The Power and Profit of Affiliate and Joint Venture Partnerships
The Power and Profit of Affiliate and Joint Venture Partnerships
In offline marketing terms such as sponsorships, partnerships and shared revenues were used to define what is now referred to in the online world as Affiliate Partnerships and Joint Venture Partnerships.
Both online and offline partnerships have incredible benefits and the potential for unbelievable market reach when done right. They can also have incredible pitfalls when they are not well thought out and can cause havoc to one’s market almost instantaneously if not properly planned.
Affiliate Partnership
In this type of partnership, someone else (the affiliate) helps to sell your product or service and receives a percentage of that sale based on performance. The affiliate markets to their customers and clients. Common items to sell would be software programs, eProducts, and seminar registrations. This type of partnership allows for increased revenue streams while providing added value to existing clients by offering products and/or services that would be beneficial to them.
One challenge with online affiliate partnerships is the inexperienced marketer who is encouraging people to buy something they have not tried, know nothing about and are basically trying to make a quick buck. For an affiliate partnership to be most effective, research what is being promoted and only offer items that are a good match for the market being targeted.
Considerations in choosing affiliate partnerships are:
* How credible is the product or service?
* How long has it been on the market?
* Is the market saturated with other people selling the item?
* Is there a large enough market?
* What is your percentage of the sale?
* How and when are payments made?
* What is the reputation of the person you will be selling the product or service for?
Joint Venture Partnership
The primary purpose of this partnership is cross promotion with the goal of one company selling a product/service while increasing market reach and database size for all partners. A Joint Venture partner (JV) agrees to send out a message to their market about the company or product that Company A is promoting. In return for promoting Company A’s product or service to their market, the JV is able to offer some type of incentive to Company A’s customer base. This incentive will drive anyone who purchases Company A’s product or service to the JV’s company. The incentive could be a free item or a discount on an item. Ideally, the incentive offer is free.
Assume you are spearheading just such a partnership. Let’s say you secure partnerships with ten JV’s who each have a market reach of 100,000 and you have a market reach of 100,000. With the right partners your market reach will have gone less than 10% of what you would have had to over 1,000,000.
An essential element of success in JV partnerships is that everyone involved does what they agree to do. With a well-organized partnership where everyone follows through on their part, you can reap incredible benefits. If not, you can have a huge headache to deal with, let alone what it could do to your company’s reputation.
In a perfect world these types of partnerships would be hassle-free. In reality, there are areas of consideration, such as:
* What is the reputation of your potential partners?
* Will they follow through?
* What is the quality of the incentives they are offering?
* Is the market you are targeting oversaturated with these types of partnerships?
Affiliate and Joint Venture campaigns may be one of the best business and marketing decisions you can make or they may not be a good fit at all. Make your decision based on the overall objectives of your organization. By doing your homework you will be able to determine if this is a good fit for your business model. In some cases it is a great match, in other cases you may decide to walk away.
The Power and Profit of Affiliate and Joint Venture Partnerships - To learn more about this author, visit Kathleen Gage's Website.
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Many people marketing with the Internet are utilizing a couple of very effective strategies to increase revenues and market reach. Newer marketers may believe these tactics are brand new and are some great “secret” recently revealed. Anyone who has been in marketing for any length of time knows these strategies have been used for years in offline marketing. When utilized correctly they have been extremely effective in lowering marketing costs while increasing market reach and ultimately revenues.
In offline marketing terms such as sponsorships, partnerships and shared revenues were used to define what is now referred to in the online world as Affiliate Partnerships and Joint Venture Partnerships.
Both online and offline partnerships have incredible benefits and the potential for unbelievable market reach when done right. They can also have incredible pitfalls when they are not well thought out and can cause havoc to one’s market almost instantaneously if not properly planned.
Affiliate Partnership
In this type of partnership, someone else (the affiliate) helps to sell your product or service and receives a percentage of that sale based on performance. The affiliate markets to their customers and clients. Common items to sell would be software programs, eProducts, and seminar registrations. This type of partnership allows for increased revenue streams while providing added value to existing clients by offering products and/or services that would be beneficial to them.
One challenge with online affiliate partnerships is the inexperienced marketer who is encouraging people to buy something they have not tried, know nothing about and are basically trying to make a quick buck. For an affiliate partnership to be most effective, research what is being promoted and only offer items that are a good match for the market being targeted.
Considerations in choosing affiliate partnerships are:
* How credible is the product or service?
* How long has it been on the market?
* Is the market saturated with other people selling the item?
* Is there a large enough market?
* What is your percentage of the sale?
* How and when are payments made?
* What is the reputation of the person you will be selling the product or service for?
Joint Venture Partnership
The primary purpose of this partnership is cross promotion with the goal of one company selling a product/service while increasing market reach and database size for all partners. A Joint Venture partner (JV) agrees to send out a message to their market about the company or product that Company A is promoting. In return for promoting Company A’s product or service to their market, the JV is able to offer some type of incentive to Company A’s customer base. This incentive will drive anyone who purchases Company A’s product or service to the JV’s company. The incentive could be a free item or a discount on an item. Ideally, the incentive offer is free.
Assume you are spearheading just such a partnership. Let’s say you secure partnerships with ten JV’s who each have a market reach of 100,000 and you have a market reach of 100,000. With the right partners your market reach will have gone less than 10% of what you would have had to over 1,000,000.
An essential element of success in JV partnerships is that everyone involved does what they agree to do. With a well-organized partnership where everyone follows through on their part, you can reap incredible benefits. If not, you can have a huge headache to deal with, let alone what it could do to your company’s reputation.
In a perfect world these types of partnerships would be hassle-free. In reality, there are areas of consideration, such as:
* What is the reputation of your potential partners?
* Will they follow through?
* What is the quality of the incentives they are offering?
* Is the market you are targeting oversaturated with these types of partnerships?
Affiliate and Joint Venture campaigns may be one of the best business and marketing decisions you can make or they may not be a good fit at all. Make your decision based on the overall objectives of your organization. By doing your homework you will be able to determine if this is a good fit for your business model. In some cases it is a great match, in other cases you may decide to walk away.
The Power and Profit of Affiliate and Joint Venture Partnerships - To learn more about this author, visit Kathleen Gage's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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