joint venture marketing
joint venture marketing
JV marketing is an excellent way to boost your business by cashing in on the expertise and customer loyalty of a more established business. However, getting started on a joint venture marketing campaign is intimidating if you’ve never ventured into one before. This article will take you through the steps of transforming your JV marketing concept to a successful business-building strategy.
Make a Plan
Every successful business begins with a plan, and yours should be no exception. With your product or service in mind, conduct some basic research to find out what types of customers will be interested in your goods and the marketing strategies typically employed to get those customers to make a purchase. With this information in hand, it will be much easier to select prospective JV partners that will appeal to a similar customer base.
Choose a Format
The next step is to find a joint venture marketing format that will fit your business style and budget. For example, do you want a partner to share your profits in return for a larger customer base? If so, look for prospects that are bigger and more established. Will your primary goal be to refer customers between your businesses? In this case, your partner may be similar in size to your own company to ensure a fair exchange takes place.
Look at the Bottom Line
Your budget will also determine the type of JV partnership that will work the best for you. Companies with smaller budgets may be more inclined to offer a share of their future profits, while those with more money to spend might look at a different type of marketing campaign to reach new customers. When you set your budget from the beginning, you will be less likely to exceed it during the process.
Once your pertinent information is gathered, you can use it to implement a plan of action for finding and enticing new JV partners. This may be done by phone, email or in person, depending on your marketing style and the type of companies in which you are interested. Keep one eye on your original plan during this process so you don’t stray from your initial purpose and goals for your JV marketing strategy.
Test it Out
Upon finding a prospective JV partner, test the waters with a short-term campaign that allows you to accurately measure the results. This way you can try out a partnership with minimum cost and time before investing in a full-fledged business arrangement over the long haul.
When your plan is complete, you should have at least one or two effective JV partners in tow to help you build your customer base and your bottom line. When you take the time to walk through all the steps of forming effective partnerships, your efforts are more likely to be met with success. A positive JV partnership will result in additional hits on your website, an increase in your customer base and a better profit margin overall.
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.