joint venture marketing
You may have heard about joint ventures as a means of growing your customer base by partnering with a similar business to share resources and customer lists. However, many small business owners are hesitant to enter into one of these arrangements because they are unclear on exactly what the benefits are.
If you have been leery about seeking out a potential joint venture, consider the many benefits these arrangements might provide.
Benefits to Your Partners
The first question you might ask when considering a joint venture is why another business would be willing to work with you in such an arrangement. However, joint venture partners stand to reap numerous benefits from one of these agreements, whether they are a larger business, smaller company or a related business of a similar size. Some of the benefits include:
- Potential profits from commissions, particularly if they agree to work with your smaller business to help you build your own customer base
- Shared allocation of marketing tools that will help their business become more visible to a targeted customer base
- Additional customers for a lower price, if they are a smaller company than you
It’s important to keep these benefits in mind when you are wooing potential partners to make the arrangement look more attractive to those companies in which you are most interested.
Benefits to Your Customers
Even your customers benefit from your new JV partnership, although those advantages may not be immediately evident to them. Customer benefits include:
- Improved trust and confidence in your business, due to their past history with your JV partner
- The ability to find your company more effectively through targeted online marketing tools you and your partner share
- The ease of shopping among related businesses from information they receive from a single source
Additionally the customer benefits translate to benefits for your business, by increased sales and a healthier bottom line.
Benefits to You
If you did not stand to gain anything from a joint venture, there would be no point to spending the time and energy to form them, right? The good news is that there are many potential benefits you may enjoy, including:
- An increase in targeted customers and sales
- More effective marketing so you get the best value for your advertising dollar
- If you partner with smaller business, you might enjoy additional revenue from commissions on your partner’s sales
- The ability to improve your reputation and trust among potential customers by cozying up with businesses they already work with
When an effective joint venture is established, all involved parties stand to gain from the arrangement. JVs allocate the necessary resources to effectively advertise to a targeted market with a smaller advertising investment and a greater return. Your customers enjoy greater consumer confidence in shopping with companies related to businesses they already have a relationship with. Finally, your increased sales and bigger customer base will benefit your own company where it counts, 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.
To discover more joint venture marketing Strategies join his free report on joint venture marketing.