joint venture marketing
We have been stressing the potential overwhelming success of joint venture business. A successful JV is not one that is approached by all parties in a lazy fashion. Creativity and earnest work is essential in making a JV work for all parties.
However, joint ventures can be such a foreign business process for so many business owners and entrepreneurs. What are some fundamental strategies that make a JV work?
When taking on a JV partner, don’t forget that you are depending on the other party to promote your business. Do the same for them! Cross promoting services and products is one of the key elements of a successful JV partnership.
How can you cross promote? Here is just a sample of ideas:
- Signs – Of course, posters or post cards promoting each other’s business is a great way to get your respective business seen by each other’s customers.
- Reduced Price – Agree with your JV partner to offer a special to customers who make a purchase. By bringing in a receipt or particular voucher, you and your JV partner might give reduced prices or a special promotion to that customer.
- Free Sample – Exchange with your JV partner a supply of samples to distribute to customers. Everyone likes something for free, and by introducing your customers to your JV partner’s product and vice versa, they may feel compelled to buy from you in the future.
Bundle Your Products Together
Bundling products or services is a great way to offer mutual customers a bargain. You always want to be sure that your JV partner does not overshadow your product or service. By using this type of strategy, you should recognize a complementary way that your products can be sold. For instance:
- Your nail business can offer a bundle with your JV partner’s hair styling shop.
- Your clothing boutique might offer a package deal for alterations at your JV partner’s store.
- Combine your JV partner’s balloons and flower business with your gift basket delivery operation.
Communicate and Cooperate
The most important successful JV strategy is to communicate with your partner and cooperate in a business-like manner. Too often joint venture attempts fail because one or both partners do not communicate their expectations to the other. When you and your potential JV partner start talking about a joint venture, discuss all the points in which you both want to succeed and what should be expected of each.
Further communication strategies:
- Write it down – Always, ALWAYS, write your joint venture agreement down so both parties have a copy. Whether you form a formal legal arrangement or just a simply list of expectations, having a written agreement helps dispel finger pointing if something goes wrong.
- Keep a positive attitude – In helping to make a successful joint venture partnership, it always helps to be cheerful and enthusiastic. But things do go wrong, and when they do, remember to keep a business-like demeanor. Avoid getting red-faced and angry. Stay cool and pleasant and you’ll find cooperation much more amiable.
- Talk about results – As the joint venture progresses, take time every so often to chat with your JV partner about how things are working out. Discuss how to make success even more successful. Or perhaps talk about disbanding the joint venture partnership if it isn’t working for one or both partners. Whatever the case may be, don’t be afraid to talk results with your partner.
Remember joint ventures are a two-way street between you and your JV partner. Keep the communication lines open, stay enthusiastic about your combined efforts, and you will surely see results.
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.
To discover more joint venture marketing Strategies join his free Joint Venture Marketing Wealth Report