Why Should You Propose A Joint Venture With Your Competitors?

If you want to classify possible partners for a joint venture, you should check out your competition. You might think that this is a crazy suggestion, however, the fact of the matter is that whilst your competition is selling to new customers as well as prospects, the customers are not really purchasing anything.

 

Moreover, customers who have bought from competitors previously are not buying anything any longer. These are what we term as ‘dead leads’ and former customers are termed ‘expires.’

 

In the event that you are able to convince your competition to allow you to sell to their expires and their bad leads, there is a joint venture waiting to happen. You may wonder how this is at all possible.

 

You need to remember that the prospects that stopped buying were looking for solutions to their problem. They were searching for something to buy. The reason for this is that the competitor’s products just did not fit their wants or their needs. This could be for a variety of reasons including:

 

• Price
• Color
• Design
• It had the wrong feature
• It lacked something the customers were looking for

 

These are the reasons the dead leads did not buy. Next, remember that your competitor already spent for the marketing to sell to the expires and the bad leads. Undoubtedly, the competitor will keep selling to them for a time but really, the lead will eventually ‘go cold’ or disappear.

 

This is the time you want to get them. You can go to your competition and tell them that there is a process where they can make money out of dead leads. This is when the joint venture can take place. You can sell products to the dead leads of your competitor and paying your competitor a percentage of sales or buying his dead leads from him.