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Leverage Your Way to Profits With Joint Ventures



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You can't conduct business on the internet for very long without hearing the term "Joint Venture", but do you really understand them or how and why a Joint Venture works?

In broad, simple terms -- a Joint Venture is partnering with others to create a win/win situation for everyone involved.

But just what does that mean? How do you identify a good Joint Venture situation? How do you structure the partnership so that everyone wins? How do you approach a potential Joint Venture partner? There are tons of questions, and I'll try to answer them all.

At the very heart of Joint Ventures - what makes them work, and why they are more effective than other marketing strategies - is something called leverage. At the end of this article, you should understand leverage and have a number of ideas about how you might incorporate Joint Ventures into your own marketing strategy.

Joint Ventures are a way to leverage someone else's money, customers, opt-in lists, marketing muscle, credibility, products, influence, whatever - to create benefit for both. The most sought after benefit is probably immediate revenue and profits, so the first few examples will concentrate on those. But, your aim might be to:

increase your subscriber base, increase brand awareness in a new market, reduce or share certain costs, gain valuable information or skills, etc. so later, I'll explore some of these, too.

The examples are just intended to spark your imagination. Whatever you do, don't be limited by them. They are just examples!

Most joint ventures are unique, and the best joint ventures will be created by applying your own imagination and creativity to form the best win/win situation for you and your JV partners.

First, let's look at the most common Joint Venture opportunity on the internet.

Affiliate Programs :

Some will debate that there has to be some exclusivity, some limited number of partners - to qualify as a Joint Venture. I would direct you to the definition I gave above - and contend that an affiliate program satisfies that definition.

Besides, affiliate programs provide us with a very well understood example of the relationship between the partners. If you choose to limit the definition for your own purposes .. fine - but let's make use of them as a common frame of reference.

With the typical affiliate program, there is a single benefactor and as many promoters as possible. The owner of a product (benefactor) sets up an affiliate program in order to leverage the customer and opt-in lists, and the recommendations of the promoters (affiliates) to sell more of the product.

The merchant benefits through sales to web surfers, newsletter subscribers, etc. that he would otherwise have no way to contact - through the direct marketing efforts (including recommendations) by each affiliate.

The affiliate benefits by letting the merchant supply the sales copy, order fulfillment, and customer support - and, of course, through commissions on each sale made as a direct result of their promotions.

Those are the immediate, tangible benefits. There is more.

The merchant also collects contact information from each buyer, as a part of the ordering process. This allows the merchant to build their list of responsive contacts, so they can market to them directly in the future. They might even upsell additional products at the back end of the ordering process.

The affiliate also strengthens the relationship with their readers, past customers, etc. by virtue of having recommended a worthwhile product to their leads.

So both have leveraged the assets of the other to their own benefit.

Now let's look at a variation of the affiliate program. Let's say a merchant is readying a new product for the market. They have built the basic sales and order pages, but want feedback from others (a review) and need testimonials for the sales page to help convert leads to sales (even the gurus face this - no man is an island).

Product Endorsement :

You'll realize very quickly that the Affiliate Program is just a form of the Product Endorsement Joint Venture that we'll talk about now, so hopefully we have taken a commonly understood form of internet marketing and will begin now to expand the scope, and your understanding.

In the Product Endorsement Joint Venture, the merchant might approach a "smallish" list of known marketers with a Joint Venture proposal that provides them a free copy of the product to use and review, and an opportunity to be one of the first to recommend the product in the marketplace (once everything is ready for product launch).

The Joint Venture between the merchant and these marketers can be structured in many ways (in fact, each may be unique), but let's just play out a typical scenario for the purpose of an example.

First, the merchant is going to want maximum exposure and the most professional marketing he can get - so the "smallish" list will typically be a list of "super affiliates" that have demonstrated their ability to get their prospects to "click thru" to the sales page. For the most part, the merchant is also going to want his testimonials to come from recognized names - so this same list of "super affiliates" probably meets that criteria, as well.

OK...

The merchant approaches his list of potential JV partners with a free copy of the product, and gets the badly needed testimonials for his sales page in return. The JV partners will get additional exposure from having their testimonial on the sales page for the merchant's product. Not a bad deal for either, so far - but the whole package carries a lot more value for both.

Everyone who reviewed the product is also now in an ideal position to give a recommendation to their list, and (assuming they have the trust of their past customers or readers) should be able to direct a significant amount of traffic to the merchant's sales page. But why would they do that???

Well, besides making sure he is offering a worthwhile (and in demand) product - the merchant can offer premium commissions for any sales that are the direct result of the JV partners recommending the product, and can let them promote before the product is released to any other affiliates.

The merchant probably has to give up a larger percentage of each sale to get these recommendations, but they will produce many more sales than an affiliate simply pasting a banner on their web site. That's not a gamble, it's a certainty!

In return for the personal recommendation, the JV partner gets a higher commission, and early promotion rights (before the market is flooded with competitors making the same offer).

You could be either party in this partnership (many of the product gurus also make a fair amount promoting others' products).

So, now ... let's assume the merchant is YOU! "But, I don't know any super affiliates!", you say. We'll come to that later.

Or maybe you don't see yourself creating unique products and dealing with order fulfillment, customer service, etc. If you are satisfied marketing others' products, maybe all you need is to get in on some of those "super affiliate" deals - so you get some of those first promotion rights.

There will be plenty of opportunity for you to check this out later.

The above example is one of the more common ways to structure a Joint Venture, and product promotion brings the most immediate return - but you can partner with others in many other ways.

Copyright 2004 Russ Shearer

------------------------------

About The Author

Russ Shearer shows how to leverage the powerful resources of the big-wigs with Joint Venturing.

