The More You Know About Joint Ventures
The More You Know about Joint Ventures
Joint ventures can be a tremendously powerful technique
to amass a enormous flood of traffic, almost overnight. Imagine getting someone
with a list of 50,000 people interested in exactly what you’re selling to
promote your product. The results can lead to a payday unlike any you’ve ever
experienced. There are however some things to consider when looking for a joint
venture.
The
Basics of JVs
First what exactly is a joint venture? A “joint
venture” is a strategic alliance where two or more parties join together to
cross promote each other’s products or services. By joining together, each
party receives access to a new list of potential clients thus creating a
mutually beneficial arrangement for each party.
Let’s say you have an eBook about online dating for
example. Someone else has a “dating tips” newsletter. You two could JV where he
promotes your product in exchange for a commission.
There are almost as many different ways to set up a
JV partnership as there are entrepreneurs. What are some of the factors that
are important when structuring a JV?
Your
Conversion Rate: The #1 Factor
Some say the absolute most important factor in a JV
is your conversion rate. However I disagree. Conversion rate is an important
factor. But if you have small list or just starting out, do not allow this type
of thinking to stop you from approaching possible JV. There are other factors
to consider. But a potential JV partner will take your request more seriously
if you are prepared when pitching your idea. Therefore know your conversion
rate. Nobody wants to test out your salesletter for you.
See how different these two examples sound:
- “I don’t really know if this will
convert, but do you want to JV?”
- “My site
converts at 1% upfront and 4% after 6 weeks of followup. If you send me
10,000 visitors, you can expect to make at least $2,000 upfront and an
additional $6,000 in the next month and a half. In my experience JV
traffic converts twice as well as cold traffic, so you could probably
expect to make $16,000 instead of $8,000 total.”
Which is more professional and persuasive?
How
Do They Know You?
Some of the other factors that may convince a
potential JV partner to work with you is common relationships. Do you share a
mentor? Perhaps you attended the same college? Another factor is that’s not
generally acknowledged: People do JVs with people they like.
If you have a personal friend who’s doing pretty
well and you both think it would benefit everyone to do a JV, wouldn’t that be
much more likely to happen than with a stranger?
Your best chance at getting a JV with someone with a
big list is to meet them in person. Build a relationship with them. Get to know
each other. Have them get to know YOU as well as what you’re offering.
Your second best chance is to build a bit of a
reputation for yourself in your industry, then contact them by phone. Never,
ever try to get a JV via email. List owners are contacted all the time by
email. It’s totally impersonal and you’ll be ignored 99% of the time.
Either make the effort of going to conventions and
events to meet potential JV partners or build a little bit of a reputation and
contact list owners by phone.
How
Good is Your Product?
List owners are usually protective of their lists.
It’s their baby, their life’s work. If they’re going to promote your product to
their list, they’ll want to know that you actually care about what you’re
promoting as well.
Most list owners won’t JV with someone who just
slapped together an eBook overnight. They want to know that you’re actually an
expert with something to say. They want to be sure that you are a person who
genuinely cares about delivering value to his or her customers.
In
short, if you take the time to ensure you have a great product that you care
about and believe in, you have a great conversion rate, you meet with the
proposed partner on common ground, you’re liked by the person you’re proposing
the JV to and/or you meet either in
person or by phone, then you’re very likely to land that killer JV deal.
Tiffani Keaton
Time For Some Action Business Coaching | http://time4someaction.com
The Action Oriented Coach | http://taocoaching.biz
http://www.facebook.com/taocoach
Owner, Tiff's Glitz & Glam | http://tiffsglitz.com
http://www.facebook.com/GetGlammedUp