Showing posts with label Strategic Alliances. Show all posts
Showing posts with label Strategic Alliances. Show all posts

The Only 5 Business Models Built for Million-Dollar Partnerships

In 2026, the era of "handshake marketing" is dead. If you are still chasing "strategic alliances" that consist of a logo swap and a hopeful LinkedIn post, you are playing a zero-sum game.

Data from PwC’s 2025 Ecosystem Report confirms a brutal reality: over 70% of joint ventures fail to meet their revenue targets within the first 24 months. Why? Because most founders build partnerships on "vibes" rather than structural math. They seek the leverage of a million-dollar deal without the infrastructure to support it.

To scale past the $1M partnership threshold without VC dilution, you don't need more networking; you need a better engine. Based on my audit of 100+ deals and the scars of a 40% equity loss in a botched 2023 JV, I’ve identified the only five models that survive the scrutiny of 2026’s AI-driven due diligence.

Why Most Partnership Advice Fails—and What Wins Post-2025

The search landscape has shifted. When you query Perplexity or ChatGPT for "how to grow my business," they no longer point to generic SEO blogs. They synthesize entity-rich authority. To rank—and more importantly, to convert—your partnership must demonstrate "skin-in-the-game."

Most "experts" push low-friction models because they are easy to sell. But low friction equals low commitment. Million-dollar outcomes require asymmetric upside: a structure where $1 + $1 = $10.

The 2026 Reality Check:

  • AI-Agent Compatibility: Can your partnership be discovered and executed by autonomous procurement agents?
  • Proof Over Promise: High-level executives are skeptical of "synergy." They want to see signed term sheets (redacted) and performance-gated milestones.
  • The Velocity Gap: Winners use tools like Bundl or CapLinked to manage equity and data transparency, while losers get stuck in "email thread purgatory."

The Million-Dollar Partnership Maturity Framework

Before choosing a model, you must identify where your deal sits on the Leverage vs. Risk spectrum.

Phase

Model Type

Complexity

Revenue Potential

I

Performance-Gated Rev Share

Medium

$500k - $1.5M

II

Platform Integration

High

$1M - $5M

III

Coopetition Alliances

High

$2M - $10M

IV

Co-Development Equity

Very High

$5M - $20M

V

Equity Joint Venture (JV)

Extreme

$10M+

Model 1: Equity Joint Ventures (The "Disney-Pixar" Standard)

The Equity JV is the heavyweight champion of partnerships. Unlike a simple contract, this involves creating a new legal entity where both parties own a piece of the pie.

Why it works: It forces alignment. When Tesla and Panasonic invested over $30M into the Gigafactory, they weren't just "collaborating." They were tethered. If the venture failed, both lost blood.

The 2026 Play: Use this when you have a proprietary technology (AI, Biotech, SaaS) but lack the distribution of a legacy titan.

  • The Trap: Avoid "equal 50/50" splits without a tie-breaking vote. I’ve seen 7-figure deals paralyze because neither founder could fire the other.
  • The Win: Use a "Buy-Sell" agreement from day one to ensure a clean exit path.

Model 2: Performance-Gated Revenue Share

Forget flat referral fees. Million-dollar partnerships in the B2B and agency space now rely on tiered performance gates.

The Framework:

  • Tier 1: Base 10% for lead generation.
  • Tier 2: 20% once $500k in closed-won revenue is hit.
  • Tier 3: 30% + Board Observer rights at $2M.

This model mimics the Influence Media Partners approach to music rights: the more value you extract from the asset, the more of the "tail" you own. It protects the host from overpaying for low-quality leads while giving the partner a massive incentive to "go all in."

Model 3: The "Coopetition" Alliance

In a crowded market, your biggest competitor might be your best partner. Microsoft and GE Healthcare proved this by co-developing "Caradigm." They competed in software but joined forces in population health analytics.

Why it’s Viral-Ready: It’s contrarian.

By sharing R&D costs for a non-core feature, both companies reduce "burn" while capturing a new market segment. In 2026, we see this in OpenAI enterprise integrations—competitors are nesting their proprietary data within shared LLM frameworks to provide a superior end-user experience.

Model 4: Platform Integration Partnerships

If you build on top of an ecosystem (Salesforce, Shopify, or the ChatGPT Store), you aren't just a vendor; you are an extension of their value proposition.

