What is a Joint Venture on the Internet?
I was answering a few questions from a forumer at Gobala Krishnan’s internetmillionaires.com.my membership site about joint venture. I thought it would be a great idea to share it with you here. So, here is my view on joint venture.
Joint venture is simply a venture of two or more parties working on something to achieve a common goal – and that’s being too technical. But, it’s also a partnership between you and someone else. For example, you could have a product to sell and some other people could be your joint venture partners promoting your product. When sales are made, you pay the commissions to the person who helped you promote your product. An affiliate program is an example of joint venture program but sometimes it’s less interactive on a personal level.
Benefits of a joint venture is… you can get your product sold not only by yourself but with the help of others (this is for the product owner) or you could be making money by selling other people’s product (this is for the marketer).
On a higher level of joint venture, you want to know who your joint venture partners are so that you can work closer to achieve better results. This would involve long term relationship that could sometimes require you to meet your joint venture partners. The trust that you build among you and your venture partners will worth hundreds and thousands of dollars in the future.
A simple real life example is what Gobala is doing. Meet with you guys and help you build your online empire. In the future, you will probably work with Gobala (and vice versa) to achieve better results. That’s a long term forward-looking and a bright idea after all.
For me, there’s no specific conditions of a joint venture unless it is very necessary. With the help of technology, we could do the sales tracking and commission credits easily. The rest would be build a great relationship among joint venture partners (or affiliates).
That’s my definition of a joint venture. Others might have a different view. How about yours?
Zamri Nanyan
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Zamri,
Thanks for your definition on joint-venture. I think joint-venture can be explored further. Two or more guys brainstorm a product together and promote to their own list. Two or more guys pool together their products for a giveaway event. Joint promotion between a guru and a newbie. Like what you’ve said, this jv relationship should last long for future profitable project.
Jaffa,
Yes, it can explored further and marketers should be creative to come up with joint venture idea. What you mentioned above is only a few of the good ones (thanks).
Sometimes a simple little joint venture idea will probably produce a much more greater result. So, don’t underestimate the power of a JV.
Zamri
Hi Zamri,
You got it right on the dot. Frankly I never done any JV for online business but conventionally yes I did. So it it the same but the medium is different. May I add few points here.
With JV marketing we could ….
a. build a long lasting relationship,
b. increase credibility by teaming up with other well known people like you, gobala, etc,
c. get discounts on products or services,
d. save money on business operating cost,
e. get free and low cost advertising,
f. target other potential markets,
g. expand and grow your business quickly . . .
and I think there are many more reasonings.
Hi Zam,
Great post on JV and i would like to share something about this topic.
People sometime mistaken affiliate to be the same as joint venture. I would think that JV is a big thing than just simple affiliate.
I had one experience couple of years back when i was starting my online business. I was having a product in a niche market and it was doing well and my list was just growing. It was still a small list during that time.
Then one day, i receive a JV request from one guy and we agreed to send our product vice versa. But i have told him that my list is not as big as his list but he agreed and told me that he would just send the same number to his list as mine.
We were having the same niche but not really same in a sense that the niche has a sub niche. even though we have the same niche but it’s a two different sub niche and we were aware of it and go ahead.
I was only having a list of about 700 at that time so he told me he will also sent only 700 of his list my product.
And fair enough, out of 700 in my list, only 2 convert to buy his product whereas he converted 126 out of his 700 list!
It a matter of same niche but having 2 different sub nicheand this JV partner of mine were piss as hell and started black balling me.
We agreed to something but he just couldn’t accept the fact that my list did not bite on his product. So he started to post in forum and making black remarks about my site at that time. But luckily, those people don’t fall for it because we understand that it is a product of 2 different sub niche and we will not know the outcome until we try it.
But in a way, when people try to give you a bad publicity, sometimes it can turn out to be good publicity for your site because all of us internet marketers knows that we shouldn’t black ball other site. We should complement and grow together.
After all these long winded talk, my point is, when selecting JV partners, we have to make sure they are the right partners and we have to agree to certain grounds that their or our product might not appeal to the list and vice versa. And no matter what happen, we have to accept it and try to improve.
As for affiliates, they just come and go and if there’s sales, it’s a bonus for everybody and if not, hey that’s just too bad. maybe the sales copy or the presell email screwed up.
Just my thot to share with you and the rest.
Keep in touch brudder.
KR