Introduction to Joint Ventures
Few people doing business online are aware of the power of joint ventures as a serious online income engine. Let me reveal the secrets of this amazing marketing machine. Simply put, it is a synergistic enterprise. It means that when you combine the resources of two or more entities in a cooperative effort the results will be greater than either could achieve working alone.
What is a joint venture?
There are many different kinds of JVs. They are really limited only by the imagination, so be creative. However, the basic JV that we will address here pertains specifically to Internet marketing. It involves the cooperation of one person who has a large list using it to promote the product of another party who usually does not have a list. However, that is not always the case as both parties could combine mailings their combined lists for their mutual benefit.
If you already had a huge list, you may not be as interested in a JV to launch your project. But even if you already do have a large list, it doesn’t preclude the obvious advantage of using someone else’s list to expand your market.
Here is a concrete example. Let’s suppose that you created an eBook or even an entire course complete with audio, video, and text components. But, now with a finished product you are left with the problem of how to market it. You have no list, very little money, and know very little about how to market online.
Suddenly an angel appears and whispers, “Joint venture” in your ear. When the student is ready the teacher will appear. Your solution is simply to do a joint venture.
Note there are two sides to the JV equation. I call them input and output. Basically, if you are the product developer looking for a partner, you are on the input side of the equation. If you are the list holder in a position to entertain JVs, you are on the output side of the equation. It takes these two components to form a synergistic relationship.
5 reasons to do joint ventures
1. Joint ventures are easy to do and can be accomplished quickly so that you don’t have to waste a long of time on a huge rollout advertising and marketing campaign. Basically, when the sales letter is done, it just takes a push of a button to launch it.
2. The profit can be insane. For illustrative purposes, let’s suppose that your product sells for $100, and you have agreed on a 50/50 split with your JV partner who has an opt-in list of 1,000,000 subscribers. Let’s use a very conservative sales return of only 2%. That would mean 20,000 sales times $100 yields $2,000,000 in gross revenue. Of course your half would only amount to a mere million. But, I think you can see how this works, and I hope I have your interest.
3. Joint ventures give you tremendous leverage because you, as an unknown entity, can promote your product on the reputation of the list owner who has presumably already established the trust and rapport of his subscribers.
4. Another advantage is that you can use joint ventures to build your own list rapidly. Those people who buy your product become your customers, and you can put on your own list. In the example above, you would have an instant list of 20,000. Not bad for a beginner, eh?
5. The back end sales are another benefit of Joint Ventures. Once you have sold a customer one product, and they are pleased with it, it’s relatively easy to sell them another, and another. You would be well advised to have a backend product ready to go before you even launch your initial product campaign.
How to find JV partners
While simple in concept, it may be difficult to achieve. First of all, the people with the lists may not be familiar with the concept and be fearful of trying something new with an unknown product and person. It will become your job to educate them and to sell yourself and your product to gain their confidence. Once that is achieved and the money starts rolling in, you will have created a partner for life eager for the next venture.
Another problem is that as the concept spreads, people with large lists can be in demand and bombarded with requests so that they may not pay any attention to you as an unknown entity. All you can do is follow up and keep trying. Use the phone if email fails and try to establish a personal relationship. Be certain that you have a worthwhile product, not just another ho hum widget. Also, don’t waste anyone’s time with someone else’s affiliate product. You have to have your own product.
To find a JV partner, look at all the people with whom you have already done business. Perhaps you’ve purchased an eBook or a course from several recognized authorities in the field. Approach them with a proposal. Do a Google search for joint venture partners. Look at niche publications and advertisements. Check out the yellow pages. Go to trade shows where you can meet and talk to people in your field face to face. Establish contacts at seminars who could become JV partners. Get a list of catalogs in your niche to see if they will carry your product. Advertise for partners. Visit forums and let it be known you are looking for a JV partner.
I may be interested in becoming your partner. Send me a proposal for a joint venture. I probably have one of the biggest lists around. I have been in the list business and helping companies large and small with direct marketing since 1988. First read my article Are you ready for a Joint Venture? Then download the JV application.
Try to keep the JV arrangements simple, for they need not be complicated, and you do not need lawyers involved. Draft an agreement in plain English that both parties understand and sign. I will supply a sample agreement you are welcome to use and modify.
Generally speaking, the bigger the company you do business with, the more complicated it can become. More people have to participate in the approval process; lawyers can get involved, and it can take forever and end up costing unnecessary money.
Usually, if it is a simple email blast to a membership list, an equitable arrangement is a 50/50 split with each side taking care of whatever expenses are involved. To keep matters simple you should agree on a split of the gross sales. If there are some extraordinary expenses, put them on the table, discuss it, and reach an agreement.
The person with the product who makes the proposal ordinarily does all the work, collects the money, and issues the payout. By all the work, I mean preparing the sales letter, autoresponder subscription, follow-up emails, and contracts with Clickbank or similar online processing service. Part of the agreement should be to supply Clickbank sales data to the outputter or list holder. Similarly, the outputter must be able to supply verification of mailing with server side data reports.
There you have it. Joint ventures are perhaps the simplest and most profitable online marketing method ever conceived. They are easy to do and can be executed rapidly for an almost instant cash flow. Remember, if you have a viable product ready to go, send me a proposal for my consideration.
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