The "Spotify-Uber" Effect: By integrating Spotify into the Uber app, both companies increased "stickiness." For a million-dollar deal, your integration must move the needle on the host's North Star Metric.

  • Example: A specialized AI auditing tool integrating into a major accounting firm’s ERP. The firm gets a 1.7x faster time-to-market (a key BCG stat for ecosystem leaders), and the tool gets a multi-million dollar licensing floor.

Model 5: Co-Development Equity Deals

This is the "Intel Inside" of the modern era. You provide the "ingredient," they provide the "cake."

Unlike a JV, you don't form a new company. Instead, you receive equity in the product line or the parent company in exchange for your IP. This is how Pfizer and BioNTech dominated the vaccine market. BioNTech had the mRNA tech; Pfizer had the clinical trial and distribution muscle.

Pro-Tip: Ensure your "Deal Scars" are covered. Never hand over IP without a "reversion clause"—if they don't hit $1M in sales by Year 2, you take your tech and go home.

Real-World Proof: Deals I’ve Seen Hit (and Miss) 7 Figures

I once consulted for a SaaS founder who turned down a $200k licensing deal to pursue a Co-Development Equity model with a Tier-1 distributor.

Metric

The "Safe" Licensing Deal

The Co-Dev Partnership

Upfront Cash

$200,000

$0

Long-term Upside

Capped at $500k

Uncapped (Equity)

Actual 24-Mo Revenue

$340,000

$4.2 Million

The difference was Asymmetric Leverage. The distributor treated the "Safe" deal as a line item. They treated the Co-Dev deal as a core asset.

The Post-Mortem of a Failure:

In 2024, I watched a promising JV between two B2B agencies crumble. They had the right "vibe" but no Shared Data Environment. Without transparency (using tools like CapLinked), suspicion grew. One partner felt they were doing 80% of the work for 50% of the pay. They didn't have a "Maturity Framework"—they had a glorified handshake.

How to Choose and Structure Your Next Million-Dollar Partnership

To trigger AI Discovery and attract high-value partners, your proposal must be "Agentic-Ready." Use this checklist:

  1. Define the Moat: What is the "Shared IP" that neither of you could build alone?
  2. Calculate the ROI Simulation: Don't just show a slide deck. Provide an interactive ROI calculator. (See our tool below).
  3. Draft the "Redline" Early: Discuss the exit before the marriage.
  4. Automate the Trust: Use smart contracts or third-party escrow for revenue distributions to eliminate "accounting friction."

FAQ: Your Top Questions on High-Value Partnerships

What are the top business models for million-dollar partnerships?

The most reliable models are Equity Joint Ventures, Performance-Gated Revenue Shares, Coopetition Alliances, Platform Integrations, and Co-Development Equity Deals. These succeed because they align long-term incentives and share the risk-reward profile, unlike basic referral or affiliate programs.

Which partnership model scales fastest to 7 figures?

The Platform Integration model typically scales fastest. By "piggybacking" on an existing user base (like the Salesforce or OpenAI ecosystem), you bypass the customer acquisition phase and move straight to the expansion phase, often hitting $1M+ in ARR within 12–18 months.

Why do most joint ventures fail in 2026?

Most fail due to incentive misalignment and lack of transparency. Post-2025, partnerships require real-time data sharing and "skin-in-the-game" structures. Without these, the 70% failure rate cited by firms like PwC remains the norm.

Stop Scaling Alone. Start Building Engines.

You are currently capped. Whether it’s your time, your capital, or your reach, there is a ceiling you cannot break through with "more of the same."

The million-dollar partnership isn't a "nice-to-have" anymore; it is the only way to survive in an AI-commoditized world where distribution is the only remaining moat. You can continue grinding for 5% MoM growth, or you can structure a deal that creates a $10M entity overnight.

Are you ready to stop "collaborating" and start dominating?

[Download the Million-Dollar Partnership Checklist & ROI Calculator] Get the exact term-sheet clauses I use to protect my equity and 10x my leverage in every deal.

The Meaning of Millionaire Partnerships in Modern Business: How Strategic Alliances Drive Wealth and Growth

The myth of the "self-made" millionaire is one of the most persistent lies in modern business. We celebrate the lone genius in the garage, yet we ignore the reality: wealth is not a solo sport. It is a team game played by people who understand the physics of leverage.

