The Power of Joint Venture Marketing

Written on the 14 February 2010 by Altitude Communications

How to get others to start new forms of instant income for your business

Whether you’re launching a new business or extending a product or service in your existing business, one of the toughest and most immediate priorities is finding new clients, but often we don’t have large marketing budgets or you simply don’t have the time to spend developing new customers. So how will you find hundreds or thousands of qualified eager customers ready to start buying your products or services straight away, and how can you do this with very little time, money or effort on your behalf?

One of the most powerful ways of doing this is via joint venture marketing.

One of the quickest and easiest forms of joint venture marketing occurs with owners of co-related businesses. These agreements put into place a precedence which allows the other business to start selling your products and services to their customers right away. In return your joint venture partner would receive either a pre-determined percentage or a fixed amount of every sale of your product or service that they make. This kind of joint venture arrangement is similar to a distributorship or an affiliate program depending on your type of produce or service.  It is far and away the most simple and effective joint venture marketing strategy - and one that could add thousands of dollars to your bottom line in additional sales and massive cost savings.

After all, you simply need to consider the amount of money, time and effort that your joint venture partner has invested in their contact database. These are funds that you don't need to spend, because you're effectively leveraging your product/service on the good relationship of your joint venture marketing partner.  Through them you have the opportunity to tap into their network of contact database and start profiting from it right away.

So how do you get started?

The first thing is to understand what a joint venture really is... A joint venture is basically an informal relationship between two parties that come together with a single purpose. Some of these purposes may include the following:

  1. It may be an endorsement arrangement whereby your joint venture partner promotes your products and services to their range of existing customers.
  2. You may co-develop a particular product/service together where both you and your joint venture partner will develop the product/service and then co-operatively market this new product/service to BOTH your databases AND any new databases that you build together.
  3. Affiliate relationships: where you pay your joint venture partner a finder’s fee for sending new clients and customers to you. This can be done via an affiliate program, by offering either a set percentage or a percentage based on gross sales.

The wonderful part about joint venture marketing is that you are quite simply leveraging your time and efforts by tapping into another business' customers, their assets, their products and services for the promotion of your product or service. And while the world is your oyster when it comes to finding a joint venture partner (or many joint venture partners), one of the easiest ways to narrow your focus is to look for companies that complement the products and services that you offer. That being said however, take your time and make sure your joint venture partner works in synergistic harmony with your business' culture as well as your products and services - after all it's more than just a database. This company will be representing you to your new customers - so you want to make sure the "fit" is right.

For instance, if you are in the business of real estate, either buying, selling or property developing, you may like to look for joint venture partners in the area of gardening, interior design or finance. Remember – it’s important that your joint venture partner provides a complementary service to your existing products or services that you are offering.

Here's an advanced strategy...

Another unusual, but often profitable joint venture marketing strategy is to approach, or be approached, by some of your competitors. Competitors generally offer a range of products and services that you may or may not offer yourself. This may complement their suite of offerings to their existing customers in areas where they previously weren’t making any money or profit. Your particular product or service may offer a solution to a particular niche area that your competitor is missing out on. Plus, your competitor may have a list of unconverted prospects or past customers that they just were not able to convert and bring over the line.

This strategy gives you an opportunity to approach your competitors and help them to fill the void in their own business model. Under your joint venture marketing agreement, they will be able to sell your product/service to their existing prospects, while making valuable income and commissions. Plus as they are in effect acting as an agent for your business, they will still keep the relationship with their customer which means happier customers in the long term. The trick with this strategy is to clearly demonstrate to your competitor how they can increase their profits with little or no time, or no money down - without jeopardising their existing business. If you can effectively do this, their interest level will be very high. After all, your competitors have already spent a considerable amount of time and money to build their list of prospects.

