joint venture marketing
joint venture marketing
Nearly 70 percent of all joint venture partnerships fail for a variety of reasons ranging from starting off on the wrong foot, to complex ideology issues. Not every venture can be a success as there are risks involved with any business opportunity. However; with some basic steps in place during startup and a little preparation you’ll be well on your way to creating your first successful joint venture marketing campaign.
Many joint venture mistakes are made out of desperation by businesses that need additional capital or some other kind of resource to launch their new product or service. Picking the wrong partner can be worse than having no help at all, so it’s important that a company knows what to look for when choosing the ideal JV partner. Finding a partner who is targeting the same audience as yours is a good start. Researching their past joint ventures is also a good idea. If possible, learn if they’ve had other failed attempts and why they failed. Always keep in mind a good JV marketing partnership is one where both companies can equally extend their reach and increase their profits.
Leadership and Agreements
Another common reason joint ventures fail is improper leadership. When a company drafts a joint venture marketing agreement, they need to make sure the leadership roles of the venture are clearly defined. Without proper leadership, a joint venture will fail the same as any other business venture. In a perfect agreement, both companies bring valuable resources to the table. Smaller businesses usually have far less margin for error than multinational corporations do, or even mid-sized companies. Some experts recommend business owners consider joint venture marketing with another company to launch a small idea first. Such small projects will allow companies to test the relationship without committing large amounts of money or resources.
A company needs to have a valuable product or service that will generate profits. If the product or service is not strong, ROI will not be high because it’s not worth what the consumer paid for it, which in-turn will cut into the company’s profits. This will also weaken the joint venture partnership due to lack of profit and a bad reputation for all companies involved. Make sure a well thought out and researched product or service is marketed to avoid inevitable failure.
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.