Product & Startup Builder

You don't want an exclusivity deal...

Added on by Chris Saad.

You don't want an exclusivity deal

As a startup, there are very often deals that seem great but that you actually don't want.

For example, deals that include "exclusivity".

In many cases, exclusivity is death for high-growth, generally available, customer-facing software companies. Especially so for two or three-sided marketplaces.

Exclusivity can often cripple your ability to build a broad-based distribution strategy, partner with all the companies you need to partner with, and even entirely break your long-term business model.

The first way to begin diverting discussions about exclusivity with your potential "partners" is to remind them that they don't want exclusivity.

How could that be true?

Well because, presumably, they're picking your company as a partner because of the value it offers and its current and future strength in the market.

If an exclusivity deal undermines your business model and market position, then all it does is weaken your business and diminishes the value of the partnership. No one should want that - especially not your new partner.

Be careful about the deals you sign. Particularly the ones that seem great on the surface but will come back and bite you later.