joint venture marketing
Joint ventures have long been touted for their ability to boost profit for little up-front cost, but there is no guarantee they will be successful. Unfortunately, many business owners dive in without much thought or discussion from the get-go, resulting in a partnership that is disorganized and leaves expectations unfulfilled.
We have five talking points to include in your discussion when you’re contemplating a joint venture to ensure everyone is on the same page right from the start.
What is your reason for entering into a joint venture? Is it to build your customer list through effective online marketing or boost your profits through cross sales? Are you more interested in investing back into the JV to make it grow or merely using it as a marketing tool? Answer these questions during initial discussion to make sure both partners on the same page.
Determine up front how much time and energy you are willing to commit to a joint venture and then follow through with your promises. One of the easiest ways to make a JV partnership go bad is to fail to live up to your initial commitment in terms of your time and monetary investment. Know what you can do at the beginning of the partnership and you will be much more likely to see it through to the end.
Your Skill Set
What can you bring to the table? Perhaps you’re a master of SEO and can write a viral, linkbait article. Maybe you have customers who are willing to write positive reviews on your partner’s products. Every business owner has something to offer, so pool your resources to produce the most effective marketing partnership possible.
Your Profit Sharing
This talking point cannot be underestimated because money is probably one of the touchiest points in any type of partnership. Know precisely how profits from the joint venture will be split before you sign a contract, and make sure the specifics of your agreement are listed in writing. There is nothing more important than protecting the financial interests of all the partners involved.
Some JV partners make the mistake of failing to put a set time limit on their JV agreement. This makes it difficult to dissolve the arrangement if it fails to produce the expected results. Every joint venture should have a deadline, even if the date is simply an opportunity to review the partnership and determine if it will continue. Put the date in your contract, so everyone involved knows exactly what to expect.
Joint ventures are a successful way to build businesses, if they are handled properly. Once you have identified a prospective JV partner, it is time to sit down together and hash out every one of these talking points before drawing up your contract and signing on the bottom line. A little homework up front ensures everyone will remain happy with the arrangement well into the future.
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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