OK, so many people still don’t understand this LUCRATIVE marketing strategy (which may be an advantage to those that do), so here it is again.
A Joint Venture (also known as jv’s or strategic alliances) is an arrangement that will be of mutual benefit between two (or more) people, businesses or companies who have complimentary resources. What do I mean by resources? I mean products, services and a customer list (or mailing list) that has a relationship with the list owner.
Joint Ventures are a very powerful but underutilised marketing strategy. Yet, according to the legendary Jay Abraham less than 5% of all business owners use joint ventures properly and most don’t know how to use them at all. Joint Ventures are successful because of the old business rule that says: “People like to buy from someone they know and trust”.
The best JV is when one company endorses (recommends) someone else’s product or services to their customer list that they have a relationship with and both share the additional profits. This is a win/win arrangement!
For those of you who do not know what a customer list is – it is a list of addresses and/or phone numbers/email addresses that a business owns of all the people who previously bought from them.
You have probably already been asked your name, address and/or phone number while purchasing something in a store, or your email when surfing the internet. The owners can then communicate with you to try to sell you other things.
Smart business owners regularly send helpful information to their customer lists, thus building a relationship with them. And when they have a good relationship, it’s a lot easier to get them to buy more.
The relationship between a business owner and his/her customers is the most valuable asset that a business has. This asset isn’t measured in pounds. But, if you know how to leverage it, it’s as good as gold. In fact, when a business is sold, this asset is valued on the balance sheet.
You may not have realized it, but it can cost SIX TIMES AS MUCH to sell to a new buyer than to resell an existing buyer. And, it costs less and less every single time a client buys from the same business again. Eventually, when they buy from the same business enough, all of the money earned is practically pure profit.
On the flip side, using other people’s mailing lists allows you to use their assets without paying for them. This way your acquisition cost is ZERO dollars. More of the profit is yours because you don’t have to pay for advertising expenses to earn them!
By learning the several advantages of joint ventures, you will know how important they are for any business. This will empower you with the ability to sell them with efficiency as your words will sound more credible if you actually believe in what you’re promoting.
Let’s take a look at the benefits that can be brought about by joint ventures:
- Joint ventures will allow you to compensate for the areas you are weak in. Your partners will provide the knowledge and the skills that are needed in those areas. For example, you’re great with product creation, but you’d rather at a loss when it comes to marketing. Your partners in a joint venture will give you the marketing push that you need.
- Joint ventures will allow you to take advantage of the aid of businesses with complementing skills and resources. This exchange of stocks will result in a synergy that can propel all the parties involved to the next level of success.
- Joint ventures can boost your profits very quickly. Two minds are always better than one. What’s more if you’ve got three, or five, or even ten working on the same project and wanting to achieve the same ‘high level’ goals.
- Joint ventures are less risky. Because the hazards are divided into the number of parties involved, each partner stands to lose only the proportional share of the risks they have undertaken.
- Joint ventures offer great branding potential for FREE. Joining a group of highly respected and established names in your industry will allow your business to acquire some of their luster. If you have a joint venture with Microsoft for example, you can immediately see how such a JV partnership would do wonders in how people perceive you and your business.
- Joint ventures can build lasting relationships with your partners. Your relationship with your partners does not have to end with the joint venture. You can explore other opportunities with the same people again if things go well the first time around.
Don’t know how to start?
The good news is, now there is a quicker and easier way to learn how to put together and profit from Joint Ventures through The JV University’s 12 week hands-on certified JV consultant’s training program where we hold your hand and even let you work on LIVE projects while you are being trained.
For more information on our 12 week certified hands-on program please click the link below:
To Your Abundant Joint Venture Success!
Sohail Khan (the “Million Dollar JV Consultant”)
President & Co-Founder, TheJVUniversity.com