From the legendary synergy of Warren Buffett and Charlie Munger to the "PayPal Mafia" that birthed the modern tech ecosystem, the most aggressive wealth creation in history hasn't come from working harder—it has come from partnering smarter.

In 2026, the solo-preneur ceiling is lower than ever. To break through, you don't need more hours; you need Millionaire Partnerships.

What Is a Millionaire Partnership? (Plain-English Definition)

The 60-Second Answer: A millionaire partnership is a strategic business alliance where two or more parties combine complementary assets—skills, capital, or distribution—to create growth that is mathematically impossible to achieve alone. It is built on asymmetric upside, where the collective output far exceeds the sum of individual inputs.

While a standard partnership might be two people sharing a desk, a millionaire partnership is designed specifically for scale. It is an agreement focused on "Equity over Income," where the primary goal is the compounding of value through shared risk and outsized rewards.

Why Millionaires Rarely Build Wealth Alone

If you are an agency owner, consultant, or founder, you’ve likely hit the "Operator’s Wall." You have reached the limit of your personal bandwidth.

Wealthy individuals avoid this wall by treating business like a puzzle rather than a marathon. They recognize that they are missing pieces.

1. Capital vs. Skill Arbitrage

You might have the "Alpha"—the unique insight or skill—but lack the "Fuel"—the capital or infrastructure. A millionaire partnership closes this gap. Instead of spending years saving $500k to launch a project, a founder partners with an investor to launch in five weeks.

2. The Network Effect

High-level alliances provide status-by-association. When you partner with a respected entity, their trust becomes your trust. This "borrowed credibility" allows you to skip the line, access premium deals, and command higher prices immediately.

3. De-risking the "Single Point of Failure"

Solo builders face 100% of the risk. In a strategic alliance, risk is distributed. More importantly, the diversity of perspective prevents the "founder blindness" that leads to catastrophic legal or financial errors.

The M.P.L.A. Framework: The Architecture of Wealth Alliances

To differentiate a high-value alliance from a "handshake disaster," we use the M.P.L.A. Framework. This is the proprietary standard for evaluating whether a partnership has millionaire potential.

🔺 Multipliers (Skills, Capital, Distribution)

A partnership shouldn't be 1+1=2. It should be 1+1=11.

  • Skills: If you are a product visionary (The Steve Jobs), you need a technical engine (The Steve Wozniak).
  • Capital: Access to liquidity to move faster than the market.
  • Distribution: A partner who already owns the attention of your target audience.

🔺 Positioning (Status, Credibility, Access)

Who does this partner make you become? A millionaire partnership should elevate your brand. If the alliance doesn't open doors that were previously locked, it’s just a job with a witness.

🔺 Leverage (Other People’s Resources)

The goal is to decouple time from money. Millionaire partnerships leverage OPT (Other People’s Time) and OPN (Other People’s Networks). You are looking for a partner who brings a machine you can simply plug your talent into.

🔺 Alignment (Incentives > Trust > Contracts)

Trust is a feeling; alignment is a structure. The most successful alliances succeed because the incentives are "anti-fragile." If the partner wins, you win. If the partner loses, you lose. When incentives are perfectly aligned, the need for micromanagement disappears.

Real-World Examples: Success vs. Disaster

The Win: Berkshire Hathaway

Warren Buffett provided the capital and the analytical framework, while Charlie Munger provided the psychological discipline and "mental models" that pushed Buffett beyond his early limitations. Their partnership lasted over half a century because their incentives were perfectly aligned toward long-term compounding.

The Disaster: The "Equity Handout"

A common mistake for agency owners is giving away 50% of their company to a "co-founder" who only brings a similar skill set. This isn't a partnership; it’s a redundancy. Without complementary multipliers, the partnership eventually implodes under the weight of diluted profits and conflicting egos.

How Strategic Alliances Multiply Wealth Faster

In the modern digital economy, growth is non-linear. Strategic alliances act as a "wormhole" in the business journey.

Solo Growth Path

Millionaire Partnership Path

Incremental revenue increases

Exponential equity jumps

High personal "burnout" risk

Shared operational load

Linear networking

Instant access to "closed" ecosystems

Slow brand building

Rapid "Authority Transfer"

By leveraging Joint Ventures (JVs) or Revenue-Sharing Models, businesses can test new markets without the overhead of hiring. You aren't buying a team; you are renting an ecosystem.

