The Power of Host and Parasitic Business Relationships

Most businesses overlook a very unique concept in marketing known as the Host/Parasite Relationship Model. This area of marketing makes everything a business accomplishes 100 percent more profitable. The Host/Parasite Relationship Models occurs when two businesses enter a joint venture for mutual gain. This essentially means two companies playing offer each other’s business for substantial profit.

The average business spends millions of dollars to connect with consumers through advertising and marketing. Most businesses want to build goodwill and develop a loyal base of consumers and prospects for its product or services. The cost of converting a new customer or prospect is immense. The host and parasitic business relationship allows parasite companies to garner new consumers and prospects by gaining endorsements and offering incentives to customers of other businesses. The parasite gains a highly targeted prospect group based off the established agreement while the host gains revenue without any costs of sales or overhead by receiving a certain percentage from parasite sales. This is a win-win for both parasite and host.

The mutual benefiting relationship between parasite and host allows different combinations of businesses that are synergistic to open vast areas of unrealized profit. For example, the parasite company can show the host company how to make money just by endorsing their company. The host makes money by endorsing another company and recoups the investments made in all business assets. The host also receives a stream of income by banking a percentage of the parasitical company’s future sales.

Consider This Scenario

A real estate agent can make money after a house is sold simply by using the host and parasitic business model. Most real estate agents miss out on a ton of opportunities to make more money after a house has been sold.

Once the escrow closes, homeowners never hear from the agent again. Real estate agents can increase their revenue by simply offering to arrange services to families new to a city or town. The agent would set the family up with every service in need and then receive a percentage of the sales from each company that sells something. The real estate agent at this point becomes the host by bringing companies to the family and getting a percentage of the profit.

The host and parasite relationship means going beyond the conventional sales and marketing routines and tapping into related products or services that costumers need, or offering products or services to other businesses customers in a related industry. The cost in targeting new clients and prospect is expensive. If the host and parasite concept is utilized effectively, a business can target other companies dealing with their type of consumers.

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