4 Steps to Building an Effective Joint Venture Partnership

joint venture marketing

Joint ventures are one of the most effective ways to build your customer base and increase your profits. But how do you build your joint venture partnership to meet your goals? A JV partnership isn’t necessarily difficult to create, but you do need to have a few pieces of the puzzle to make it work for you. We have four easy steps for building an effective JV partnership, no matter what your industry or who your partner might be.

Choose Wisely

The first step in building your JV partnership is to find the right partner for your needs. Look for a business that is similar to yours that will attract the same types of customers. However, if your JV partner offers a product or service too similar to your own, you may find yourself in competition with them rather than forming a symbiotic relationship.

Approach Professionally

When you find a business that would make a profitable JV partner, approach the owner with the highest level of courtesy and professionalism. A canned email that sounds like it goes out in mass regularly will not get the attention of a business owner. Instead, write a personal letter, or better yet, give the owner a call to discuss your idea. Come into the conversation with a plan in mind to show that you have given this potential partnership a degree of thought before approaching your prospect.

Write it Down

Once you get an initial agreement from a JV partner, it is important to get the full agreement in writing. There are many good joint venture partnership templates online to help you draft an agreement that will cover all the potential loopholes. A thorough agreement should include the give and take process that you and your partner have agreed to, including profit sharing, link traffic and other marketing techniques. Both partners should sign the agreement and receive a copy to refer back to over time when necessary.

Set a Date

An effective JV partnership should have a definitive beginning and end, even if the ending date is simply a time to review the agreement and determine if it will stop or continue. These specific dates offer protection and an out to both partners in case the partnership does not proceed as planned. It also gives some boundaries to the agreement, so both parties know how long they have to build up the partnership and work toward a common end.

A successful JV partnership isn’t rocket science, but it does take a degree of marketing savvy to make it work. With these basic principles in mind, you can do much to increase your odds of an effective relationship with another company. A little research and preparation will make all the difference in developing a joint venture that will increase your customer base and your bottom line.

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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