|
Without
a doubt, the most difficult part of Joint Venture marketing
is finding a
willing partner.
Joint ventures
are a very non-traditional way of doing business. As
a result, the majority of business owners are either unfamiliar
with JV's / strategic alliances, or they're skeptical due to
misconceptions - and this is what makes it so lucrative.
And the
only way to overcome this resistance is to first understand
it...
Most business
owners, quite possibly just like yourself, know the value of
hard work. They know that there is no such thing as a "free
lunch" in life - much less free money. They've invested
blood, sweat and tears into building their business from the
ground up, against the odds and at the sacrifice of comfort,
security and maybe even the temporary well-being of their family.
For someone
to approach them "out of the blue", promising unheard-of
profits for little or no effort will seem like an insult to
their intelligence, as well as directly contrary to their belief
system.
They'll
default to thinking that you're a salesman - simply trying
to weasel them out of their hard-earned money. In reality, this
is a half-truth. You do want something from them (cooperation)
- but they'll benefit from it just as much, or possibly more
than you in every possible way...
Therefore,
your primary aim is not so much to "pitch the deal"
as it is to win the trust and friendship of your potential business
partners - and after that, to educate them about how to
leverage assets they've already worked for so that they
can increase their profits dramatically.
Note:
To stack the cards in your favor right from the start, look
for partners that already understand joint ventures -
or ones that openly seek them out. (See: "How
to Find JV Partners and What to Look For").
Building
a Relationship is Key...
First
of all, I'm not saying that you have to spend months "wining
and dining" your potential partner before you pop the question
- not at all.
Instead,
start thinking of a "proposal" as a multi-step process
- not simply a pitch about a money-making deal.
People
generally don't like working with others unless they know them
well - or like them. This can happen in a matter of minutes
for some people, or it can take weeks, months, or longer for
others. It depends entirely on your prospect and in some cases
the size of the deal.
Here
are some tips for building relationships in the proposal process:
•
Make
them feel important and valuable.
Instead
of sending them a hard-sell proposal loaded with details and
percentages, send them a quick note that starts off by briefly
explaining your interest in finding a partner because you want
to grow your business...
Then
ask them how they're doing with their business.
Or perhaps you could congratulate them on a recent achievement
based on your research by asking them "how they pulled
it off".
This
puts them in the "expert" seat, and it makes them
feel important because you're asking about their business. Most
importantly, they'll see you as being sincerely interested in
their well being - and that will go a long way when it
comes to building trust - and ultimately, a joint venture.
•
Buy
their product or use their service first.
If
it's applicable to your situation, you might find that it's
alot easier to get "in" with them if you start off
by purchasing their product, advertising on their website -
or by offering to help them in some other way.
It's
been my experience that this is often well worth the up-front
"investment". You can use the chance to compliment
a product or discuss advertising as a way to start building
rapport - as well as subliminal interest in working with you.
•
Find
out what you have in common.
If
possible, find out if they share a similar interest or hobby.
This "link" can be extremely powerful in building
rapport - as well as getting to know them.
People
generally get excited when they can take a "break"
from their daily routine by talking about their interests with
someone who shares their passion. They will begin to associate
"you" with the things that they enjoy. This will
exponentially increase the chances of them saying "yes"
to your proposal or offer.
Chances
are, they'll probably look forward to it...
Note:
See a real-life example of how to turn skeptic prospects into
willing partners by reading our case study on Gabriel Howes
called "How
to Make JV Prospects Approach You"
Pitching
the Deal and Negotiating the Details
Joint
Venture proposals are explained in depth at "How
to Write a Killer Joint Venture Proposal", but
in brief, here are some guidelines for a JV Proposal:
•
Focus
on their benefits. And
make those benefits substantial. For example, if you're pitching
a product endorsement, give the endorser the majority of the
profits - while the product owner makes a killing on
backend sales later on...
•
Stress
the simplicity of the deal for them, and emphasize the weight
of your workload. Be
honest, but make it sound like they're getting the "upper
hand" of the deal. Because in reality, they are.
•
Be
very specific about the details.
Being vague will only create confusion and possibly distrust.
Be sure to include things like commission percentages, realistic
projections based on FACTUAL data (such as current sales letter
conversion rates), additional benefits, etc.
•
Educate
them about the real value of joint ventures: Backend
Profits. Explain
to them that each new client is very likely to buy from them
again, and again...
•
Keep
it Personal. Don't
make it sound like you're selling them something, because you're
not. Pitch the deal within the context of your current relationship
- don't be "over-professional".
•
Make
your offer absolutely irresistable.
Do anything and everything that you can to make this offer so
good that they'd be a fool not to jump on it.
After
they've accepted the offer, you may have to negotiate with them
to ensure that the deal is optimized for everyone involved.
Remember that a Joint Venture isn't a transaction - it's
a win/win partnership for both of you.
Negotiating
is simply finding the "sweet spot" where everyone
experiences the maximum amount of benefit. Be willing to bend,
but don't let them walk all over you. Keeping the backend profits
in mind, always look to create a winning situation for everyone
involved.
Again,
be sure to stress their benefits throughout the entire
process.
--------------------------------------------------------------------------------------------------
Building
relationships is the key element of success when it comes to
joint ventures - and for that matter, every other area of business.
Solid relationships with your JV partners will prove to be
a lifetime resource of support, feedback and profits.
Ultimately,
this network of friends and business partners will become far
more valuable than the dollars they generate.
-
Chris
Rempel, JV-Web.com
|
