joint venture marketing
Joint ventures are an effective way to market businesses today, but the truth is that many of these partnerships often fail before they get a real chance to make a difference. Why? Usually because the business owners involved in the partnership didn’t know the ingredients of a successful joint venture.
Thankfully, we have those ingredients here to help you start your joint venture on solid footing.
A Good Match
The company you choose to be your JV partner will have a lot to do with the success of your venture overall. The primary key to choosing a partner is to look at their target market. If it is similar to yours, the match-up is more likely to work.
At the same time, do not choose a partner who offers products or services in direct competition to your own, or you will cut your profit potential right from the beginning of your partnership.
Once you select a company with a similar target market to your own, spend some time with that business owner to see if he really seems committed to the idea of a joint venture. Once you both sign on the bottom line, it will be up to each of you to put in the necessary time, effort and resources to make the joint venture work.
If a potential partner seems disinterested or non-committal, you may want to look for another company that is more zealous about the joint venture idea.
A Written Contract
While you may like and trust the company you choose as a joint venture partner, you still want to have the terms of your agreement in writing to protect the interests of both companies. Your joint venture contract should include details on the resources coming into the joint venture, the method by which profits will be split and a time frame for the agreement. You can find templates for these contracts online or talk to a lawyer who specializes in business arrangements like these.
A Solid Marketing Plan
Joint ventures are only as good as the marketing you put into them. If no one knows about your joint venture, then they will be less likely to check out your business. Come to the table with a marketing plan in mind, which the two of you can refine according to your vision, skills and resources. The more effectively you market your joint venture, the more it will bring back in terms of customers and profits.
Joint ventures often die out because the partners don’t continue the relationship, as they should. Schedule periodic meetings with your joint venture partner to assess the current state of your marketing efforts and make adjustments as needed. This way, if the partnership runs into problems, you will be equipped to address them more efficiently.
Joint ventures are a highly effective way to build businesses, if they are created properly. With these ingredients in hand, you are more likely to create a successful joint venture that increases your customer list, profits and bottom line.
christian fea is CEO of Synertegic, Inc. A joint venture marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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