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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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Gambling.com Group Q1 revenues leap on US growth  EGR Global

Gambling.com Group today reported a revenue increase of 52% to €5.2m for the first quarter of 2019. The US-focused affiliate firm's organic growth rate hit 50%, ...


BuzzFeed Makes $50M In Ecommerce Revenues 11/20/2018 - MediaPost Communications
BuzzFeed Makes $50M In Ecommerce Revenues 11/20/2018  MediaPost Communications

BuzzFeed's Chief Commerce Officer Ben Kaufman and his 65-person team generated $50 million in revenue this year by successfully combining commerce and ...


How The Knot uses content to grow consumer revenue three ways - Digiday
How The Knot uses content to grow consumer revenue three ways  Digiday

Couples' wedding needs haven't changed much over the years. But as digital advertising has become harder to come by, wedding-focused publisher The Knot ...


How Affiliate Marketing Manager Acceleration Partners Succeeded By Cutting Back Its Offerings - Forbes
How Affiliate Marketing Manager Acceleration Partners Succeeded By Cutting Back Its Offerings  Forbes

Three years ago Acceleration Partners found that it was being pulled in too many directions. But cutting back the services it offered and focusing on its core ...


How to Kick-Start Your Affiliate Strategy in 2019 - PerformanceIN
How to Kick-Start Your Affiliate Strategy in 2019  PerformanceIN

All Inclusive Marketing CEO Sarah Bundy shares her top tips to kick start your affiliate marketing strategy in 2019.


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.


Viacom-DirecTV Fallout: Viacom Could Lose $2 Billion In Affiliate, Ad Revenue Declines 03/22/2019 - MediaPost Communications
Viacom-DirecTV Fallout: Viacom Could Lose $2 Billion In Affiliate, Ad Revenue Declines 03/22/2019  MediaPost Communications

Potential Viacom channels being dropped from DirecTV could have a major multibillion-dollar effect on the network group in terms of advertising and afffiliate ...


CBS 3Q Profit Rises on Digital Subscriptions, Affiliate Fees - Variety
CBS 3Q Profit Rises on Digital Subscriptions, Affiliate Fees  Variety

CBS said third-quarter profit rose largely on strength in revenue from affiliate and subscription fees, a testament to the company's ongoing efforts to find sources ...


IAC-owned publishing company Dotdash grew revenue by 44 percent last year - TechCrunch
IAC-owned publishing company Dotdash grew revenue by 44 percent last year  TechCrunch

Holding company IAC just released its fourth quarter earnings report, which includes positive numbers for Dotdash, the rebranded company formerly known as ...


Cars.com Reports Fourth Quarter and Full Year 2018 Results | News - Cars.com News
Cars.com Reports Fourth Quarter and Full Year 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 fourth quarter ...


Twitter Founder Jack Dorsey Expounds on Planned Crypto Team - Cointelegraph
Twitter Founder Jack Dorsey Expounds on Planned Crypto Team  Cointelegraph

Jack Dorsey, the founder of social media website Twitter and mobile payments provider Square, went into depth on his plans for his new team dedicated to ...


4 tips for combating link rot in affiliate marketing - DigitalCommerce360
4 tips for combating link rot in affiliate marketing  DigitalCommerce360

Affiliate marketing faces a rarely discussed, but very real, challenge: outdated links. The most common form of link rot leads to the page no longer being found by ...


Domestic Advertising and Distribution Gains Drive Discovery Q1 Earnings - Variety
Domestic Advertising and Distribution Gains Drive Discovery Q1 Earnings  Variety

Discovery Inc. delivered domestic advertising and distribution growth in the first quarter even as international revenue dropped.


Affiliate Marketing 101 - Business 2 Community
Affiliate Marketing 101  Business 2 Community

Affiliate marketing can be described as outsourced marketing. It's a process that involves you hiring a third party who is compensated for bringing business to ...


Twitch Adds New Affiliate Link, Merch Integrations To Help Creators Earn More Money - Tubefilter
Twitch Adds New Affiliate Link, Merch Integrations To Help Creators Earn More Money  Tubefilter

Twitch streamers now have several added tools to help them boost monetization, the platform unveiled this weekend at its annual TwitchCon gathering.


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 ...


eBay Cuts Back on Affiliate Marketing - EcommerceBytes
eBay Cuts Back on Affiliate Marketing  EcommerceBytes

eBay is cutting compensation up to 70% for certain affiliates who drive traffic to its site effective today, January 19, 2019, a further sign the company is engaged ...


Disney earnings decrease in second quarter but top Wall Street estimates - Los Angeles Times
Disney earnings decrease in second quarter but top Wall Street estimates  Los Angeles Times

Walt Disney Co.'s earnings topped Wall Street estimates for the fiscal second quarter, according to numbers released Wednesday, despite a 13% dip in profit ...


Marie Claire wants its fashion editors to drive e-commerce revenue - Digiday
Marie Claire wants its fashion editors to drive e-commerce revenue  Digiday

Marie Claire has launched Marie Claire Edit, an aggregator site where readers can shop from retail partners like Selfridges, Gucci, Prada, Net-a-Porter and ...


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