The "Already Invested" Trap: Why You Can't Let Go of Underperforming Partners

I once owned a 1996 Opel Vectra that should've been retired to the great junkyard in the sky.

After spending $300 fixing the transmission, the engine light came on. "Well, I've already put so much into this car," I thought. Another $400 disappeared.

A few more "just one more fix" moments later, I'd spent over $5,000 on a car worth maybe $3,000.

When it finally died (on a highway, naturally), the mechanic just shook his head. "You should've cut your losses last year."

You're probably making the same mistake with that underperforming partner right now. Like my old Opel, they keep promising 'just one more quarter' while your end-of-quarter bonus watches nervously from the sidelines.

Our brains aren't wired to write off investments, even when they're deader than my old Opel. The thought of "wasting" all that previous effort creates actual physical pain (yes, you can literally feel your quarterly targets slipping away).

Neuroscientists call this the Sunk Cost Fallacy – our irrational tendency to consider past investments when making future decisions (a phenomenon your CFO calls 'why are we still funding this?').

It's why:

• You keep investing in partners who haven't delivered results for 18 months ("We've put too much into this relationship to give up now!")

• You preserve relationships with non-performing resellers ("After all the onboarding we did, we can't just cut them loose!")

• You continue joint marketing campaigns long after the data shows they're failing ("Let's just try one more month – we've already spent most of the budget anyway")

Researchers at Carnegie Mellon discovered that the more public the commitment, the harder it is to walk away.

Think about that partner you championed to leadership last year. Now that they're underperforming, you're emotionally locked in. Cutting them loose wouldn't just mean losing the investment — it would feel like admitting a mistake (and possibly explaining it in your next review, where 'strategic pivot' sounds so much better than 'I was wrong').

No wonder that perfectly logical voice in your head saying "reallocate these resources" keeps getting shut down.

1. Frame the Pivot, Not the Failure

Instead of thinking: "I need to admit this partnership isn't working."

Reframe as: "I'm evolving our partner strategy based on what we've learned in the market."

→ You're not ending the relationship; you're transforming your approach. The psychological difference is massive (and your professional judgment remains intact).

2. Make the Choice Smaller

Instead of thinking: "I should either double down or cut them loose."

Reframe as: "What if I shifted this partner to just one product line or market segment where they've shown some traction?"

→ Shrinking the decision makes it easier to take action (and easier to explain to your leadership).

3. Celebrate the Value (Not Just the Cost)

Instead of thinking: "I've wasted $50,000 and six months on this partner."

Reframe as: "That $50,000 investment paid off in three ways: 1) We've eliminated an approach that doesn't work, 2) We've developed better onboarding materials, and 3) We've identified what actually works in this segment."

→ Focusing on what's been gained reduces your fear of "wasted" resources (and gives you something positive to report upward).

4. Let the Data Do the Talking

Instead of thinking: "I don't know how to justify shifting resources."

Reframe as: "Here's what we've invested, what we'd need to continue, and what those same resources could achieve with better-fit partners."

→ Data beats emotional attachment. When you see the numbers in black and white, your own resistance starts to crack (and you get to be the strategic thinker who optimized partnership resources).

⚠️ Reality Check: The True Cost of Holding On

The sunk cost fallacy isn't just about economics – it's about ego, identity, and our deep human aversion to admitting we were wrong.

But the most successful partnership programs aren't built on attachment to past recruitment decisions. They're built on the freedom to evolve your portfolio based on actual performance (shocking, I know).

Every hour you spend trying to salvage an underperforming partnership is an hour you can't invest in finding your next star performer.

Ready to break free from partnership paralysis? Use this AI prompt to create a data-driven plan:

Create a partnership portfolio optimization plan to help me reallocate resources from underperforming partners.

Current situation:

• Number of underperforming partners: [number]

• Time invested per partner monthly: [hours]

• Resources committed: [training/MDF/support]

• Time these partners have been underperforming: [months]

• Internal pressure to maintain relationships: [high/medium/low]

Generate a resource reallocation framework with:

1. Objective criteria for evaluating partnership ROI

2. A 30-day communication plan for underperforming partners

3. Specific "last chance" objectives that are fair but firm

4. Value extracted from these partnerships to date

5. Script for discussing partnership changes with:

   • The partner

   • Your internal leadership

   • Your team

Next time you find yourself defending a partner relationship that's clearly not working, remember it's not just about them – it's about your own psychology working against your best interests.

Because the true cost of the sunk cost fallacy isn't just the resources already spent – it's all the amazing partnership opportunities you're missing while trying to resurrect the dead.

And unlike my poor Opel, your partnership program won't leave you stranded on the highway (though it might still require some professional help to get moving again).

Now you know. Time to show!
Ann-Louise