A joint venture is a profitable business arrangement in which two people combine their talents, products, skills etc. in order for both to produce two streams of income. It happens constantly in
the retail business, the movie industry, and the restaurant business to name a few. People should not be hesitant to use this technique because everyone benefits.
How to do this:
1.Contact potential joint venture partnerships personally not through e-mail. This kind of meeting will lend credibility to your proposition. Furthermore, you're more likely to be successful this way because You can discuss any hesitations, that the other party may have, immediately.
2. Begin by explaining how it is a win-win situation for both sides. If the other person doesn't believe this will increase the bottom line, why should he waste time listening to you? When doing this be sure to discuss the benefits of backend sales. Once a customer buys once (s)he is more likely to make another purchase immediately. Don't hesitate to request a fair percentage.
The other person's sales will increase also drastically. They will keep all of the profits from backend sales.
3. Discuss your product and offer a sample so (s)he can experience its worth and how it will make their customers more interested in making the purchase. This will make the sell easier and they'll understand exactly how it will enhance their own image and result in additional sales.
4. Explain that you are willing to offer your product at a discount since combining the two resources will actually increase profits in the long run since you will sell more. The partner can improve his image because (s)he worked hard to reach this deal.
5. State and restate that this is a win-win situation and there is no reason to fear a loss of profit.
6. The deal must offer a substantial increase in the other person's profit as well. This is usually the bottom line in business.
7. Present the venture as a very simple proposition by offering to do the bulk of the work. They probably already have an established business and with that comes enough headaches, why would they want to take on one more?
8. Before discussing the details of how exactly they will make money, make sure you have a signed contract that includes the states in writing how you will make money. Otherwise, your ideas can be stolen and the partner will end up profiting totally.
Some suggested joint ventures:
Look for 2 online businesses that both offer products, both offer services, or one of each and explain to them how they could combine and make their profits grow. They may already share links with each other and therefore realize the benefit of joint promotion so that's half the battle.
or two offline businesses that would compliment each other such as a restaurant and a movie theater, this is already being done in many areas. Think of all of the people that eat out before or after the movie anyway- think "date night."
If you are strapped for cash but want to create a really good website, approach a college student who is studying the computer field. Explain to him that you have a really good product but don't want to develop the website yourself. Offer to the person a percentage of the profits in exchange for his design.
No two businesses have exactly the same customer base, advertising methods, or ideas unless they already in this kind of partnership. Why not learn from each other, share resources, and both increase sales! You may already be doing this by posting another owner's link. Since the other person may not be familiar with your product, it is a good idea to exchange testimonials because customer satisfaction is a wonderful selling point.
If you want to approach a big business you may want to first meet with a manager of the local store and then suggest that (s)he take the information back to the district manager. It may mean more coming from that person, who is already a trusted name with the store, rather than you.
Writing the letter of intent:
* Offer a compliment on the person's products or service.
* Explain how they were helpful to you.
* Explain what you do and what products or services you have.
* State that you would like to offer the opportunity to combine your businesses
For the purpose of increasing sales.
* Request that the person contact you to set up a meeting at a convenient time.
* You don't have to have anything but desire to make more money than you have now.
How may I help you?
Answer the questions below before contacting me.
1. Tell me about your business. What are the products sold? What are the services?
2. What are you already doing to in terms of a partnership? Do you have links?
3. What are some ideas you have? What else would your customers be interested in?
4. How can you combine your skills, abilities, products, and resources to benefit you?