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Overview:
Discover the lucrative strategy
behind endorsing someone else's products - and why this is almost
always the easiest way to generate additional (and substantial)
profits for practically no effort at all...
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What
is a JV Endorsement?
A
joint venture endorsement is simply when one business recommends
another product, service or event to its current customer base
(or prospect base - or both).
The
endorser gets a large percentage of any sales that the "endorsee"
pulls in as a result of the event - thereby earning a great
deal of revenue for little "effort".
These
types of endorsements are exponentially more effective
than simply advertising - because what makes an endorsement
so powerful is the fact that what's truly being leveraged isn't
the size of the endorser's "list" - it's the
depth of their relationship with their clients.
A
relationship that took a great deal of time, money and effort
to build.
In
other words, a joint venture endorsement is the act of leveraging
someone else's reputation so as to produce an unusually
high response to a targeted offer.
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A
Good Reputation is Worth it's Weight in Gold...
And
believe it or not, it's one of the most under-utilized
assets of almost any given business...
You
see, it's not necessarily the "product" of any given
company that consumers purchase. Consumer's are purchasing what
the products represent - be it a "feeling",
a "purpose" or even "hope".
Now,
beyond that, it's the reputation of any given company
that will drive a consumer to buy the "product" from
them, and not their competitors. This is why so much time, money
and effort is expended in order to build a strong, trustworthy
and unique persona around any given business.
When
it comes to joint venture endorsements, the most important component
of the reputation - or, the component that is leveraged the
most - is the "trust factor".
However,
this is not to be taken lightly. A well thought-out JV endorsement
that benefits the customers in question will be extremely
powerful, both in terms of generating profit, but more importantly,
it will actually build a higher degree of trust for the endorser
(and endorsee, indirectly).
For
the simple reason that the endorser will be going out of their
way to scout out additional tools, solutions and answers for
their current clients - that they wouldn't have had otherwise.
Everyone
wins:
•
The
"endorsee" usually receives a substantial amount of
revenue, new customers, new prospects (that they can sell to
over and over, indefinitely), and leveraged exposure that simply
could not have been produced by advertising (because it leverages
the endorser's reputation)
•
The "endorser"
receives a substantial amount of revenue (almost always
more up-front than the endorsee) - for simply leveraging a resource
they already have. They, in some cases, may even grow their
current client or prospect base due to the "buzz"
that an effective endorsement can create.
•
The customers
receive an opportunity that they wouldn't have either had or
known about otherwise, such as an exclusive price, specialized
information, or "invite-only" access to a certain
offer. Additionally, the customer is being involved within the
context of an event, which will hold some entertainment value
for them, and possibly a sense of belonging as well.
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JV
Endorsements are "All or Nothing"...
This
applies to several aspects of the endorsement:
First
of all, I would strongly suggest downloading the Joint
Venture Checklist
Endorsements
are a very broad topic, and though we don't have enough room
to get into the details, the following is a brief guideline
for conducting an endorsement JV:
(These
are written for the "endorsee", but the principles
apply to everyone involved...)
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• Make
sure that your message will be targeted. Only approach businesses
that reach your precise target market. An untargeted
(or "sort of" targeted) offer simply won't be worth
the time of setting it up.
• Put
your potential partner under the microscope. Talk to other
people that do business with them. Buy their product or use
their service (beforehand). Join their newsletter. Take a very
good look at how they treat their clients. Remember, the only
endorsements worth doing are those with another business that
has an impeccable track record and a strong relationship with
their client base at large. Go with your "gut instincts"
on this - you'll usually be dead on...
• Use
proven copy. This is the most overlooked part of
any endorsement. Test your endorsement mailing and/or sales
letter before you move ahead
with the JV. If you're doing this online, you can easily test
your salesletter by directing PPC traffic to the landing page.
