HomePersonalised Number PlatesPARTNERSHIPS COULD BE THE SALVATION Jayne Henry April 10, 2011 Personalised Number Plates Over 20,000 British business are expected to fail this year, but many could get a new lease of life if they pursue the many partnership and affiliate opportunities now available in virtually all sectors of the UK economy. That is the philosophy of Des Elton, CEO of one of the UK’s leading authorised dealers in cherished and personalised vehicle registration numbers. This niche activity, worth around £10 million annually in the UK, might be expected to be an early casualty in times of economic restraint – “but we are doing very nicely, thank you,” says Des Elton. “There is still a lot of disposable income around, particularly with interest rates on savings very low and most traditional investments showing a low rate of return. As a result, many retail sectors – including premium gifts and prestige brands – are still showing growth. They offer businesses which are struggling a choice of compatible enterprises doing well on which they might hitch a ride through the depression. “There are many opportunities for doing this, including various types of affiliate programmes focused on generating sales leads over the Internet. But even small businesses that do not have strong Web sites may well have a clientele that is attractive to bigger enterprises, a precious asset that can form the basis for a partnership arrangement. FREE ALTERNATIVE TO FRANCHISING “Often this is a much easier – and a free – alternative to franchising. A good partner can generate cash flow and new dimensions to a business in a mutually profitable alliance.” Des Elton has set up an information resource with a growing collection of free downloadable ebooks to foster prospective business alliances. “People may think that supplying cherished personalised number plates is such a specialist and small niche area that it has no potential for other types of business, but we can demonstrate otherwise,” he says. “When you explore what motivates our clients, you can see that they are prompted by similar reasons for purchasing number plates as those patronising florists, hotels and wedding planners, corporate gift suppliers, motor dealers, gift shops – even funeral directors and many other categories. “For example, if a business caters for weddings, christenings, anniversaries or other special events, then they have clients who could be attractive to us, because many personalised plates are purchased as commemorative gifts. DATELESS HEARSES “At the other extreme, a specialist business supplying funeral parlours could form an alliance with Speedyreg because we are a main supplier to such enterprises which brand vehicles in their fleets with numbers that are dateless and reinforce their brand identity. Many limousines, hearses and luxury coaches have dateless numbers that do not identify their vehicles’ ages.” The Speedyreg boss recommends a closer partnership alliance than is usually possible with a conventional online affiliate scheme because the rewards of a long-term developing relationship between two businesses can be far more rewarding than simply links generating sales leads. Also, a close contractual franchise situation can be too rigid in many situations and involve expenditure that is just not affordable when a business is battling to survive. LONG-TAILED RECOVERY The Industry Watch (March 2011) report by accountants and business advisers BDO LLP forecasts that UK business failures will remain above pre-economic crisis levels until at least 2015. While manufacturing industry continues to be buoyant, sectors reliant on consumer spending are more likely to experience a long-tailed recovery. “Most experts agree that we face five years of difficult times, so it is worth making a serious effort now to explore how forging new business relationships can provide long-term as well as immediate benefits,” emphasises Des Elton. “Businesses like our own which are doing well should reach out to others who are maybe not so fortunate. “For example, investment advisers and financial services have suffered because of the poor performance of equities and low interest rates on savings. We can work together with them because already some of their clients are turning to cherished numbers, the art market and other areas which are demonstrating strong investment potential. CORPORATE AND INCENTIVE GIFTS “Similarily, a florist worried about her customers economising on flowers to mark special occasions should consider how her return from those same clients can be enhanced if she suggests a personalised car number to mark the anniversary or celebration. “Corporate and promotional gift suppliers could be motivated to partner with us for other reasons. With so many traditional gifts being imported, their prices are inflated by the weak pound, while the range of such gifts is starting to look very unimaginative. Instead, a personal number plate can be an unusual and long-lasting bond-forming commemorative gift suitable for many occasions, including retirements and staff incentive programmes. “What’s more, a cherished number is entirely UK-sourced, can outlast even a gold watch, and should increase in value over the years.” BUSINESSES THAT FORM GOOD PARTNERS The SpeedyReg.co.uk Partnership Programme is aiming at websites, a business, or a social group such as a sports club, and other enterprises that involve contact with people who are, for example, sports or motoring enthusiasts, buying wedding or other commemorative gifts, taking delivery of new or used cars or motorbikes, collectors looking for attractive new fields for investment, or those buying commemorative personal or corporate gifts. “These are good prospects for partnerships with us, but our sector is just the tip of the iceberg of fruitful business partnership possibilities in the UK,” says Speedyreg’s Des Elton. “Setting up partnership and affiliate links between websites is particularly quick and easy, and can be promoted through your other business marketing communications, including advertising, brochures and advertising. “In our case we provide an automatic link from your website to www.Speedyreg.co.uk which records when you have introduced a potential client to us. If he or she goes on to make a purchase, you are credited with a 10% commission for introducing them. That could be several thousands of pounds if they buy a higher priced number, or £15 for a registration at £150, for example. There are offline ways of doing tracking commissions if a business does not have an active or busy web site. CONTROL THE RISKS “There need be no risk at all to either of the businesses involved, but you do need to be careful with any legal agreement you enter into and preferably deal only with established and properly registered businesses with permanent addresses. In the case of cherished numbers that’s easy, because the leading companies are registered with the DVLA and DVA – the official government vehicle licensing authorities in the UK. We belong also to all the official dealer bodies including the Retail Motor Industy’s Cherished Numbers Dealers Association, with its strict code of conduct. “I would suggest caution about referring your clients to businesses that require large upfront payments. Even in these tight times, Speedyreg and other established companies can offer free credit facilities with no charges until products or services are ready to be delivered. “You should seek out not just the highest commission, but those which are fully transparent. Beware of commissions calculated on what your partner defines as the ‘profit’ after deduction of costs that you cannot control or verify. “Also, beware of potential partners with only a web and email address and only a mobile telephone number. However attractive a partnership or affiliate relationship appears to be, your business and your clients should not take the risk of dealing with people who operate only ‘in the cloud’ and can disappear overnight into cyberspace!” Des Elton has agreed to answer reader questions by email – des@speedyreg.co.uk – or call him at 0845 346 4343. The web address for more information is www.speedyreg.co.uk/affiliates An independent comprehensive source of information about affiliate programmes and trends is http://www.affiliatetips.com Des Elton recommends its guide to affiliate marketing fraud for those new to this type of business alliance.
