The Most Common Mistaken Beliefs About Joint Venture Marketing!Ginfo gfive
January 21, 2009
Apart from being the fastest, easiest, and most profitable strategy for
attracting clients and boosting profits in any small business, there
are so many other advantages of joint venture marketing for all parties
involved. So, why aren’t all small business owners implementing joint
ventures?
Here’s a partial list of the most common mistaken
beliefs about joint venture marketing. I’ve picked the top five to
shorten your reading time, but you can listen to more mistaken beliefs
when you tune in to hear me being interviewed by That There’s A High
Risk of Losing Money. If you’re like most small business owners, then
the fear of losing money is inevitable because you’re probably on a
shoestring budget to start with.
However, you can’t lose money
when you’re paying for results only. You only pay out a commission when
your joint venture partners’ clients buy from you. So, you actually get
the revenue before incurring the expense. The only other pre-sale
expenses are production costs and printing/postage costs for letters,
coupons or vouchers. Whether you do joint ventures or not, these are
costs you’ll incur anyway, because you’ll need those coupons or
vouchers for other marketing tactics.
That You’ll Lose Your
Clients. Your clients will purchase other products and services whether
you like it or not. So, it would do your business good to recommend
what they purchase and make a profit from it. In fact, recommending
high-quality products and services to your clients will strengthen your
relationship with them. How? Firstly, you’re shortening their
decision-making process by saving them the time they’ll otherwise spend
on finding and trying out those products and services. Secondly, by
arranging exclusive discounts and bonuses, you’re saving them money. By
saving them time and money, you’re adding value to what you already
offer your clients, and this will therefore strengthen your client
relationships.
Those Doing Joint Ventures Will Eat Your Profits Most
small business owners would rather struggle to get clients, and get
mediocre profits at best, instead of sharing the profits with a joint
venture partner that sends clients their way. They don’t realize that
joint venturing actually eliminates the risk of wasting money. For
example, when you pay for an advert, you have no clue whether it will
generate responses or not. So, you’ll lose money if the ad fails. With
a joint venture, you only pay for results.
Of course time and
effort go into the preparation. However, joint venture marketing is one
of the very few strategies that don’t take much effort or time to
implement. If you’re joint venturing with people that are in your
network or people that can be introduced to you by someone in your
network, then the relationship-building process is shortened. This is
because you and your joint venture partner already know, like and trust
each other, or you have a mutual friend that introduced you to each
other. For this reason, it can take as little as thirty days to execute
your first joint venture. On the other hand, if you’re approaching a
joint venture partner that is a cold contact, the time you’re looking
at is the relationship-building time. If you have great networking
skills then you should be on your way in a few weeks or a few short
months. It simply boils down to evaluating each other’s character and
business.
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