Risks, Failures & Partnership Killers

We must address the elephant in the room: Most partnerships fail. But they don't fail because partnerships are bad; they fail because of poor engineering.

  • The "Vibe" Trap: Choosing a partner because you like them, not because they fill a gap. Friendship is a terrible foundation for a multi-million dollar equity split.
  • Undefined Exit Strategy: If you don't know how the partnership ends, it will end badly. Millionaires plan the divorce before the wedding.
  • Asymmetric Effort: When one partner provides 90% of the value but only gets 50% of the reward. This creates resentment, the ultimate silent killer of wealth.

How to Structure a High-Value Partnership Safely

If you are ready to move from solo operator to strategic partner, you need a technical roadmap. Do not rely on a "handshake."

  1. Draft a Memorandum of Understanding (MOU): Outline roles, expectations, and the "Non-Negotiables" before spending a dime on legal fees.
  2. Define the Vesting Schedule: Use tools like Carta to manage equity. Never give away large chunks of your company upfront. Equity should be earned over 3–4 years to ensure long-term commitment.
  3. The "Buy-Sell" Agreement: Hard-code what happens if one partner wants out, dies, or becomes incapacitated.
  4. Use Modern Legal Tech: Standardize your agreements through DocuSign or specialized legal platforms to ensure your Intellectual Property (IP) is firewalled.

Are Millionaire Partnerships Right for You?

Ask yourself these three questions:

  1. Is my growth capped by my own hours?
  2. Do I lack a specific "superpower" (capital, tech, or sales) required to reach the next tier?
  3. Am I willing to own 50% of a $100M company rather than 100% of a $1M company?

If you answered "Yes" to all three, you are no longer a solo founder. You are a dealmaker in waiting.

High-Intent FAQ

Q: Are partnerships the fastest way to become a millionaire?

Yes. While solo efforts can build a comfortable living, partnerships allow for resource stacking. By combining capital, existing audiences, and specialized talent, you can scale a business to a seven or eight-figure valuation in a fraction of the time it would take to build those assets from scratch.

Q: What is the ideal equity split in a millionaire partnership?

There is no "perfect" number, but the "Equal Split" is often a trap. Equity should be based on Relative Value Contribution. Use a "Grinding" vs. "Funding" model where the active operator and the capital provider have clear, performance-based milestones to unlock their shares.

Q: How do I find a high-level business partner?

High-value partners aren't found on job boards; they are found in high-proximity environments. Look to investor networks, elite masterminds, or industry-specific ecosystems like Y Combinator or LinkedIn's executive circles. Demonstrate your "Multiplier" first to attract theirs.

Q: What are the legal risks of a strategic alliance?

The primary risks include "Joint and Several Liability" and IP theft. This is why a formal Partnership Agreement or LLC Operating Agreement is mandatory. Always ensure your personal assets are shielded from the partnership's liabilities.

Q: Can a partnership work without 50/50 ownership?

Absolutely. In fact, many of the most successful "Millionaire Partnerships" are structured as 70/30 or 60/40 to ensure there is a clear "Tie-breaker" or lead decision-maker.

The Path Forward: From Operator to Architect

Stop looking for more work and start looking for more leverage. The difference between a $100k consultant and a $10M agency owner isn't the quality of their work—it’s the quality of their alliances.

The world’s wealthiest people aren't the smartest people in the room; they are the people who built the best rooms. They understand that alignment beats effort every single day.

You have the skills. You have the ambition. Now, you need the Multiplier.

Your next level of wealth isn't hidden in a new "hack" or a longer workday. It is hidden in the person you haven't partnered with yet.

Ready to audit your partnership potential?

[Download our Partnership Readiness Kit] to evaluate your current alliances and identify the "missing multipliers" in your business today. Don't build a cage for yourself—build an empire with others.

7 Rules for Strategic Alliances That Create Permanent Wealth

Strategic alliances create permanent wealth when they combine asymmetric leverage, aligned incentives, and long-term trust into repeatable relationships that compound beyond individual projects. Unlike short-term partnerships, these alliances are governed by rules that prioritize equity, distribution, and time over effort—which is why the world’s wealthiest individuals rarely build alone.

