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Scenario: Our site is new but doing very well… however geographically our services are limited so why not link to competitors in geographically removed (non competitive) areas, e.g. people who find us on the web but choose not to bother due to geographical location rather than resuming their search click on the “partner companies” link and find the best match for them… OK it’s a link network, however, a genuine one rather than some spammy #*$!.
So you did it successfully, mind sharing how you did it?!
if so, you could offer your competitor's offerings in cities you don't service. if you are feeling adventurous, you could offer them as supplemental results in areas that you do serve. maybe feature your info prominently at top, and display their stuff below...
Forget about the money for a moment. Get the thing set up first, start generating referrers to those competitors and it's going to raise a few eyebrows. ;)
You could also "get on the horn" (the telephone) and alert those companies to your plans. You never know, it might be the next big thing in your marketing efforts. ;)