joint venture marketing
You have found a list of suitable potential joint venture partners and have approached a few with a proposal. One of them is excited about the proposition and is ready to move forward with the details. How do you proceed with the negotiation phase?
When you are ready to begin negotiations with your prospective JV partner, here are a few basic guidelines that can help make the most of your negotiation sessions and ensure that you reach a mutually successful agreement.
Know Your JV Partner’s Business
Nothing sounds more amateur than entering a negotiation with no knowledge of your potential partner’s business. Even if your potential partner is in the same business as you, there are still many factors that you need to know that affect his business. Research possible and unique problems and challenges with profits, resources, and marketing.
Research can be performed on the Internet. Read your potential JV partner’s website. Browse and read industry publications. Discover any message boards that mention your JV partner’s business.
And don’t forget to do “live” research as well. You could perform a “secret shopper” style of research to get knowledge about how customer service is performed. Purchase a product or service and test its boundaries. The more you know about your potential partner’s business, the better equipped you will be to handle negotiations.
Know Your Potential JV Partner
Find out as much as you can about the person you will be dealing with. Is he a delegator? Does he prefer to be “hands on” and involved in every little decision? Do as much research about your potential partner before you meet. You may ask previous customers or even an administrative assistant about how he responds to certain situations.
However, mostly you will learn much by face-to-face contact and posing questions to your potential JV partner. Find out what he values. What are his dreams? Fears? And what does he REALLY want? Design questions that will help you get to know your potential partner and discover the answers to these questions. It will go a long way in crafting a truly unique and personal JV agreement between the two of you.
Be Prepared to Educate About JVs
Your potential JV partner may not be savvy to the benefits of a JV arrangement. Be ready to have as much information that your potential partner requires to feel comfortable with the decision to from a JV. Use articles, video, and other resources that can help convey the benefits of a successful JV.
Choose a Relaxed Atmosphere
A good negotiation will happen when both parties are relaxed and ready to communicate. That may be a restaurant, or meeting space, or even at a home. But make sure the environment is comfortable with no distractions while you negotiate.
A successful JV negotiation is when both you and your JV partner are happy with the arrangement. Neither of you should feel like you have a lesser part of the deal. However, if you want to help facilitate a good negotiation, follow these guidelines and you’ll be on your way to a happy and fulfilling JV with your partner.
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.