joint venture marketing joint venture marketing has become an extremely popular way for new businesses to gain exposure and market share through partnering with existing companies in their niche. joint venture marketing has many benefits, but there are several pitfalls to watch out for, particularly if you are a novice and new to the world
joint venture marketing
joint venture marketing has become an extremely popular way for new businesses to gain exposure and market share through partnering with existing companies in their niche. joint venture marketing has many benefits, but there are several pitfalls to watch out for, particularly if you are a novice and new to the world of joint venture marketing. Below are several common mistakes to look out for when embarking on a new joint venture marketing partnership.
Take the time to ensure your partner has a solid reputation and high quality products and services
Selecting a partner for your joint venture is one of the most important steps in this business approach. When you choose a partner, it is imperative to choose one that has high quality goods and services, as well as a good reputation in the industry. You must research your proposed partner thoroughly because sometimes a company may look better on the surface than it really is. When embarking on a new partnership, your credibility and reputation are at stake. If you are new to the particular industry you are trying to do business in, you don’t want to get off on the wrong foot by partnering with a company that has sub-standard products or ineffective customer service. The company or companies that you partner with will reflect upon your own business, so be certain to research your potential partners thoroughly.
Offering your partner too small of a profit share
For a potential partner to engage in business with you, there must be an incentive for them, and offering too small of a deal may not make a partnership with you worth the investment of their time and effort. A joint venture partnership is something that is designed to profit both parties, and if your offer is not generous enough, your prospective partner will look elsewhere for a collaborator. Keep in mind that businesses with a large targeted and loyal client base will be the most sought after companies for joint ventures, and most likely you will not be the only company approaching them with regards to a joint venture proposal. If another business offers a larger percentage stake, they have less incentive to partner with you. So, if a potential joint venture partner is worth pursuing, they are worth sharing your profits with – without their part, you would probably have fewer profits anyway!
Handing over your client list
A joint venture marketing agreement is more than just handing over your client list, and there are a few things to keep in mind if you do choose to share client information. Make sure that if you do share client information that it is not in breach of contract with your clients if you have committed to maintaining their privacy: if you have committed to maintaining a clients privacy and you share their information with a joint venture partner, that is a sure way to sour any future business with those clients. Also keep in mind that you’ve worked very hard to develop your client list, and create good relationships with your loyal clients, which forms part of the value that you have to bring to a joint venture partnership. If you simply hand over your client list to your new partner, you give up an important point of leverage.