What You Need To Know About Joint Ventures And Why
A joint venture refers to a partnership between two or more people for a business. It differs from the word “partnership” in the sense that it is more formal and in more legal terms.
In a joint venture, the two parties sign a legal agreement that they will be sharing the tasks and the risks of the business or the new venture.
One of the smartest and most lucrative paths to making money is to partner with someone who is either already highly successful or has the ability and potential to become highly successful.
Some people partner with others in exchange for a service. One will become the brains while the other is the operation. Others seek partners by virtue of their contacts and connections with agencies.
With that person on board, selling the products will be easier. The same goes with those who seek partners purely for their citizenship as with foreigners who want to start a business in a foreign land.
Of course, in order to become their partner in any business venture, you yourself need to bring something extremely valuable to the table.
In most instances, that would equate to one or more of the following:
a brand new and unique killer product
a mailing list comprised of thousands of laser-targeted prospects
the ability to market and promote something on a high-volume scale
Establishing the possibility of a joint venture can originate from one of two ways…
You don‘t have all the ingredients necessary to achieve financial gain. For example, you have a great product but no mailing list. Or you’ve developed a substantial list of subscribers but you need products to promote to them.
In that instance, you would have to actively seek out joint venture partners, business people who could satisfy the need or fill the gap that you have.
The other possibility is that you run across a potential partnership at random. It might be an individual who is highly recognized and regarded in your particular niche area, someone who has already achieved a great deal of financial success.
Or it could be a website that experiences an incredibly large volume of traffic, countless viewers who would be interested in a product that you want to promote.
The other aspect is whether or not any given choice is even receptive to becoming part of a joint venture. Some individuals and businesses actually encourage this type of solicitation, openly stating on their websites that they would be interested in receiving viable proposals.
Most often, however, identifying someone who would be receptive to joint ventures isn’t easy. The type person or business you’re looking for is already involved in plenty of money-making tasks. In order to spark their interest (or even capture their attention), you’ll need to get very creative.
Of course, once you have their attention, you’ll need to convince them exactly why they should even partner with you. Yes, it’s primarily based on showing them how they can profit from this partnership.
But it’s also based on convincing them why you specifically happen to be worth joining forces with.
Joint ventures can be a powerful – and oftentimes shortcut – method of generating large amounts of income. And in many instances, generating that income in very condensed periods of time. It just depends on what type of joint venture you negotiate.
Like any other money-making possibility, it all comes down to how much time and effort you’re willing to invest. And with joint ventures, the most time and effort needs to be spent preparing for the deal.
If you skim haphazardly over the details – all those little components that can make the difference between scoring major joint ventures and getting tangled up with dead-end partnerships – you’ll experience very little (if any) financial reward.
If, on the other hand, you take the entire process seriously – if you knuckle down and put whatever time and effort is necessary into your research and preparation – you could be generating vast amounts of revenue for a long time to come.
Research and Preparation
Finding Viable Prospects
There are two primary possibilities you’ll be considering for any joint ventures… websites and newsletters.
For ezines, you first need to locate and choose which newsletters would best reach your target audience. There’s really no shortcut method of conducting this type of research. You just dive into any of the major ezine directories and start searching.
Once you’ve singled out the best prospects, sign up for each of those newsletters. That way, you can see firsthand whether or not the publication is right for your particular needs. (No sense initiating a joint venture deal that’s going to target subscribers who have little or no interest in what you‘re promoting.)
In order to locate websites, you’ll need to first compile a list of keywords that are related to your product or niche market. Next, go to a search engine like Google and input those keywords. The results will show you all the top websites currently associated with those phrases.
Single out the ones you feel would be best suited to your joint venture. If, after visiting them, you still feel they’re a good prospect, type the URL addresses in the Google and Alexa toolbars so you can gather more information.
What you’re looking for is data such as page rank, link popularity, number of page views, the volume of targeted traffic, and so forth. The more information you have, the easier it will be to make a final determination with regard to joint venture value.
Here are the links for both toolbars…
When conducting searches this way, it’s always a good idea to do whatever it takes to trim the time that‘s involved. After all, the faster you can conduct searches, the faster you can begin sending out joint venture proposals.
By using search engine software, like the one that you can download from FirstStop Websearch ( http://www.firststopwebsearch.com/ ), you’ll be able to perform multiple searches simultaneously. That way you can access several search sites while at the same time receiving a much broader range of information more quickly.
If you’re specifically looking for products to include within your joint ventures, the ClickBank website at http://www.clickbank.com is an excellent place to conduct your research. Not only can you easily find products according to category (niche), you’ll receive specific information about which products are generating the most income.
Of course, ClickBank can also be used to locate viable and profitable joint venture partners. Go to the ClickBank website and click on Earn Commissions. Then click on any of the categories and sub-categories.
