Joint Ventures, often known simply as JV’s, can be an extremely effective way to generate new business. This is probably why so many of you asked me for information on Joint Ventures, when I asked you for your marketing questions recently.
The following is a brief explanation of what JV’s are and how they work.
Joint Ventures explained
I’m sure there are a few different definitions of the term Joint Venture, but it’s actually pretty straight forward. It’s simply a way for 2 or more parties to market their services more effectively. This usually means reducing the cost of one’s marketing, increasing the reach of one’s marketing or both. Here’s a common example:
2 or more companies can put a mail shot together, where a piece of marketing from each company is included in the envelope. The cost of the mailing is usually shared between both companies. This is most effective, when YOUR marketing piece is being sent to THEIR mailing list. You should then reciprocate, by offering THEM the same opportunity with YOUR mailing list. This form of cross marketing can be extremely powerful, if you pick the right JV partner.
Joint Ventures and potential hazards
There are a few things you need to consider, before investing in a Joint Venture. These include:
- Never do a JV with someone you don’t know or have not thoroughly researched. This week alone, I have seen someone on Twitter, openly recommending a well-known con artist to her clients and friends! Whilst this was not a JV, it is an example of how easy it is to align one’s reputation, with someone that can seriously damage their own good name.
- Find a Joint Venture partner, who is in a complimentary but non-conflicting industry to your own. For instance, an accountant could offer my marketing services to her contacts and I could offer the accountant’s services to my contacts. That’s because neither of us offer a service, which might take business from the other.
- The most successful JV’s are mutually beneficial. As with any deal, it’s really important that both parties benefit equally. If you find that you’re the one getting all the new business and not the other person, there’s no incentive for them to continue.If this happens, consider offering the other person a commission or reward for anything you generate. Keep it balanced and everyone benefits!
Joint Ventures can be a useful way to reduce your marketing costs and get your message in front of a stack of new, prospective clients or customers.
However, in my next post, I am going to show you something that’s more powerful than a JV and which can help you generate amazing results very, very quickly!
Until then, I would love to hear your thoughts or experiences on Joint Ventures. Please share your feedback with a comment below!
Photo: Freewine
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I have been looking into Jv’s lately and see amazing potential in them, especially if you have a solid email list. Can’t wait to see what you have to share in your next post. I’m intrigued!
.-= Tom´s last blog ..The Aweber Code….And Why You Need To Promote It! =-.
Not long to wait now Tom
Hi Jim,
Some good insight here Jim… when things are tough, aligning and doing creative things with other businesses in your community can make a big difference. As long as it is mutually beneficial with good upside for all parties, a lot of new business can come from these strategic alliances. The ability to share marketing costs, leverage customer databases and benefit from trusted relationships can be huge. This type of joint effort is most effective for businesses that have established track-records, loyal customers and complimentary products and/or services. Oh, I just repeated what you said – LOL
Looking forward to your next post
Great minds think alike Mark!!
Hey Jim, the joint venture between Select Comfort and Radisson Hotels provides a sparkling example. Since 2004, the two companies have teamed up to outfit Radisson hotels with the Sleep Number bed.
Swapping out the standard-issue hotel mattress with the Sleep Number adjustable bed creates a strong point of differentiation for Radisson. And Select Comfort now has a way to introduce its Sleep Number bed to consumers in a non-intrusive way, cutting through the clutter of ad-speak and hype.
Very good topic, Jim!
.-= Tom Wanek´s last blog ..7 Steps to Setting-Up Your Own Image Depot =-.
We had the same thing here, Tom; with the Hilton Hotel group.
Interesting example. Thanks for sharing.
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