joint venture marketing
There is no doubt that the recent economic slowdown has directly impacted businesses of all shapes and sizes today. Joint ventures have traditionally been a method companies have used to create new business opportunities despite current economic conditions.
We’ll show you how joint ventures can help you raise your profit margin on your business, no matter what the current economic climate might be.
When you partner up with another business, you automatically pool your time, talent and money to produce the most effective advertising campaign for less investment up front.
You may find a JV partner that’s a whiz at online marketing or knows how to write a linkbait article that gets results. Maybe you can find a partner that already has a solid customer list that he’s willing to share. An endorsement from a larger company for a share of your profits can also be a good way to grow your business by pooling resources in a joint venture.
Consider what you have to offer and what you are lacking, and find a JV partner that complements your assets and liabilities.
Introducing a New Product
For larger companies, a joint venture is the perfect way to introduce a new product or service to the market for less money and risk. Try using the customer list of your JV partner to get a new product out to a test market. This list gets a free sample of an item they’re interested in, and you get to test the waters for your new concept without much cost up front.
Find a JV partner with a similar target market to ensure the customers you test are the most likely ones to buy your products or services.
Expanding Your Market Base
By simply sharing customer lists with your JV partner, you can expand your basic market base exponentially. However, you may also be able to increase the market base demographically by finding a partner with a similar, but slightly different, target market. While you may not go too far away from your target customer profile with this approach, you may find enough variables to greatly expand your base while continuing to attract the customers that are most likely to buy your products or services.
Some joint ventures are created for the primary purpose of acquiring capital for both businesses to share. In some cases, a larger company might offer additional capital to a smaller business for marketing or product development if the larger business also benefits from the arrangement. If you find that cash is simply too tight to adequately grow and market your business at this time, perhaps a joint venture can provide the cash you need to jump-start your company’s growth.
Even in the midst of economic hardship, some companies find that joint ventures are one way to stay afloat. By partnering up with another business, you may be able to increase your resources, cash flow and customer base much more efficiently.
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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