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?