The term Joint Venture or JV is one that is thrown around a lot online today, but after reading many books written by so-called Joint Venture experts, it becomes obvious that most people miss the extent to which JVs can be used to increase profits. has business. Most of these experts will tell you that a joint venture is when a company sends an offer to its customer database promoting another company’s product or services and receives a commission on the resulting sales. This form of JV is also known as a host-beneficiary deal, a phrase coined by Jay Abraham.
In reality, joint venture marketing can be so much more. A joint venture is any marketing promotion that involves 2 or more organizations for mutual benefit. If you were to walk into any McDonalds store today, you would find several JVs in action. Take a look at your children’s food and you’ll probably find a toy from a company looking to promote their toy brand or their latest movie.
When you expand your thinking, you instantly expand your opportunities to benefit from JVs.
Let’s look at some of the benefits you can enjoy by including joint venture marketing tactics in your marketing mix.
1. You can set up joint ventures to get more clients. Customers who are already aware of the benefits of your company so they only want to buy from you. When your JV partner endorses and promotes your product or service to people who know and trust your business, you get instant customers who want to buy from you.
2. Joint ventures can be used to leverage thousands, possibly even millions of dollars of other people’s advertising capital. Your JV partner has invested a fortune in your business to get the next customer you have. When they promote your business in their database, you get instant access to that valuable investment.
3. The right JV will add additional streams of income to your business and require no additional work or investment on your part. You can promote the services of your joint venture partners in your database and get paid a percentage of the sales generated. The money you earn is pure profit from day 1.
4. JVs allow your business to tap into the resources of other organizations.
5. JVs allow you to capitalize on your company’s hidden assets.
6. Your business gains credibility in the eyes of the customer when you associate with highly respected businesses.
7. You can grow your business significantly without spending a single penny on traditional advertising.
8. You gain more control over customers buying clothing, allowing you to control downtime for your business.
9. JV relationships are a great way to differentiate yourself from the competition and establish your business as a market leader. The most powerful advantage you can give your business is to do something totally different because when your business is unique, by definition there is no competition!
10. JVs can be used to encourage your customers to spend more money, more often.
11. Low cost advertising. Traditional advertising can be expensive. Joint venture marketing can save you that expense by allowing you to promote your business for FREE.
12. Fast, effective and results-oriented advertising. Joint venture marketing is a direct response marketing method, which generates immediate results.
13. Wholesale advertising. Cash is the only form of business in traditional advertising, but joint venture marketing allows you to give away samples of your product or service to gain new customers, so your only cost is the wholesale value.
14. Increase profits by creating an “amazing experience” that drives referrals and word of mouth. Giving away free gifts and running generous promotions gets people talking and recommending your business – another FREE method of advertising!
15. Dramatically increase customer loyalty. Customers will generally remain loyal to companies that treat them well and provide them with massive value.
16. Lower your cost of customer acquisition. Joint venture marketing brings new customers to your business at a fraction of the cost you would expect to pay in traditional advertising.
These are just some of the benefits…they are endless!