Joint Ventures. What are They and What are the Advantages?

Joint Ventures, normally abbreviated to J.V’s, are one of the best ways of making money. Period. Why? Because you can literally earn a high income without ANY PRODUCT using OTHER PEOPLES CUSTOMERS and with VERY LITTLE WORK on your part!

So what exactly is a joint venture? Basically it is a simple agreement between two individuals (or groups) to work together for mutual profit. Obviously the profit split can be anything the participants agree on but normally it is 50/50. Again you can make the agreement as complicated as you like involving lawyers if you wish but mostly people tend to rely on a gentleman’s agreement.

Isn’t this dangerous? Possibly but marketing in the information area particularly over the internet tends to be rather “open”

This means that any attempt to “Rip Off” a fellow marketer soon becomes common knowledge within the fraternity and will badly backfire on you.

The chances of getting any repeat J.V’s will then be very difficult for you (to say the least!)

Please note here that I am not a lawyer and I am not trying to give you legal advice just informing you about what normally happens. If you have doubts about any joint ventures then by all means consult someone in the legal profession.

Phew! I don’t want to be sued!!

So how does this Win/Win situation work? There are 3 main types of J.V’s:- -To make money selling YOUR PRODUCT to someone else’s customers -To make money selling SOMEONE ELSE’S product to your customers -To make money selling SOMEONE ELSE’S product back to THEIR CUSTOMERS.

Eh? All will become clear later Making money selling your product to someone else’s customer. This assumes, of course, that you have developed or sourced a product which you can call your own. When you have a successful product which you have promoted yourself then is the time to consider approaching other people with a view to offering it through their customer base.

Obviously the product should be in the same niche as those bought by the customers of your potential partner to have a good chance of success. So what is the advantage to your partner. Well if YOU have a successful product which would be of interest to his/her customers then the chances of sales must be very good. Since your partner hasn’t had to develop the product and all the sales literature etc is already available the costs to him/her are negligible especially if promoting over the internet.

This means that they are getting 50% of the profits “for peanuts” plus building up higher esteem in the eyes of their customers.

What then is the advantage to YOU.

The main advantage appears to be that you should sell more of your product. However the more important aspect is that you increase your list or customer base assuming that you can come to an agreement with your partner that any person who buys joins YOUR list. This can be a grey area. Your partner will not be happy if he/she thinks you are just trying to pinch his/her list!

If you are honest you are trying to get more customer names as well as selling product. So if your partner sends the information out to their contacts with an endorsement and allows you to have the contact information for those that buy then you have a win/win situation.

The ideal situation is to offer a product which is relatively cheap with the possibility of selling higher ticket items to YOUR NEW CUSTOMER BASE later.

Making money selling someone else’s product to your customers Basically it is the mirror image of above. You will get 50% of additional sales for very little work plus helping your own customers and increasing your image in their eyes.

I hope it goes without saying that you should first do due diligence to ensure that the offer is genuine and will not embarrass you in front of your customers. Making money by selling someone else’s products back to their customers.

What does this mean? Well if you think about it there are many people who do not know how to market effectively either off or on line. Let us consider an example. We have a little local model shop which sells model railways etc. Obviously they only have the possibility to sell to fairly local enthusiasts. However they have products which probably have a regional and even a national appeal. By approaching the owner and coming to a joint venture agreement you can use your marketing experience to offer your partners products to a much wider audience. A mail order system can easily be set up to distribute the goods. So both of you gain by earning a lot more “dosh”. HE/SHE gains by selling a lot more product with very little extra costs. YOU gain by earning 50% of the extra profit with very little outlay or effort on your part. By producing a newsletter to send regularly to the clients which gives the latest information on their hobby you can make even more sales by promoting other items. Another win/win situation.

So put your “thinking cap” on and look at your local merchants to see who you could help. Think “outside the box” to make a lot of additional income with NO product and little extra effort.

To YOUR success John Beaumont Internet Marketer