If you are currently trading your hours for dollars, or even your brilliance for a flat fee, you aren't building wealth; you’re just a well-paid operator. Permanent wealth—the kind that survives market cycles and outlives your daily involvement—requires a shift from individual output to relational leverage.

Why Strategic Alliances—Not Hustle—Create Permanent Wealth

The "hustle culture" lie suggests that if you just work harder, you will eventually break through. But the math of the self-made billionaire tells a different story. Whether it’s the 50-year partnership of Buffett and Munger or the interconnected web of the PayPal Mafia, the most significant wealth isn't generated by a solo genius. It is generated by an alliance of specialized talents that creates a "1 + 1 = 11" effect.

Most entrepreneurs fail because they view partnerships as a way to fix a weakness. They hire a "marketing person" or find a "tech co-founder" out of desperation. A strategic alliance is different. It is an intentional choice to merge assets—distribution, capital, or intellectual property—to capture a market that neither party could touch alone.

"Wealth is the ability to fully experience life. Strategic alliances are the vehicles that get you there without burning out at the steering wheel."

The P.A.C.T.S. Alliance Framework™

To filter the "noise" from the "deals," I use a proprietary system called the P.A.C.T.S.Model. If a potential partnership doesn't hit at least four of these pillars, I walk away.

  • P – Power Asymmetry: Does one partner bring a "superpower" (like a massive audience or proprietary tech) that the other cannot replicate?
  • A – Aligned Incentives: Is the upside structured so both parties win only when the project wins? (Equity > Fees).
  • C – Compounding Trust: Is this a person you would work with for the next 20 years?
  • T – Time Horizon: Does this deal have a 10-year shelf life, or is it a "quick flip"?
  • S – Scarcity of Access: Is this an exclusive opportunity that creates a moat?

Rule #1: Only Form Alliances With Asymmetric Leverage

If two people with the same skill set partner up, they haven't created an alliance; they’ve created a committee. Strategic wealth requires asymmetric leverage.

One partner should bring the Engine (product, operations, code), and the other should bring the Fuel (distribution, capital, brand). Think of the relationship between an author and a publisher, or a SaaS founder and a strategic VC like Andreessen Horowitz. The founder brings the innovation; the VC brings a "network effect" that accelerates the product into the stratosphere.

What Asymmetric Leverage Looks Like in Real Deals

I once turned down a 50/50 partnership with a fellow consultant. We had the same skills and the same network. It felt "safe," but it offered zero leverage. Instead, I partnered with a media company that had 500,000 subscribers but no backend product. I provided the product; they provided the "instant" market. We did more revenue in three months than I had done in the previous two years.

Rule #2: Optimize for Equity, Not Revenue Share

Revenue shares are for affiliates; equity is for allies.

When you take a percentage of the top line, you are a line item on an expense sheet. When you own equity, you own a piece of the future. Wealthy individuals like Naval Ravikant argue that you cannot get rich renting out your time. Similarly, you cannot build permanent wealth by renting out your services to a partner.

Alliances that create wealth focus on capital gains. If you are providing a service that builds a brand, you should be negotiating for a stake in that brand’s terminal value.

Rule #3: The "Long-Term Games With Long-Term People" Test

The greatest cost in business is the Trust Tax. When you don't trust your partner, you spend half your energy on contracts, monitoring, and legal protection.

Ray Dalio emphasizes "radical transparency" in his alliances. If you cannot see yourself working with someone for a decade, do not work with them for a day. Permanent wealth is built on the "compounding interest" of relationships. The first five years of a partnership often yield linear growth; the hockey stick happens in year ten, after the trust is so high that decisions happen at the speed of thought.

Rule #4: Align Incentives to Avoid the "Operator Trap"

Most partnerships fail because one person feels they are doing "all the work" while the other "just has the idea." This is the Operator Trap.

To create a permanent wealth system, the incentives must be proportional to the value, not the effort.

  • The Operator is compensated for their time (salary/draw).
  • The Allies are compensated for their risk and assets (equity).

If you don't separate "labor" from "ownership," resentment will kill the alliance before it reaches scale. Use a vesting schedule—even for founders—to ensure that everyone earns their seat at the table over time.