Work at Home Ideas and Opportunities

Ordinary people are making extraordinary money working

from home on the Internet with Rush2Profit.com.

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Dotdash Revenue Increases 32% In Q4, Ad And Affiliate Businesses Show Growth 02/11/2019 - MediaPost Communications
Dotdash Revenue Increases 32% In Q4, Ad And Affiliate Businesses Show Growth 02/11/2019  MediaPost Communications

Dotdash revenue increased 32% in the 2018 fourth quarter year-over-year to $40.2 million, “due to strong advertising growth across several verticals… as well ...


Twitch Partners Feeling Burned After Affiliates Receive Features That Took Them Years To Earn - Kotaku
Twitch Partners Feeling Burned After Affiliates Receive Features That Took Them Years To Earn  Kotaku

There are Twitch streamers, and then there are Twitch streamers. The platform has tiers: hobbyists, affiliates, and partners. The latter two titles must be earned ...


New NAD Decision Addresses Affiliate Links - Ad Law Access
New NAD Decision Addresses Affiliate Links  Ad Law Access

As part of its routine monitoring, the NAD requested substantiation for various statements that a BuzzFeed staff member had made about a moisturizer in.


Simple Affiliate Marketing Strategies to Supplement Your Income - Business 2 Community
Simple Affiliate Marketing Strategies to Supplement Your Income  Business 2 Community

There's always more to do with the money you have on hand. It's even more apparent in a business setting. Budgets rule everything. If you blow your budget ...


Top 10 Affiliate Programs to Increase Your Revenue in 2018 - Business 2 Community
Top 10 Affiliate Programs to Increase Your Revenue in 2018  Business 2 Community

If you're either in the business of e-commerce or lead generation and you're not taking advantage of affiliate marketing, you're missing out on one of the best ...


Publishers say affiliates generate more revenue than other types of marketing - ZDNet
Publishers say affiliates generate more revenue than other types of marketing  ZDNet

A recent survey points to a bright future for affiliate marketing and social engagement.


How does revenue work with YouTube, Twitch and Patreon - Polygon
How does revenue work with YouTube, Twitch and Patreon  Polygon

YouTube has a mission: help make their creators money — but not exclusively through ads. At VidCon last week, the company announced a number of new ...


How to Set Affiliate Commission Rates - Business 2 Community
How to Set Affiliate Commission Rates  Business 2 Community

A question we overhear frequently from our new clients is where to start when setting up an affiliate marketing commission structure with their partners.


Disney sees Q3 year-over-year earnings growth, thanks partly to ESPN's affiliate revenue growth and - Awful Announcing
Disney sees Q3 year-over-year earnings growth, thanks partly to ESPN's affiliate revenue growth and  Awful Announcing

Disney's earnings calls have often featured questions about ESPN struggles. But not so much this time around, with ESPN seeing year-over-year growth.


How DermStore's focus on commerce content created $5 million in revenue in 2018 - Glossy
How DermStore's focus on commerce content created $5 million in revenue in 2018  Glossy

Though the affiliate marketing market size is small (around $7 billion) compared to search engine advertising, which is expected to hit $95 billion this year, some ...


Viacom expects revenue growth in 2019 - MarketWatch
Viacom expects revenue growth in 2019  MarketWatch

Viacom Inc. said it expects revenue to grow in the 2019 fiscal year as the company augments its pay-TV business with production and licensing fees from...


Affiliate Programs Made Simple: A Step-by-Step Guide For Ecommerce Sites - Business 2 Community
Affiliate Programs Made Simple: A Step-by-Step Guide For Ecommerce Sites  Business 2 Community

Getting your products into people's hands and generating new sales is tough as a new ecommerce business. Aside from organic ecommerce SEO which can ...


LPL affiliate Private Advisor Group launches new plan to attract wirehouse brokers who may want to go RIA - InvestmentNews
LPL affiliate Private Advisor Group launches new plan to attract wirehouse brokers who may want to go RIA  InvestmentNews

LPL Financial's largest affiliate, Private Advisor Group of Morristown, N.J., is launching a new platform its partners believe will give it the ability to attract ...


Affiliate Marketing in 2018: What It Is and How You Can Get Started - Business 2 Community
Affiliate Marketing in 2018: What It Is and How You Can Get Started  Business 2 Community

Wake up at an ungodly hour. Drive to the office through total gridlock, streets jammed with other half-asleep commuters. Slog through email after mind-numbing ...


What Will Disney's Near-Term Revenue Growth Look Like? - Forbes
What Will Disney's Near-Term Revenue Growth Look Like?  Forbes

Disney (NYSE: DIS) had a mixed first half of the calendar year, despite solid gains in core segments – as both earnings per share and revenues came ahead of ...


Comcast Posts Mixed Quarterly Earnings As Falling Film Revenues Impact NBC Universal’s Numbers - Deadline
Comcast Posts Mixed Quarterly Earnings As Falling Film Revenues Impact NBC Universal’s Numbers  Deadline

Comcast posted mixed quarterly financial results – beating earnings estimates but falling short of revenue targets. The company, which is in a bidding war to ...


Best affiliate marketing programs of 2018 - TechRadar
Best affiliate marketing programs of 2018  TechRadar

Here are some great options for getting your website into the profit zone.


Cars.com Reports Third Quarter 2018 Results | News - Cars.com News
Cars.com Reports Third Quarter 2018 Results | News  Cars.com News

Cars.com Inc. (NYSE: CARS) (“Cars.com” or the “Company”), a leading digital automotive marketplace, today released its financial results for the quarter ended ...


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