If you're planning on doing it offline, run some classified
ads, or possibly a small direct-mail campaign. Once you have
proven copy, you can also test the endorsement by having your
JV partner send out two or three "test" mailings,
to small portions of their "list".
Note:
This isn't some sort of flaky "smoke and mirrors"
game. It's serious business. It has been continually proven
that even by changing ONE word in your headline, you can change
your response rates dramatically. I'd really recommend learning
the mechanics of copywriting, which is clearly
explained in "The
Secret Weapons of a JV Master".
• Get
Serious. Joint Ventures are not to be taken lightly.
Just because it's "free" doesn't mean that you should
haplessly throw something together and hope for the best.
In fact, JV's are far more serious than simply advertising.
Both your own reputation and the reputation of your partner
are on the line - literally.
•
Work Hard.
Make sure your promotion will be a smoothly-oiled "machine"
- and make sure that you double-check every last detail before
you "broadcast". Just think about how much the
wrong phone number or "order link" could cost you!
Always
remember how much of an advantage you'll truly have by leveraging
the resources that took someone else years to build.
Don't waste the opportunity - give it 110%.
•
Cover
your Butt. Make sure you and your partner have an
agreement in place that protects both of you should anything
go "wrong". Also, have a plan in place regarding:
-
Dealing with refunds
-
Payment schedules
-
Tracking sales
-
Who's responsible for what
-
When does the partnership end
-
Who gets what (ie. client lists, intellectual property, etc.)
-
Non-Disclosure agreements regarding sensitive information
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Miscellaneous
Endorsement Tips...
Try
it before you have them buy it. If you endorse a
low-quality or downright awful product to your client base,
you will surely lose whatever amount of rapport and trust you've
been able to build up until that point. They will clearly
see that you simply want their money, and you will have to work
very hard to heal that "wound". Just one
careless endorsement might actually be enough to destroy
your business.
So
don't promote garbage, whatever you do!
Sometimes
it's not about the money, and
some companies won't be interested if you offer them a share
of sales - probably because they simply don't understand the
concept of joint ventures. In this case, offer to give their
customers some sort of "gift" or "one-time-offer"
to make them look good.
Note:
Cross-endorsements often work with companies that aren't comfortable
with a typical joint-venture (revenue sharing) arrangement.
Don't
just limit endorsements to "one-time deals". Joint-ventures
are often structured to simply be a "flash in the pan"
approach to leveraged marketing. While large, focused events
can generate "buzz" and momentum around a product,
it is almost never as profitable as a long-term arrangement.
See
if you can kick off the "endorsement campaign" with
an initial client-base notification, and then integrate
ongoing referrals/endorsements into already existing
distribution channels, such as "upselling", product
bundling and bonus incentives.
If
you're the endorser, be very specific with your clients.
Clearly explain the benefits of the endorsement to your "list",
but don't mislead them. It's okay to be specific about what
you'll be getting out of the deal if they make the purchase.
Your honesty in this matter will only help sales, not hurt them.
(This isn't always applicable or necessary).
As
an endorser, promote high ticket items. It's easier to sell
10 products for $1000 each than it is to sell 1000 products
for $10 each. Also, look into endorsing products or services
that can provide you with a residual (ongoing) income, such
as subscriptions, residuals or certain financial products.
Send
the Offer TWICE. This is the most overlooked part of almost
every JV endorsement. Often, some leads simply won't be in a
"buying mood" the first time around, and you'll drastically
increase your sales by sending the offer out twice.
Go
Big. Most often, it's the larger-sized operations that will
be interested in doing endorsements as a joint-venture. So approach
them first before you go after the "little guys" with
a smaller client base.
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In
short, as either an entrepreneur with a new product, or an established
business with a loyal client base, an endorsement joint-venture
is, without question, the fastest and easiest way to legally
add a few "zero's" to your bottom line.
Do
your due diligence, but at the same time, don't be afraid to
truly leverage this strategy with a vengeance.
-
Chris
Rempel, JV-Web.com
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