It is a good way to help build a mailing list of potential customers as well as expand the number of opt-in contacts for future marketing. A 2005 consumer marketing report showed that statistically around 25% of all marketing is done jointly between related companies.
An example of joint venture marketing would be for a software company to team up with a computer manufacturer to advertise a special deal on computers that include said software or vice versa.
The end result is that the customer gets both a good computer and a good software program already on it for a special price and both companies would have another customer to contact with future offers. Joint venture marketing has been described as a win-win-win situation.
There are variations on this theme. One company which is already well known may be convinced to merely provide an endorsement for the new product you have for a cut of the profits and contacts.
They may provide their own mailing list for a joint venture with you for such compensation. While some joint venture deals may not always make you a fortune, they do help set up the potential for greater income in the future.
When comparing the advantages of joint venture marketing against the possible disadvantages it is easy to see why so many people utilize this trend. Together you can share the expenditure of time and money on the advertisement creation and distribution.
You can use the venture to increase your market base and find new ways to direct your business focus. You can learn from each other. Even successful businesses can profit from the ideas of new people to the field.
At the worst you have wasted some time and a bit of money on the venture, but shared loss will also protect you from being totally bankrupted by a failed venture.
Loss of reputation by partnering with someone who proves a bad business practice can also set you back. It is advisable to study a company and its practices before proposing a joint venture with them.
Joint venture undertakings can be one-off events to help solidify one's place in the market and if successful can then be expanded and made more permanent if it is to the mutual advantage of both parties.
Joint venture marketing should not be confused with strategic alliances. These types of mergers are more along the order of creating one company from two, whereas the joint venture partners are still separate corporate entities.
Make sure you have a product or service worthy to partner with other successful people and you can use joint venture endeavors to create additional income streams that are profitable for everyone involved.
