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What's the Big Deal about Joint Ventures?

First of all, let me start off by explaining what a joint venture is:

"A joint venture is a mutually beneficial partnership between two or more parties with complimentary resources."

There are several reasons for doing this, but in general a joint venture is quite literally the most powerful and effective form of marketing, positioning and client acquisition on earth, without exception.

Typically, the most common example of a "JV" (joint venture) is where a company that has a product, but no customer base, approaches another company that already has a customer-base and market share. Both companies will somehow complement the other (ie. someone selling a new type of CD Burning software could approach the company that actually makes CD Writers about co-marketing or integration).

The company with the product offers a certain commission on each unit sold to the company with the customer list/database. The other company (the one with the customer list) will then promote that product by either endorsing it to their customers, integrating it with its complimentary products/services, or referring customers to it in some other way.

This type of arrangement will allow a "nobody" company to reach an enormous amount of customers (and sales!) almost overnight by leveraging the assets of an established, complimentary business. Assets that took that company years and years to build.

Joint ventures have almost exclusively been responsible for the world's "fastest" fortunes, and are responsible for literally trillions and trillions of dollars in the United States alone.

The Man with the Billion-Dollar JV...

For example, Bill Gates integrated his original "DOS" program (Microsoft) with IBM's already huge market share in personal and commercial computing.

Gates negotiated a deal where IBM computers would come pre-installed with a Microsoft Operating system (MS DOS) - but under the condition that Microsoft would be entitled to lifetime upgrades for its software. This gave him the positioning he needed when the PC market was ready to explode...

And it did explode! When both IBM and the "IBM Clone" companies (like Compaq) started mass-producing personal computers by the millions, this single joint-venture (integration) turned Microsoft from a "small-time vendor" into the world's largest software corporation.

Microsoft had the product.

IBM (and the "clones") already had the market.

They partnered out of mutual benefit, and as a result, Bill Gates became a billionaire before he was 31 years old.

Yes, this is an "exceptional" example - but the principles are exactly the same for any other business. Whether you're selling hot tubs or gift cards, creating a partnership with a complimentary business out of mutual benefit can literally accelerate the success of your own business at a speed that you could never achieve on your own.

In fact, you can even develop partnerships like this with your competitors. Yes, you read that right. This is called a "strategic alliance".

One of my clients is currently in the process of setting up a "strategic alliance" with one of his competitors. I suggested that he partner up with another manufacturer and offer their customers a free trial for our product inside the box of every product that his competitor sold.

It was important to reach the competitor's buyers, not prospects, because that eliminated the competitive element to this partnership altogether. They would only hear about our product after our competitor's product had already been purchased (the competing products are quite different and have different strengths, so it benefits customers to have both products).

This allowed us to be able to advertise for "free" to a highly targeted and pre-qualified market of consumers that had already purchased a complimentary product in our niche - and we only paid our partner a commission based on sales made from the arrangement.

It was perfect. And arrangements like this benefit EVERYONE involved. Our partner got a very substantial commission per product sold, and he almost doubled his profits overnight just by sending out a tiny flyer inside each of his product boxes.

My client's product sales rapidly exploded.

The Bottom Line

Joint Ventures are the fastest way to grow your business, expand your market share and reach your customers, period.

You don't need to be a marketing "guru" or be the next "Microsoft" in order to experience massive benefits of partnering with another business.

This could be as simple as cross-promoting with a complimentary store-front with brochures (if you're a retailer) - or trading ads in an ezine.

Or it could be as involved as integrating your products or services with another company's offering.

Either way, if you dismiss joint ventures as being too "far fetched" or complicated (and they're not), then you're missing out on what could be the single most effective strategy you could ever employ in your business.

The bottom line is that reading this article could be the beginning of an obscenely profitable future for your business - if you put this knowledge into action!

"Wealth is when small efforts produce big results. Poverty is when big efforts produce small results." - George David

- Chris Rempel,


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