Joint Ventures: What the? Why me? How to?
by Anthony Davenport
What is a Joint Venture?
This is the ultimate in free advertising. If you have either a 'killer' product or a decent size list you can profit greatly from this method of marketing. Now, you should know that a joint venture can be executed by anyone who has anything of value to offer, and not just those with great products and targeted responsive lists. However, my focus for this article will be just on eProducts and lists, since that is the main focus of my own business.
A Joint Venture is a situation where two or more Business owners team up one another's resources to create new streams of Profits, which otherwise would be too expensive for a single business to attain alone.
You can find this business marketing structure anywhere, for some businesses rely heavily on this method in order to profit.
A great example I like to use:
You see, my Love's FAVORITE place to shop is Wal-Mart Super Center, if we could afford it she would buy the whole store ^_^. Now when you walk into Wal-Mart what do you see?
Groceries, Electronics, Movies, Furniture, Clothes etc. You name it, they got it....Did you realize that all Wal-Mart's products are arranged on their shelves through some kind of joint venture with the manufacturers of the products? You see with this set-up both Wal-Mart and the manufacturers are profiting.
The manufacturers have a place to show case their products and sell them, and Wal-Mart earns a portion of the sale for owning the store that shelves the products. You see - 'win-win'.
But, what really catches my eyes now-a-days is you start to see lots of little outlet stores inside Wal-Mart. Just today I was there and I saw an Arcade, a Hair salon, a bank, and a McDonalds.. ALL IN ONE STORE.
Talk about 'win-win' For everyone:
Parents come to Wal-Mart to shop, and they can leave their kids at the Arcade to play video games so they can shop in peace ^_^. This way the Arcade makes money along with Wal-Mart
Now Mothers with hungry kids can just go to the built in McDonalds to feed the 'munchkins' and will not be in such a rush shopping. So Wal-Mart will get more products purchased because the mother will stay longer, and McDonald's make money from selling them food.
And the hair salon makes their money from the daughter who wants to get her hair done while the mother looks for a new toaster and vacuum. You see Joint ventures are all around us, and they profit all that are involved..
All the built in stores inside Wal-Mart profit from the High Traffic environment, and because of these built-in stores Wal-Mart's customers stay longer subsequently buying more products. So now that you see how this works and how it benefits everyone
involved.. Lets move on.
Why should this concern you?
Because you are an eBiz owner marketing to make profits, that's why! You see If you set up a Joint venture to where you are the one endorsing someone else's QUALITY-Targeted product to your list, this will:
*If you already have a strong relationship with your list this will let you 'cash-in' on the respect your list has for you.
*Build better Rapport with your list because you are offering them MORE value, and they will associate YOU with Great products/services...so when you have another Promo mailing they will be more open to your offer.. ..hence more profits for you in the long run.
*Most importantly for younger eBusinesses, offering a QUALITY-Targeted product/service to your current list will most definitely ESTABLISH your CREDIBILITY. This should be one of your FIRST priorities when you are starting out.. ..remember you are in this for the long haul.. so do this early on and it will pay you countless times over in the future.
*Give you nothing but PROFITS, since you are Marketing a QUALITY-Targeted product/service to your list that cost you ABSOLUTELY NOTHING to create, Market or deliver. All you do is plug in your partner's Ad and press "send" to your list.. ...then wait for your check. EASY HUH? And when you make money your partner makes money 'win-win'
Note: In order for this to happen, you must make sure the product you are promoting is a QUALITY product and OVER DELIVERS on what your subscribers expect...remember 'crappy product-crappy sales-crappy reputation' So choose who you partner with carefully.
Ok, But I donít have a list (or a big enough one yet), so why should I care about this now?
Well, for you this is the PRIME marketing and profiting opportunity.
Provided you have a QUALITY product for a certain targeted market, find a competitor that has a large list ("If you can't beat them join them" ^_^). Contact them and propose a joint venture with them, make the offer irresistible.
Once they say yes, you all of a sudden have "x" amount of potential customers and SUBSCRIBERS:
*Offer your QUALITY-Targeted product to his list, then you split the profits usually 50/50..but I suggest a 40-you/60-them...because with out his/her cooperation you would not have access to these potential sales/profits.
* Now when you write your ad to be placed in your partners mailings make sure to put a "sig file" at the end that has the address to your
*Doing this not only opens the door to a flood of potential sales, but potential subscribers too, and if your QUALITY product OVER DELIVERS, then the prospect will know it was your product and you will have a base of Positive energy to build on.
*your QUALITY product will build your CREDIBILITY, and when this happens your list will grow amazingly fast, shortly after the promotion was mailed out. This is vital for your eBiz. Because now you can start to send them other promotions you have and they will look at it with an open mind because they had a great buying experience the first time with you. So that means MORE SALE to keep you in business!
*and the best part is that all your advertising cost...was $0!! so its ok if you got cut the smaller percentage of sales.. ..no matter what happens YOU CAME OUT AHEAD.
---Note: In order for this to happen, you must make sure the product you are promoting is a QUALITY product and OVER DELIVERS on what your JV partner's subscribers expect.. Remember "
---------crappy reputation (for both you and your partner)"
So choose what you market via Joint Ventures carefully, if the product is crap, you are messing up not only your business, but your partners as well. Beware, This has a tendency to bite you back in the butt big time.
How to go about getting a Joint Venture started?
