When two companies engage in crossmarketing or co-operative marketing, they both put their reputation at stake. Why? Because they basically recommend each other to their respective client base.
They’re not liable for each other, but if one of your clients is dissapointed because of another firm you recommended while crossmarketing, this client is more than likely to hold this against you.

How to protect yourself? I’m afraid there is no easy solution to this.

The only solution I see is to do your homework on the other firm. Contact the other firm. Talk to them on the telephone or in person if possible. Ask for samples or demo’s. Ask for client referrals. Seek if you already have any clients in common. Check them out on LinkedIn or any other social network.

When in doubt, hold off. There must be enough firms out there targetting your niche.. You can afford to be picky. After all, your reputation is at stake.

Any suggestions on how to help with the reputation issue?