The first ten results listings will be those products which are currently earning the largest amount of affiliate revenue. Start with the number one position and click on that link. When the new window opens, extract just the main part of the URL address.
Next, go to http://www.uptimebot.com and input that URL. From the results you receive, you’ll be able to tell which links are pointing back to that particular address from within the top search engines.
From those websites, choose the ones that you feel would constitute the strongest joint venture partners. After you’ve narrowed the possibilities, use the Google and Alexa toolbars to determine how important those websites are.
You’ll still need to hand select the final joint venture candidates, but doing it this way simplifies the overall process of conducting cold search engine searches.
Throughout the entire process of searching for viable JV partners, you’ll also be locating and jotting down the name of each chosen website owner and ezine publisher.
In most instances, you’ll find the ezine publisher (or information that leads to the ezine publisher) within the newsletter itself. If not, you can search through some of the ezine directories, ones that list specific information about each publication (owner, contact information, number of subscribers).
For website owners, if the information isn’t located on their site, you’ll need to conduct a WHOIS search ( http://www.coolwhois.com/ ). Once you get that information, print out the results page and keep it on file for future reference.
Most often, the person who is listed as owner of the domain is also the person you need to contact with regard to a joint venture.
Be aware, however, that the WHOIS search will give you a lot more information than you currently need. To begin with, you’re simply looking for a name, so you can personalize any correspondence with that individual.
There’s a good chance the WHOIS search will also include a phone number. But don’t even think about using it. Always make initial contact through email message, even if their phone number is posted on the website. If the person is interested in your proposal and wants to speak with you over the phone, they’ll say so.
Another method of attaining contact information from websites is to use the Alexa toolbar. Just click on the Traffic Ranking stat which Alexa provides for whatever website you’re interested in. You’ll be taken to a page that lists that website’s traffic statistics. Most often, the contact information is also included.
Once you’ve completed your research and gathered all the necessary information, it’s time to create and send your joint venture proposals.
Contacting Potential Partners
When it comes to contacting potential partners, there’s nothing more important than the initial message you send out.
In most instances, the people you’ll be contacting are not only busy with their own endeavors, they’re accustom to receiving joint venture proposals. In order to make certain your message is even read, you need to start with two specific details.
One, the subject line of your email message should be truthful and precise. Basically, a simple “joint venture proposal”, or “David, JV proposal for your consideration”, or something similar is all you really need.
Whatever you do, don’t get cute, don’t get creative. And don’t try to mask the real intent of your message.
In this particular case, you want the person on the other end to know exactly why you’re contacting them. They’re either willing to consider joint ventures or they’re not. If they are, they’ll read your message.
If they’re not, no cute or creative subject line is going to make them change their position. Granted, an intriguing (or even misleading) subject line might cause them to take a look at the message. But once they realize they’ve been duped, how receptive to forming a partnership with the deceiver do you think they would be?
Keep in mind that you’ve done a great deal of research to get this far. And even if someone doesn’t accept your joint venture proposal, that doesn’t mean you won’t be crossing this person’s path again or be able to continue communicating with them. Or have the opportunity to develop another form of business deal or partnership at some future date.
Each and every time you contact someone, view it as an opportunity to establish a solid and lasting relationship, one that might or might not allow you to profit or benefit in the future. It doesn’t matter. Because the truth is, you never know when a financial opportunity might present itself.
Always approach these joint venture proposals with professionalism and respect. That way, no matter how they turn out, the door to future contact and/or possibilities always remains open.
That being said, let’s return to the actual contact message…
The second detail could make or break your proposal is the greeting. You should always address the person by their first name.
For one thing, it sets an informal and familiar tone (it’s human nature to be much more receptive whenever you see or hear your own name). Also, it lets the individual know that you took the time to actually find out who they are.
There’s nothing worse than receiving a message that is so obviously being sent with a blanket “to whom it may concern” approach.
Of course, what immediately sets off this alarm are greetings like “hello” or “hi there” or “webmaster“ or “friend“. Or no greeting whatsoever. You know immediately that you’re getting a cookie-cutter message that’s being sent to dozens, if not hundreds, of other business people.
So you’ve got your informal greeting using the person’s first name. The next thing you need to do is identify yourself and your business.
You can accomplish that using just a few words…
Jeff Alderson here from http://www.adwordanalyzer.com.
Or you can provide a bit more information…
Jeff Alderson here from Xybercode, Inc. In case you’re not familiar with me, I create and sell software products, ones that are specifically geared toward promotion and marketing techniques. Basically, products that help webmasters perform their online tasks easier and more efficiently.
Once you’ve identified yourself, you need to stroke the person you’re contacting. A good method of doing that is to let them know you’ve either visited their website or have firsthand experience with one or more of their products. Or both.
