joint venture marketing
joint venture marketing
McDonald’s Happy Meals and Disney toys, Garmin’s GPS and Hertz rental cars, these are two examples of tried-and-true joint venture marketing partnerships that have led to huge increases in revenue for all parties involved.
The underlying fundamentals of joint venture marketing are simple. You partner with a company and have them deliver your message to their customer base. In turn, your marketing partner garners a percentage of your profits by expanding their asset offerings.
Whenever Disney has a new movie arriving in theaters, they utilize McDonalds as a marketing vehicle to generate additional excitement and exposure for their new film. In turn, McDonald’s capitalizes on the popularity of the movie to increase their Happy Meal sales.
With Garmin and Hertz, the benefit of their marketing partnership is twofold. Garmin’s legitimacy undergoes a significant boost, as Hertz is actively promoting their product, while Garmin demonstrates to the end user how effective its GPS systems work. In turn, Hertz gains significant increases in revenue from renting out the Garmin GPS units as an additional feature in their rental cars.
Whether you own a multibillion-dollar corporation or a one-person operation, any business can capitalize on the powers of joint venture marketing. In fact, much more effectively than traditional advertising campaigns, where you’re simply promoting yourself, usually to a critical audience.
For example, if you saw an online banner advertising and extolling the virtues of Brand X’s software, you would more than likely review it with a weary eye, as consumers consciously and subconsciously believe that they should be critical of any self-promoting advertisement. Not only do you have to overcome this initial skepticism, but you must compel the consumer to click through to your website.
However, if the consumer’s favorite blogger mentions the power of Brand X’s software, they will be more inclined to review the product. In fact, due to the endorsement from the blogger, Brand X has now made a good enough impression that there will likely be a sales conversion. When you eliminate the barriers of skepticism and the lack of motivation to view your website, you and your joint venture partner will enjoy increased revenues through commission on all sales made.
Thus, one of the most effective ways to promote your company’s products or services is through joint venture marketing. By capitalizing on the relationships other companies have already built with their customer base, your business can reap the rewards of a positive first impression.
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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