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1/27/2012 10:19:21 AM EST
|Building Your Business With Joint Ventures
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Joint ventures (also known as JVs) are partnerships between two or
more people, usually with the purpose of cross-promoting products.
There are various types of JVs, and what you offer your JV partners
will depend on what you have to bring to the table, and what you're
looking for in return.
Most JVs are really affiliate relationships. You have a product,
for example, and your JV partner has a forum, website, or email
list. Your JV partner sends an email to his list about your
product, or puts an ad on their website, blog, forum, etc.
Then you pay that JV partner a commission for the sales he
generates. (It could also be the other way around, where the other
person is the product owner.)
Although this type of relationship probably shouldn't be called a
"JV," a lot of people do refer to it as such - probably because the
product owner approached the JV partner to ask for a promotion
instead of the product owner just deciding on his own to become an
A more common form of true JV is when two parties with email lists
or websites exchange ads. Usually, both parties have lists of
comparable sizes in the same general niche, and each person agrees
to send a mailing out to their list on the other person's behalf.
You send their message to your list, and they send your ad out to
Joint ventures are great, because they allow you to go far beyond
what you could accomplish by simply promoting to your own list, or
on your own site. If you have a list of 10,000 people, and 200
people buy the product you're advertising, you have a 2% conversion
If you could find ten other people with lists of 10,000 people to
send out your ad, and you also experience a 2% conversion, you
could make ten times the money you'd have made by sending out a
message only to your list of subscribers.
Of course, in many niches, lists will often have duplicate
subscribers. In the Internet marketing niche, many webmasters are
on dozens of different lists. When a major launch goes out, you
might get five or ten messages promoting the exact same product on
the same day.
But no two mailing lists will consist solely of exact duplicates.
Even in the same niche, people can attract different audiences.
JVs are a great way of reaching more people than you'd otherwise be
able to reach on your own.
If you're interested in doing a JV with someone, you should be well
prepared before you write to him or her with your proposal. You
must bring something to the table that is of value to the other
person. A JV can be a cross promotion or a bartering situation,
where each of you offers up a service or skill to jointly create
and launch a co-branded product.
Don't expect to write to a well-known marketer with a huge list and
get an instant JV when you don't have a list and aren't offering
anything special. It could happen, just don't expect it.
Occasionally, you can entice a JV partner with a very generous
commission. In that case, be prepared to pay 70% or more in order
to get JV partners, unless you're already very well known in the
niche or have a very large list of your own.
You'll also probably have to JV with people who have lists that are
similar to yours in size. Most people won't be willing to JV with
you if their list is over 10,000 people and yours is only 200... but
it never hurts to ask.
Once you build up a large list of your own, you can start getting
bigger JVs. Just don't forget about what it was like when you were
new and your list was smaller. You shouldn't automatically pass
over someone because his or her list is currently small.
If they're offering you a good commission on a very high-quality
product, it might be something you should consider. Plus, you'll
be developing a relationship that might be very valuable in the
Watch your inbox for another marketing tip real soon, and good luck
with your online marketing efforts!
To your online success,
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