Next, you need to compliment some aspect of the website and/or product. And always be specific (so they know you‘ve actually experienced it)…
I was especially impressed by some of the more advanced SEO techniques you’ve implemented throughout your website.
I have to admit I was skeptical at first. But within weeks of using [insert their product’s name], my Google page rank increased two points in just a matter of weeks. Very impressive!
After that, announce the fact that you’re seeking a joint venture. How much information you provide with regard to specifics would be based on who you’re contacting and what type of venture you’re trying to solicit.
In some instances, just implementing initial contact might be sufficient… “I have a proposal in mind that I’m confident would be mutually beneficial to both of us. I would very much like to discuss the details with you. You can reach me by simply replying to this message. Or, if you prefer, you can call me collect at 555-000-0000.”
More frequently, however, you’ll need to give details of the proposal in that first contact message. The amount of detail and description would depend on the proposal itself. Again, the individuals you’ll be contacting are busily involved with their own interests. Not to mention the fact that they probably receive all sorts of joint venture requests on a regular basis.
Whatever you can do to save them time and energy is going to help elevate your joint venture proposal to the “yes” or “could be” side of their list. Let them know exactly what you have in mind, and most importantly, how it will benefit them.
Be specific. If you’ll be giving them a sales commission, tell them the exact percentage they’ll receive. If you’ll be endorsing their product to your list, tell them exactly how many subscribers you have.
No matter how good your preparation and research is, no matter how compelling your initial contact message happens to be, you won’t get positive responses from everyone you contact. In fact, you might not even receive a response from most of the people you send proposals to.
In those instances, you need to be prepared to send out follow-up messages. The people you’re contacting could be extremely busy and just haven’t have the opportunity to respond. Or maybe your message got deleted prematurely.
Either way, allow at least a week or two to pass before sending any form of follow-up. Then respectively let them know you’re following up on your initial contact from such-and-such a date and remind them of the overall proposal.
It would also help to include the original message. That way, you’ll be certain they have all the necessary information.
Whatever proposal you entertain, make absolutely certain it allows the other person to be generously rewarded. If you approach a partnership with the sole purpose of making a monetary “killing”, you’re defeating the very nature of a successful joint venture.
It’s not about how much money you can make. It’s about forming long-lasting and highly lucrative business associations. If someone turns you down initially, you might – at some time in the future – come up with another proposal, one they can’t possibly refuse.
Or, once they get to know more about you and your business, they might be the one to initiate some type of joint venture.
It’s never a good idea to forge into these joint proposals with the express purpose of achieving one particular outcome. Instead, you need to view them as a unique opportunity to rub elbows with other (and most often, more financially successful) business owners.
If it takes a longer period of time than just sending one or two email messages in order to gain their trust and their confidence, so be it. You could very well experience a much larger and more dependable partnership in the long run. If not with an individual you‘ve personally contacted, then perhaps with someone they themselves happen to be closely associated with.
The point is, joint venture proposals can be much more rewarding if you view them from a business relationship perspective rather than a means to generate more income.
Yes, making money is your ultimate goal. Just don’t assume an immediate acceptance of your joint venture proposal is the only way to accomplish that. In other words, always leave the door open to other possibilities. You just never know where it will lead.
Sample JV Proposal Letters
Example # 1
This is John Doe from [insert business name] at [insert website URL address]. Having visited your website, I wanted to let you know that I’m very impressed. I especially like the way you’ve handled the page layout and navigation.
The fact that we’re each involved in related areas of [insert niche or topic] has convinced me that our individual target audiences would compliment one another. Which brings me to the point of this message…
I have a specific joint proposal in mind that could prove financially beneficial to both of us and I would love to discuss it further with you. Please don’t hesitate to contact me either by email me or by calling me collect at (555) 000-00000.
Example # 2
I’m promoting [product] and I would like to discuss a joint venture that I’m confident will provide us both with a substantial financial return.
As I’m sure you know, this type of product is in great demand these days. Of course, I wouldn’t expect you to personally endorse something without having the ability to test it firsthand. That’s why I’ve taken the liberty of including a copy of [product]. You can also review all the sales information at [URL address].
This is what I have in mind…
[briefly describe your proposal]
If you decide to join me in this venture, your commission for each sale will be 65%. Also, an advanced tracking system is already in place which will accurately keep you advised of all your product sales and information.
I appreciate your time and attention in this matter and look forward to hearing from you at your earliest convenience.