First thing is you must find a Joint Venture partner. Just to let you know this is going to take some time and research. So be prepared to "Put in Work" if your an eBusiness that is just starting out. Thinking about the potential for your eBiz, you should have no problem doing the work to find the right JV partner.
1)Jump on the Search Engines and do searches for your competitors, or any site who's niche market is the same as yours. Keep records.
a) then use==>http://www.alexa.com to find out the essential information about each website you've visited. --Traffic Volume --Site owners Personal Contact Info. --Link Popularity --Where the Visitors visit after that website and
a lot more..check it out..www.alexa.com is invaluable to your Joint Venture partner search.
2)Once you found a few potential partners SUBSCRIBE to their newsletters.
a) If you find the content bland and well... 'crappy' then it's best to not do business with them because s/he probably does not have strong relationship with his/her
list.. Hence your response would most likely not be that great.
b) But if after a few issues you find that the content is fresh and
informative.. You can bet many, if not all his/her subscribers feel that way...These eMarketers would be your best potential JV partners.;
c) Now when you find a few sites you are interested in doing business with, email them and ASK them how many subscribers they have (unless it is posted in their
newsletter.. That saves you the work). Explain you are looking for a suitable partner for a JV with a great product etc. They will be more than happy to let you know, because your inquiry is a potential profit opportunity for them.
d) You want to make sure to look for a subscriber base of at least 5,000 for a hefty
response.. You can choose sites with less subscribers, regardless of how many sales your product generates--it's still.. ..ALL PROFIT.
3) Oh, now the Interesting part comes in. Contacting your potential Partners. An eMail could work in this situation, but if you want to be taken SERIOUSLY a phone call or personal meeting is the best way to project your self as a serious, professional eBusiness owner.
a) You may want to email them the day before and give them a quick over view of what you have to offer for the JV. Tell them you will be calling them around 12pm (lunch) to discuss the details of your proposal. Give them the option to call you if they wish.. and also give them the option to email you back to re-schedule the calling time.
Ok, I am going to contact my Potential JV partner----what do I say?
The best way to think about how you are going to propose your marketing plan is.. "If his/her list was MY list, how would I market my QUALITY-Targeted product/service to MY subscribers?" Don't be
scared.. Remember this is a 'win-win' situation, s/he will profit from this also.
1) Explain Your Marketing plan to your potential JV partner--Spell out EXACTLY how s/he will profit from doing this JV with you.
a) Emphasize on the backend sales opportunities that YOUR product will allow them to profit from. And we all know how profitable backend sales can be.
2)Offer Them a free "test drive" of your product. Give them a trial version if you can, or just give them your product for free, so they can evaluate it. Losing 1 sale for 5,000 potential sales is a safe risk ^_^.
a) If your product is of OVER-DELIVERING QUALITY, it will be that much easier to get your prospect committed to your Joint Venture proposition.
3) Reassure them that they are not at risk at all. Keep him/her in the mind set "They can only profit in this situation". You must make the offer financially appealing--Worthwhile for them. Again, here go with a lower percentage than him/ her.
4) Flatter them (subtly). Tell them you will offer his subscribers a DISCOUNT on your product. This will make him out to be even more likeable among his subscribers. Tell him they will think of him as the one who fought to get them the lowest price possible, and this in turn will convert into more sales for the both of you.
Ok...So how do I make sure WE GET PAID?
Ah, yes here we are. The whole point to this whole Joint Venture adventure. "Show me the MONEY!"
Since Today we are focusing on eMail Marketing to promote our product via this joint venture. There is really only One cost effective way to ensure everyone gets paid...but to take away all the hassles involved of tracking the sales and getting the checks mailed out.
If you haven't already, Become a Clickbank.com vendor, to easily track all your
sales. and to ensure that all who are involved GET PAID.
1) Become a click bank vendor ==>http://www.iczn.com/clickbank.html a)submit your product to clickbank.com's affiliate program
2) Pick The percentage you agreed to pay your Joint Venture Partner each sale.
3) Sign him/her up as your 'Affiliate', or have them do it them selves-(it's suggested that you do all the work, remember make it easy for them)
4) When they assign him/her the link for your product place that link as the order link on the ad(s) you submit to your partner for mailing to his/her list.
Once you have this in place, Do your Joint Venture Ad(s) mailing(s).
Then click bank will mail a check every two weeks. a) and you get real time sales reporting using clickbank.com
This is YOUR 'win-win' situation.
Now, there is a perk but it can also be a downside to using clickbank to get paid for your joint venture. Your Product becomes available to their vast line of products that are free for other eMarketers to promote.
This can be a perk in that, if anyone else decides to pick up your product and promote it...You make money with out having to do anything.
But, if you wanted to keep your product exclusively Yours...and no one else can market it beside a selected few. Then this next approach is for you.
You simply need to contact your lawyer. Tell him/her to draft a contract and outline EVERYTHING about your proposal:
3-Do's and Don'ts etc...EVERYTHING
This will make sure you and your partner are protected. Then have it sent to your prospective partner, have him/her sign it.
and that's it. Just make sure to send them the check when your JV is over.. (or do it through out the JV, whatever you prefer)
I hope you found my article/tip helpful to more successfully market your eBiz.
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Joint Venture Marketing just may be the most powerful marketing
method ever invented. It is the strategic use of a companies
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marketing is a concept
used to proliferate the knowledge of your existence on the web through
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