joint venture marketing The success of a joint venture is dependent on the quality of the partner you choose and the more effective the partner the more successful your joint venture will be. However, understanding that basic concept and finding a JV partner that brings the right mix of advantages to the table can be
joint venture marketing
The success of a joint venture is dependent on the quality of the partner you choose and the more effective the partner the more successful your joint venture will be.
However, understanding that basic concept and finding a JV partner that brings the right mix of advantages to the table can be easier said than done. To help you find the best partner for your needs, we have five characteristics to look for in your search.
A Comparable Target Market
The best partner will cater to a similar market to you, without directly competing in their products and services. For example, a chiropractic office might partner with the fitness center down the street, or a beauty salon might work with a spa in the neighborhood. The idea is to offer different products and services to the same target market.
A Large List
If you are a small business hoping to use a joint venture to boost your own sales, a JV partner with a large list is an absolute must. A good number to shoot for is around 1,000 current names, with about 35-40% of the customers on the list classified as regular buyers. Remember, the bigger the list, the bigger the target market you will reach with your marketing campaign.
The Ability to Use the List Wisely
The JV partner with the list is typically the one that handles the mailings for the joint venture, since this business owner is already familiar with the names on the list and the type of advertising they respond to best. Instead of looking for a JV partner who is simply willing to hand over a list of names and contact information, find one that is willing to invest the time on the mailings himself for greater odds of success.
A Good Reputation
Look for companies that have already established a strong reputation in their industry. These are the businesses that automatically instill consumer confidence with their name alone. It’s very difficult to build that confidence with online businesses today, so finding a company that can help you in this area is worth its weight in gold. If you’re not sure about the company’s reputation, check online reviews of the business or talk to customers who have worked with the company in the past.
Willingness to Work with You
Finally, an effective JV partner is one that is willing to sign on for the time and resources required to make the partnership successful. It doesn’t matter how good the company looks on paper; if the business owner is not willing to meet regularly and put in his own effort to market the JV, it will flop. When both partners stand to benefit equally, each company is more likely to give it their best to make sure the arrangement works effectively.
A good joint venture partner is the first step toward a successful JV partnership. By keeping these characteristics in mind as you select a partner, you are more likely to find a company that brings many advantages to your effort.
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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