joint venture marketing
It’s time to dispel some of the myths that surround the issue of joint ventures. JVs are in fact a highly sought after form of business that can create great success and even wealth for those involved. However, as with any unfamiliar business venture, JVs sometimes get an undeserving bad rap. Let’s look at the most common myths of JVs.
Myth 1: JVs Are Complicated
If you were a top market share technology company trying to form a JV in another continent with another top communication company to develop a new cell phone and wireless technology, then yes, a JV could get complicated. But that type of JV is very rare. Let’s face it – you’re a small business owner or entrepreneur who’s just trying to expand your business or business idea.
JVs do not have to be complicated. You could form a JV where you simply perform cross marketing of each other’s products. Or perhaps you share office or production facilities. The fact is that JVs can be simple and take little effort.
Myth 2: JVs Require All My Time and Effort
Actually, a JV may take less time and effort than you put into your own business. A simple JV agreement may require a once-a-month sales letter mailing, or simply displaying your JV’s products in your store. The point of sharing customer contacts and mailing lists is to get more sales than doing it alone, right?
Also, your JV partner may have complementary strengths that make the entire process easier. You may focus on the marketing and accounting functions while your JV partner does the production, packaging and distribution. How much more time would it take if you did all that yourself?
Myth 3: JVs Are High Risk and a Money Losing Prospect
A simple JV agreement where you earn a small portion of a sale of your JV partner’s product is virtually no risk. In an affiliate type JV, you only make money at the time of sale and do not put any of your own money on the line. This is a simple example of a low risk JV, but the fact is when you form a JV, you agree to share the financial risk with your JV partner. You take a financial risk every day when you open your business doors, right? The key is to control the risk. JVs are a good way to control the risk and share the expenses.
Myth 4: You Will Lose Customers
If you are recommending products and services that are beneficial to your customers, doesn’t that create customer loyalty? Your customers are not going to buy from you every time they go shopping or need your service. But by forming a JV that presents additional and quality services and products to your current customers, you have given them added value. Customers appreciate that and will reward you with return business.
JVs are one of the easiest and most successful forms of business partnership. When two businesses enter a JV agreement and agree to prudently control the financial risks and share resources, there is a high risk of success. Go get yours today!
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.