Most companies overlook a unique concept in marketing known as the host/parasite relationship model. This area of marketing makes everything a business accomplishes 100 percent more profitable. Host/Parasite Relationship Models occur when two companies enter into a joint venture for mutual gain. Basically, this means that two gambling companies offer each other’s business for substantial profit.
The average business spends millions of dollars to connect with consumers through advertising and marketing. Most companies want to generate goodwill and develop a loyal base of consumers and prospects for their products or services. The cost of converting a new customer or prospect is immense. The host and parasitic business relationship allows parasitic companies to gain new customers and prospects by gaining sponsorships and offering incentives to other companies’ customers. The parasite obtains a very 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 a win-win for both the parasite and the host.
The mutually beneficial relationship between parasite and host allows for different business combinations that are synergistic to open up vast areas of unrealized profit. For example, the parasitic company can show the host company how to make money simply by supporting their company. The host earns money by supporting another business and recoups the investments made in all business assets. The host also receives an income stream by depositing a percentage of the parasitic company’s future sales.
Consider this scenario
A real estate agent can make money after selling a home simply by using the host and parasite business model. Most real estate agents miss out on many opportunities to make more money after selling a home.
Once escrow is closed, owners never hear from the agent again. Real estate agents can increase their income simply by offering to arrange services for new families in a city or town. The agent would set up the family with all the necessary services and then receive a percentage of the sales from each company that sells something. The real estate agent at this point becomes the host bringing businesses into the family and getting a percentage of the profit.
The host and parasite relationship means going beyond conventional sales and marketing routines and taking advantage of 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 customers and prospects is high. If the concept of host and parasite is used effectively, a company can target other companies that deal with its type of consumers.