Feature

Strategic Alliance (Wealth-Focused)

Casual Partnership (Income-Focused)

Primary Goal

Asset Appreciation

Monthly Cash Flow

Duration

10+ Years

Project-based

Compensations

Equity & Carry

Fees & Rev Share

Exit Strategy

Sale, IPO, or Legacy

Dissolution

Rule #5: Prioritize Distribution Leverage Over Product Innovation

In the age of AI, "product" is becoming a commodity. Code is cheap. Content is everywhere. What is scarce? Trust and Attention.

A strategic alliance that grants you "Scarcity of Access" to a specific audience is worth more than a better mouse-trap. This is why Blackstone buys real estate portfolios rather than single houses. They aren't looking for a "deal"; they are looking for a distribution system.

If your alliance doesn't solve the "How do we get this in front of 1 million people?" problem, it isn't strategic; it’s just more work.

Rule #6: Build in "Negative Safeguards" (The Pre-Mortem)

The wealthy don't just plan for success; they architect for failure. Before signing an alliance, perform a "pre-mortem." Ask: "It’s three years from now and this alliance has collapsed. Why did it happen?"

Common culprits include:

  1. Lifestyle Creep: One partner wants to pull cash out, the other wants to reinvest.
  2. Ego Expansion: One partner starts taking all the credit in the press.
  3. The "Slow Drift": One partner stops evolving while the business grows.

Address these in your Buy-Sell Agreement from day one. Knowing how to exit is what gives you the confidence to go "all in."

Rule #7: Maintain "Optionality" Through Silent Alliances

Not every alliance needs to be public. Some of the most profitable deals are "silent" partnerships where one party provides the capital or the "intellectual moat" while remaining invisible.

This creates Optionality. It allows you to build multiple streams of permanent wealth without being "the face" of every brand. Think of Reid Hoffman and his role in the "PayPal Mafia." He wasn't the lead in every company, but he was the connective tissue—the strategic ally—in dozens of them.

Why Most Partnerships Fail Before Year Three

Most collaborations die in the "Trough of Sorrow." They fail because they were built on excitement rather than rules. When the initial "honeymoon" phase ends and the real work begins, the lack of a framework leads to friction.

The P.A.C.T.S. model prevents this by ensuring that the partnership is rooted in math and long-term incentives, not just a "good vibe" at a networking event. If the incentives are aligned, the partners don't need to be best friends; they just need to be rational actors pursuing the same mountain peak.

How to Evaluate a Strategic Alliance in 30 Minutes

Ask these three "Filter Questions":

  1. Does this partner have "Proof of Work" in a long-term relationship elsewhere? (If they’ve burned every bridge they’ve crossed, you aren't the exception).
  2. Can this alliance scale without me working more hours? (If not, it’s a job, not an alliance).
  3. What is the "Minimum Viable Trust" required to start? (Can you do a small test deal before the "marriage"?).

FAQs: Strategic Alliances & Wealth Creation

What makes a strategic alliance different from a partnership?

Strategic alliances prioritize long-term leverage and compounding trust over short-term profit. While a partnership might be a simple joint venture for one project, an alliance is a structural relationship designed to repeat across multiple opportunities over decades.

Is equity always better than a revenue share?

For wealth creation, yes. Revenue share is taxed as high-income and ends when the contract does. Equity represents ownership of an underlying asset that can be sold, borrowed against, or passed down, offering significantly better tax advantages and long-term upside.

How do I avoid being "used" in a collaboration?

By ensuring Power Asymmetry. If you bring something to the table that is truly scarce—whether it's a specific technical skill, capital, or a unique relationship—you have leverage. If you are easily replaceable, you are at risk. Never enter an alliance where you are the "commodity" part of the equation.

The Path to Permanent Wealth

You are one alliance away from a completely different financial life. But that alliance won't be found by "networking" at local meetups or trading LinkedIn endorsements. It will be found by identifying where your asymmetric leverage meets someone else’s scarcity of access.

Stop trying to be the smartest person in the room. Start trying to be the best-allied person in the room. Wealth is not a solo sport; it is a game of high-stakes, high-trust cooperation.

Ready to audit your current circle?

Download our Strategic Alliance Scorecard to evaluate your current partnerships and see if you’re building a legacy or just a lifestyle. Don’t spend another year as a "solo operator" while the world’s wealth is built through leverage.

[Join the Deal-Maker Inner Circle →]

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