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.