Today we want to talk about joint ventures. Joint ventures are processes where two people in the business combine their resources to sell a product then split the profits for the venture.
Suppose, for example, you have a good product but no list. The answer, sometimes, is a joint venture. You can join up with somebody with an impressive list. You sell your product to his or her list and you agree to split profits. A typical split is 50% - 50%, but this is negotiable.
This is just one example, there are all sorts of opportunities for joint ventures. In every case, two people with complementary resources get together and split the profits from their joint venture (this list is almost endless. Here are some examples):
You ask a copywriter to write a sales letter for your product or a copywriter offers to write a sales letter for your product. This is done often in this business. The profits from product sales are split.
You ask a writer to contribute articles to your subscription newsletter or you offer to write articles for somebody with a newsletter. Here the two usually don’t split profits. The writer benefits from having his or her name (and other particulars such as email address and website) seen by a number of newsletter subscribers. The publisher benefits by having good content for his or her newsletter.
You ask a well-known speaker to give a talk at your seminar or you offer to give a talk at a seminar being run by a well-known guru. Here the speaker has an opportunity to pitch a product at the end of the talk.
Attendees rush to the back of the room to buy the limited number of products on offer (you’ve seen this happen at seminars you have attended. You have probably run to the back of the room at least once). The speaker and the organizer split profits. This process is known as ‘back of room sales’ and can be extremely profitable for both parties.
You ask somebody to let you give away one of his or her products as a free bonus for a product you are offering for sale. Here there usually is no split of profits. The product owner benefits from the publicity (this is an example of ‘viral marketing’. We shall discuss viral marketing in Article Twenty-Five). You benefit from the increased sales resulting from the attractive bonus.
You interview a guru and produce either an audio or video recording of the interview. You offer this recording as a product to your list and the two of you split the profits.
When you are new in the business, profitable joint ventures can be difficult to organize. We have said in earlier articles that marketers with impressive lists are usually only interested in products that are wholly yours or for which you own exclusive licence.
Even if you have created a product, it will have to be recognised as having good commercial potential to interest the big players. Or, for example, unless you already have a track record for organizing big-ticket seminars, you are unlikely to attract well-known speakers.
Nevertheless, if you feel your idea for a joint venture has potential, don’t be shy about approaching anybody you think can help. You may not be able to pull it off this time. But in my experience, if the seasoned pro you approach politely turns your offer down, he or she will, at the least, send you away with some good advice about how to improve your chances with your next idea.
Remember, never give up! :-) :-)
That’s all for this time. See you soon.
Next time we shall talk about affiliate programmes – how you can make money from them or they can make money for you (all will be revealed).
Thanks for listening. :-)
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