Joint Ventures: What Are They And How Do They Work

Joint Ventures: What Are They? How Do They Work?

When two or more people agree to form a partnership which will mutually benefit each of them they are entering into a Joint Venture (JV for short). Many online entrepreneurs are recognizing the value of combining forces with others online to create a stronger marketing force.

Following are just a few of the benefits to be found by forming Joint Ventures:

The more exposure you have online the more products and services you will sell. When you and your JV partners share each other's built in audiences and email lists, you instantly acquire the opportunity to greatly broaden your potential buyer base which translates into greater sales.

Your new partners may possess knowledge and skills which you currently lack. By forming this type of relationship you allow for the opportunity to learn much from each other. By all means take advantage of that. The more you know, the greater your chance for success.

TIPS FOR BUILDING A SUCCESSFUL RELATIONSHIP

Joint Ventures are 'serious' relationships! Don't enter into them casually. You need to put out an honest effort to create a good, solid foundation built on trust and friendship. This will hopefully be a relationship that will last for many years and grow stronger with the passage of time. Like any stable relationship between people you need to cultivate an atmosphere of loyalty and faithfulness.

When you have found several potential JV partners and before you contact them, take the time to become familiar with their business, web site and ezine. If you can discuss their business with them they will appreciate that you are making an honest, sincere attempt to develop a partnership which will benefit the both of you. Not just you!

Your first approach to each prospect will decide the fate of your JV. You must write a strong, personalized proposal stating clearly what you feel you both could bring to a partnership and what you both could expect to achieve by joining forces. If you send an impersonal, hard sell letter you will turn your prospect off and the new JV will be "clicked" out of existence before it has the chance to get off the ground! So come from your heart when you approach a potential partner. Perhaps you would prefer to make your first contact by phone just to say hello and "meet" each other. That's perfectly fine.

When you do make contact be certain to explain right away, how working together would be beneficial to both of you. If it is all about selfish you, no one in their right mind would consider becoming your partner! Know first how YOU could help your potential partner. Then be certain to clearly explain what those benefits are. Do you have a large subscriber list that they will gain instant access to? Will you endorse your partner's products? How can you help grow your partner's business?

I'm sure that you conduct your own business with integrity and professionalism; that you treat your customers with respect and offer outstanding customer service. Be sure to treat the customers of your new JV partner in exactly the same fashion! Act responsibly. Now it is not just your own reputation which is at stake but also that of your new JV partners as well.

WAYS TO WORK TOGETHER

Here are a few ideas on how partners can work together to promote each other:

When you cross promote each others products it is important that you have tried and do believe in the product. You are not being honest if you try to promote a product that you don't believe in and that dishonesty will eventually come across in your advertising. Partner's can agree to swap ads or articles in each other's ezines or send promotional endorsements to each other's email lists. Personal testimonials can be powerful sales tools so take the time to compose a good one.

Another JV idea is to bundle your packages together. Bundling works best when the product complements yours. But, be careful that their product doesn't overshadow yours. Also, don't pile on so many bonuses that the offer becomes unbelievable. An offer too good to be true may raise doubts in the consumer's mind.

Agree to "swap" products with your partner and offer them as a prize. Give the prize away in a contest or do a random drawing to one lucky subscriber.

When your partner has a company which offers services related to yours, you can create a "Virtual Company". Your customers will enjoy the convenience of one-stop shopping. By cross promoting each other, you'll BOTH gain new customers. Don't limit yourself to partners who are close to you geographically. Remember, with fax and email your associates can be located anywhere in the world.

IN SUMMARY

The Internet has made the world a very small place indeed. Which is wonderful for you, the internet marketer! You could potentially partner with anyone, anywhere! Open your eyes to the possibilities, get excited and get to work. The world truly is "your oyster"! Have fun and have success. :-)