The partnership is equally important for My Virtual Model, whichstarted the relationship as a provider of custom-built Web designs.With the support and urging of Lands' End, My Virtual Model changedits business model and became a software provider. Lands' Endexecutives "are true partners on many levels," says Yona Shtern, chiefmarketing officer for My Virtual Model. "We know their outstandingcommitment is to customer service, and our solution has to becomplementary. That doesn't happen with memos; it happens when bothteams work together in unison."

One reason the Lands' End site has been profitable since 1997 is thatcompany executives don't treat the site as a new business, Bass says."We never say that traditional business rules don't apply, becausethey absolutely do," he says.

Bass says he shoots for one major partnership a year whosecontribution to the site will reset the bar on how people shop online.So far, the site as partnered with Quickdog, a provider ofpersonalization software, and EasyAsk, a search engine. Lands' Endbeta tests the new technology, and if it works, the new feature getspromoted online and in the Lands' End catalogs. But the deal isn'tfree. "We've made our partners successful, and we've given them a lotof free PR. And in return we ask for a period of exclusivity on theirtechnology and an equity investment in our company," Basssays.

Build A Relationship

Drugstore.com President and CEO Kal Raman puts it bluntly: "If wedidn't have partnerships, we wouldn't exist." When Raman wanted toknow how to make the online shopping experience better for hiscustomers, he went to a local drugstore to ask shoppers how an onlineversion of the shop could make life easier for them. "Customers cameand said they wanted the option of picking up prescriptions in-storearound the country," Raman says. "We knew we couldn't do everything onour own, so we looked for a retail partner that could help us dothat."