JV Benefits and Ideas
Following is a checklist of various benefits that relate to joint ventures. Just reviewing this from time to time will help give you new ideas and incentive.
generate large sums of income faster and more effectively by teaming up with someone who has a greater marketing reach
build long-term business relationships that you might otherwise not have come in contact with
improve your own reputation by associating with other highly successful business owners
initiate various business deals with little or no financial investment
automatically gain new customers and potential leads
reduce or eliminate advertising costs by initiating trades with ezine publishers and website owners
gives you the ability to offer your customers a variety of new products and services
reach potential markets and target audiences that would otherwise exist beyond your expertise or abilities
learn and develop additional skills and techniques through your JV partner’s methods of promotion and marketing
generate fast income by initiating a special discount or time sensitive offer to a JV partner’s subscriber list
create additional profit streams that you continue to receive automatically on an ongoing basis (you supply the product, the partner does all the sales promotion)
gives you the capability of promoting your product to highly targeted mailing lists with no out-of-pocket expense
For the most part, joint ventures are considered short-term methods of generating income…
You have a new product to sell, you arrange a joint venture with someone who can blast a killer solo ad to their two-hundred-thousand-member subscriber base.
You find a product or service that your own customers and subscribers would be interested in and you strike a lucrative deal with the owner of that product (whereby you gain a considerable commission for each sale that results from your personal endorsement).
Those are your typical and most common joint venture scenarios. But the most lucrative means to generating the highest amounts of revenue come from business partnerships.
This would consist of two people forming an alliance for a particular product or service. For example, let’s say the business is based on a private membership site.
One partner agrees to create and develop the website. The other partner agrees to handle all promotion and advertising. But they both share equally in whatever profits the membership site generates.
This type of scenario would be the ultimate joint venture. Not just to conduct single instances of promoting a product or service but rather forming a permanent union in which both individuals enjoy an equal share of financial success.
Naturally, to achieve this kind of partnership, you’ll have to start at the bottom of the joint venture ladder. That’s where you mine for cold prospects through standard research and preparation… establish keywords, weed out the most promising websites and businesses associated with those keywords, contact the owners through joint venture proposals, and so forth.
Beyond that, you’ll want to cultivate any and all lucrative contacts and joint venture associates. That involves things such as finding additional ways in which to satisfy the needs and future income of those business people you’re now associated with.
Then, instead of trying to get random joint ventures going, you focus on one or more of your most promising contacts or associates. And the goal is to finally reach a point where you can develop equally shared business partnerships.
That’s not to say you should eventually discard all forms of joint ventures. You should continue to use them at every opportunity to bring in large sums of money, quickly and effectively.
Implementing any and all multiple streams of income is and always will be a sound financial choice. But one of those income streams should be, at some point and time, a substantial and full-blown business partnership.
If you can score even one of those, you’ve definitely hit the “big time” with regard to financial JV success.
Joint venture can be a success provided that clear parameters were set at the start of the business and that the two partners have the same work ethic, work personality and vision for the company.
Ideally, they should also be able to complement each other work wise.
For instance, one can be good with numbers while the other is good with the design. One will take care of the administrative while the other works on the creative.
This way, each will have a contribution to the team and therefore preventing discord between the two or among the partners.
When considering any joint venture, you need to be prepared to bring something of substantial value to the bargaining table.
Websites and ezines are the two primary possibilities you’ll be considering for any joint ventures.
Always sign up for any newsletter you feel would be a valuable and lucrative vehicle for a joint venture.
In locating viable websites, you need to first compile a list of keywords that are related to your product or niche market.
To gain additional information, input URL addresses of any websites that look promising into the Google and Alexa toolbars.
Use search engine software to conduct multiple searches simultaneously.
Go to ClickBank.com to locate popular products that are generating high levels of affiliate income revenue.
Follow ClickBank’s Earn Commissions link and choose specific categories and sub-categories that will lead to viable and profitable joint venture partners.
Locate ezine publisher contact information in the newsletter itself or in the data that’s most often included within ezine directory results listings.
You can locate website owner contact information on their website, through a WHOIS search, or through Alexa.
The subject line of joint venture proposal messages should clearly state an accurate intent and not mask what the true purpose is.
Always use an informal greeting that calls the person by their first name.
Introduce yourself and your website and/or business so the prospect has a fair idea who they’re dealing with.
Let them know you’ve visited their website or tried their product and then offer a genuine and specific compliment.
Briefly describe your proposal, giving them accurate details with regard to what you expect to receive and most importantly what’s in it for them.
Be prepared to send a follow-up message to prospects you haven’t heard back from in approximately one to two weeks, reiterating what you initially proposed as well as including the original message.
View joint ventures from the perspective of developing solid business relationships and not solely for the purpose of generating quick revenue.
Once you’ve established and become involved with joint venture partners, concentrate on developing additional ventures that are specific to one or more of those partners.
Work toward the ultimate goal of forming a business partnership, whereby each of the two parties share equally in both investment and return.
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