A joint venture is an agreement between two or more individuals or businesses whereby both contribute to a joint business endeavor. They share in the expenses associated with the project and they share in the profits realized. JVs are very common in the brick and mortar world, as well as, in the online world of Internet marketing.
There are basically two types of JVs... the Insider Joint Venture and the Outsider Joint Venture. Both kinds are profitable the difference is who the partners in the agreements are.
The insider joint venture agreement allows all parties to it access to the same private areas of the business such as the administration panel, accounting, sales records, and other insider's knowledge. The product or service that is the focus of the agreement is usually developed as a joint effort by the parties to the agreement. Ownership of the product or service is jointly held.
The Outsider Joint Venture is the kind that is most common in the Internet marketing arena. In this kind of joint venture, there are no common administration panel, accounting or sales records. Each entity remains separate. Usually an individual or company has developed a product or service but has no customer base to market it to. The individual or company will approach an established marketer who does have a customer base, list or market share that would be interested in the product or service. They enter into a joint venture agreement where costs of marketing and profits made are shared. Sometimes there is an even split and sometimes the split is on a percentage basis other than 50/50.
The JV enterprise can be profitable to all parties to the joint venture agreement and the cost of advertising is minimal. JV is an old idea that is being made new again via Internet marketing.
There are so many benefits of entering into a joint venture for a new Internet Marketer. Have you ever heard the old saying, "It's not what you know but who you know that matters"? Internet marketing is the embodiment of that saying. Established Internet Marketers have spent years building lists of potential customers so they certainly know the right people to market to.
The new Internet Marketer needs to gain access to those lists of the right people in order to break into the Internet marketing arena and joint ventures are the way to do that very thing.
Here is just five of the overwhelming number of benefits available in a joint venture with an established Internet Marketer for the newcomer:
1. Access to a potential customer base that would otherwise be inaccessible. Established Internet Marketers have lists of customers that would be most likely to purchase the product or service you are selling.
2. The possibility of establishing a good working relationship with an established Internet Marketer that could turn into an ongoing and mutually profitable arrangement.
3. Associating yourself with a successful partner can help to establish credibility for you and open many doors. Your joint venture partners' credibility will be passed on to you simply by association.
4. A joint venture can help you to build your own opt-in list. The all important opt-in list is the backbone of Internet marketing. Building lists takes years but with a successful Internet Marketer as a joint venture partner, you can cut the time needed in half.
5. You will be guaranteed a much larger response to your new product or service than you could ever hope to generate on your own.
The joint venture is the best and quickest way for a new Internet Marketer to become established.
Benefits Of Joint Venture
A joint venture is an agreement in which two or more businesses work on a project for a set period of time.
Joint ventures can be long-term, like promoting a product together, or some can be short-term, like bartering (trading) products and services. Joint venture ideas are virtually endless.
Now The Benefits Of Joint Venture Marketing
You can build long lasting business relationships.
You can increase your credibility by teaming up with other reputable, branded businesses.
You can get free products and services.
You can construct most joint venture deals with little or no money.
You can gain new leads and customers.
You can get discounts on products and services.
You can save money on business operating costs.
You can beat your competition.
You can gain referrals from other businesses.
You can solve your business problems.
You can save valuable time.
You can get free and low cost advertising.
You can offer your customers new products and services.
You can survive a depression, recession or a slow economy.
You can save money by sharing advertising and marketing costs.
You can target other potential markets.
You can expand and grow your business quickly.
You can gain valuable information or skills.
You can increase and protect your cash flow.
You can find new profit outlets.
You can become rich and wealthy.
You can start almost any business at little or no costs.
You can get rid of your extra inventory.
You can reduce and eliminate your debts and avoid bankruptcy.
You can afford to sell your products at a lower price.
You can increase your opt in or ezine subscribers for free.
You can get your web hosting and design for free.
You can save money outsourcing your workload for free.
You can find hidden income streams.
You can exchange useless products for profitable zones.
You can create new business funding and credit lines.
You can reduce your taxes.
You can find and create new distribution channels for your products.
You can give your employees more raises, bonuses and benefits.
You can even trade non business stuff to improve your personal life.
You can increase your sales and profits.
You can send your ad to huge, targeted email lists at no cost.
You can eliminate employee hiring costs creating barter outsourcing deals.
You can build your customer or opt-in list for free.
You can build profitable alliances with other businesses.
You can learn insider information from other experts at no cost.
You can test your product for free.
You can out-sell other affiliates much easier.
You can increase the number of affiliates that sign up to your reseller program.
You can offer more bonus products and incentives to buy.
You can get highly credible endorsements and testimonials from other experts.
You can quickly increase your ezine subscribers.
You can offer your products at lower prices than your competition.
You can easily find new up sell and backend products to sell.
You can create products faster and with less effort.
These are only some of the benefits. They really are endless!
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