerful the right partners can be in driving growth.
What the Heck is Social Exchange Theory?
Alright, let’s break this down without the jargon.
Okay, here’s the deal with social exchange theory—basically, it’s all about the “you scratch my back, I’ll scratch yours” mentality, but with a fancier name. Think of it like this: people (and brands) only invest their time, money, or energy when they know they’re getting something good in return. It’s a trade-off. You give, they give back, and everyone walks away feeling like they got the better end of the deal. In the business world, this is gold. Instead of just throwing cash at ads, you form partnerships where both sides get real value. You bring them exposure, customers, whatever—and in return, they help blow up your brand. It’s the ultimate win-win situation, and honestly, way more fun than just paying for clicks.
Now, here are two real-life examples of how partnering up can transform your marketing approach:
We worked with robotics engineers and PCB designers to bring in nearly $11M for a global software company.
So, here’s the thing: if you want to tap into a niche market, you go straight to the people who own that space. That’s exactly what we did for this global software company when they decided to partner with technical influencers like robotics engineers and PCB designers. We’re talking YouTube influencers who geek out over building the coolest robots and circuit boards. The result? A YouTube campaign that didn’t just create buzz—creative a wave of people talking about this brand. With rave reviews and killer tutorials, they saw a jaw-dropping 62% jump in free trial sign-ups, netting them nearly 10,000 potential buyers. But wait, it gets better: they closed 1,746 new deals, raking in almost $11 million in extra revenue. Yep, turns out when you partner with the right people, the money follows.
Here’s another way to use partners for expansion in EdTech.
Next up, an edtech brand from Australia that wanted to get their entrepreneurial program in front of American students—big time. We found them major players (mainly teachers and principles) in a network of 169,000 schools and libraries across the country. Their program could handle up to 30 students at once for $900 per class instead of the DTC model of $6 per student, and here’s the genius part: schools and libraries could rerun the program every year with fresh faces, or even twice a year with the same group. Plus, libraries got to turn it into an after-school club. This wasn’t just a one-off—it was a sustainable, repeatable way to reach tons of students. For them, the potential result of growing with partners? Over $3 million in extra revenue and 101,400 students with life-changing entrepreneurial skills. Talk about a win-win. By connecting with these educational powerhouses, the brand won’t just make an impact—they’ll build a legacy.
So, before you dump more cash into ads that might not deliver, consider how strategic partnerships could be your ticket to cutting costs and getting to the growth that you want. With the right allies and a strategic approach, you can get better results for less.
Two questions for you to start from here:
1. Who already has the trust and influence of the people you’re trying to reach?
- What would it take to turn them into a powerful partner for your brand?
Cheering you on,
Katrina
