Tweet

J is for Joint Ventures

Guest post by: Helen Dowling

Article Overview: Joint Ventures is a concept that has probably been around for a long time, but only seems to have become mainstream over the last few years. Joint ventures can work in several different ways, but essentially means that two or more businesses will have an arrangement whereby they’ll promote each other’s businesses and profit from this whenever anybody buys.

J is for Joint Ventures

Joint Ventures is a concept that has probably been around for a long time, but only seems to have become mainstream over the last few years. Joint ventures can work in several different ways, but essentially means that two or more businesses will have an arrangement whereby they'll promote each other's businesses and profit from this whenever anybody buys. At first glance, this seems similar to referral partners, but actually it's a completely different concept. In referrals, although there might be a formal agreement to refer clients in exchange for money between two or more businesses, referrals tend to happen on an ad-hoc basis.

In joint ventures, both parties agree to promote each other on a very regular basis in exchange for money when someone buys. Let me give you a few examples.

1. I set up a workshop. You agree to promote this workshop to your list and your contacts and whenever someone books onto the workshop from your contacts, you get paid a percentage.

2. We both write an e-book and jointly promote this to our lists and our contacts. Whenever someone buys, we get a share of the money at a 50/50 split.

3. You create a membership programme. I tell my list about this and drive traffic to your site. If anyone buys, I get a percentage commission.

Joint ventures work incredibly for products and tangible services. The relationship is almost always automated - in other words, I would get paid a percentage automatically using a payment system rather than you having to send me money every month. And unlike referrals, where payment can take months to come through, with a joint venture relationship, payment is instant.

Joint ventures are also incredibly easy to track too - the payment system you use for your joint ventures will allow you to see when your contacts have bought a product or service and give you statistics on how much you've got paid. In referrals, it's not 100% clear because the parties concerned may not be completely honest with you.

So, if joint ventures sound like something that might be of interest to you, where do you start?

Well, the first thing to do is to create a list of possible joint venture partners - who appeals to the same sorts of customers as you do and has complimentary products or services?

Once you've identified possible joint venture partners, you need to think about what you'd like them to promote for you; what percentage commission you're willing to give them and what promotional material you're going to provide them with.

Your joint venture partners are unlikely to do anything for you out of the goodness of their heart - they're going to want to know what's in it for them and they're not going to want to have to do a lot of work. That means you're going to have to provide them with everything they need in order to get going.

You're also going to need a payment system that can handle joint ventures so that any payments are automated and send to your partners automatically.

It's only at this stage that you'll be ready to start talking to your potential partners. Don't forget to have a written agreement in place too.

Yes, I know that sounds like a lot of work to get it all set up, but the benefits can be enormous. If you want to start smaller, consider writing articles for the newsletters of potential joint venture partners to build your relationship or maybe doing something like a free teleseminar together to build both of your contacts.

Joint ventures are fun, great for business, but they are a lot of hard work. Make sure you're ready and prepared before you set them up, but once you are - go for it!

Related Articles
  Joint Venture and NonDisclosure Agreements
  Advantages and Disadvantages of Joint Venture
  Funding Resources
  The Importance of Joint Ventures
  Joint Venture
  Joint Venture Power
  Understanding the Different Types of Joint Ventures
  Consider International Joint Ventures
  Joint Venture Forum Overnight Business Recovery
  If Its Good Enough For Big Business Its Even Better For Small Business
  The Power and Reach of Joint Ventures
  Where To Find Joint Venture Internet Business Ideas
  Examples of Three, Simple Joint Ventures
  Joint Ventures - How Much to Charge
  Proposing Joint Ventures
  How To Propose A Joint Venture
  Are You at A Crossroads?
  How do I Innovate My Business to Grow My Business Without Increasing Costs
  Top 10 Tips To Having A Successful Joint Venture
  Joint Ventures - Whom to Deal With?

Article Tags: joint ventures, JV, JVs, partners, referrals



Related Forum Posts
Joint Ventures?? - I read this following paragraph in another business forum. Has anyone used joint ventures and had successful results? How do you go about setting up joint ventures? [quote:3vnvuml9]Joint Ventures have been, and always will be one of the most powerful marketing tactics ever, and for good reason. They are easy to set up, and they cost you nothing and if set up correctly will allow you to have more customers than you can handle! So if you promote a great product or service and want to expose it to more prospects, or you you seek ways to increase your sales, but aren't quite sure how to go about it you should definitely consider harnessing the power of Joint Ventures And the best part is that anybody can start using joint ventures to skyrocket their profits. It doesn't matter what you sell, or where you sell it.[/quote:3vnvuml9]
Re: Marketing a company - Get their contacts from someone who had been marketing to them before and do Joint Ventures with the guy
Free Ebook on Joint Ventures - Julie, you might be interested in the free ebook offer through Dollarmakers.com on Joint Ventures that has upto 30 variations for a small business to create joint ventures. Once you've read it I'd be happy to share more advanced ideas based on the book.
Different types of funding - Business Relationship Funding This is another source of funds that can be overlooked. It may be possible to introduce potential alliances to add value to both parties. It may produce an ultimate exit route in the medium to long term. Joint Ventures: Requires a legal agreement embodying the deal and another company Partnerships: Two companies collaborate with possible funding. Joint working relationships: These are an informal partnership which may be more project specific where the parties can share resources. Agencies: These can be geographical or product specific and generally incorporates a payment for the right to the agency. Distributors: Very like an agency but may not necessarily involve up front payment. Alliances: These do not require a separate company and can be embodied by a legal agreement to work together. Trade investors: Otherwise known as Corporate Partnering. This can be a good way to involve a much larger company in the business with a view to possible trade sale further down the line. Associates: This can be a loose arrangement with no fundamental commitments either way, rather like a preferred supplier. Equity Swop: Two companies exchange shares to a similar value to develop both businesses. Franchises: This can allow the business to grow without further direct investment. Licensing: This involves licensing a product or service to enable others to sell it. This requires you to own the intellectual property.
Joint Venture - How did the seminar go yesterday? Joint ventures can open up so many possibilties and are a great way to promote your products and/or services to a whole new and with the right base, to a targeted audience. Chris


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

10 Steps to Excelling at Franchise Sales

Stay Employed In A Down Economy

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.