Your main job here is to approach your competitor with a joint venture arrangement that will instantly bring money to them and turn money into both you and your competitors. Joint venture, or joint venture marketing, can really change the way that you do business to help maximise your time and money that you have spent building your contact database. After all, joint ventures or strategic alliances can bring in fresh clients and profit making ideas into your business.

Joint venture marketing is fast becoming a popular way of doing business on a global basis, mainly because of it's speed and effectivness in targetting new targets for a business using a small or non-existent budget.

In fact, scaled back to it's rawest form, another super simple, but highly effective joint venture marketing strategy, is to swap contact databases. A word of caution here though. You can't just swap databases, the SPAM act prohibits this. You can however, do an "ad swap."

Here's how it works... let's assume that you have an eNewsletter and they have an eNewsletter and your databases area bout the same size. To ad swap, you put an ad for your product or service on their eNewsletter which includes an affiliate or dedicated URL link to buy your product or enquire about your services, your joint venture partner then does the same on your eNewsletter. By swapping ads, you're effectively targetting a whole new database of people who may be interested in your product or service. Plus, because your joint venture partner has included your ad on their eNewsletter, they are effectively endorsing your service to their trusted list. But remember, this strategy will only work if you have a trusted list of contacts and an email marketing system. If you would like to test drive the FastTrack Email Marketing System, please click here.

Affiliate Marketing

Joint venture marketing is also very closely related to ‘affiliate marketing’. Affiliate Marketing is a form of a joint venture where one person, known as an affiliate, can go between the person and the products or services that you are selling. Affiliates generally earn a commission upon each sale, so it’s very flexible and easy to establish. For example, if I’m a real estate agent again, I may like to offer interior design or gardening services to my list of prospects and on-going customers. This is a way of generating an income that I would have otherwise never have been able to acquire. Commonly, joint venture partnerships or affiliate sales can range between 25 to 50% commission, depending on the products or services. Some particular business owners and individuals go as high as 75% commission. After all, it’s better to be able to get a small percentage of something than 100% of nothing.

Let’s look at 10 quick ways that you can develop a joint venture relationship, and how you can put them into place immediately:

  1. You may agree to cross-promote for no commission at all.
  2. Find people or companies with co-related products or services.
  3. You may like to conduct interviews with co-related product and service business owners, offering tele-classes, podcasts or webinars.
  4. Offer a lead generation product to people in your joint venture marketing database. For example, if your joint venture partner has a contact database list, you may like to offer them a free report, an eBook or an MP3 recording to opt into your contact database list.If you'd like some help developing a lead generation product for your business, click here.
  5. Look around for individuals, business owners and entrepreneurs who can endorse your product and give you raving testimonials.
  6. You may like to trade website links on your existing websites. This may include affiliate links that pay commission to your joint venture partner.
  7. Use the media, like radio, television or press, on shows that may be interested in your business and what you have to offer the community. This may also include a joint venture arrangement with the media organisation offering them a percentage of every product sold.
  8. Ask your joint venture partners about any eNewsletters or email campaigns that they send out on a regular basis that may contain links to your products and services.
  9. Look at sharing trade show booths at expo’s, and offer free bonuses and giveaways on a joint venture basis.
  10. Once you’ve developed a free eBook or free offer giveaway, you may like to include your joint venture partner in the eBook or the recording with reference to a particular website link, or a link directly to their products or services using an affiliate link that will pay you commission and earn you more profits.

One last tip that you may like to use when creating or developing your new joint venture marketing strategy is to create endorsed offers or endorsed letters. One of the most effective ways of doing this is by using a good email marketing system like FastTrack Emarketing. This is a quick and low cost, effective way of generating high levels of traffic to particular joint venture offers. After all, your contact database will be the most valuable business asset that you can use for ongoing marketing over and over again.

Joint venture marketing and strategic alliances may well be your next step to developing instant income and profits in hidden areas of your business in 2010.

Copyright Altitude Communications 2010. All Rights Reserved. This article may not be used without the prior written consent from the author. See below for more details...

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Author: Altitude Communications
 
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