Joint venture marketing can be a very successful growth strategy for businesses. Partnering with other companies to form a join venture and take advantage of each others client base can open up new potential that was otherwise not attainable. These strategic alliances should create win-win situations for both partnered businesses, and end consumers.
The most obvious benefit to business growth is the new pool of prospects that become available. Both businesses in the joint venture can access each other’s client lists, prospect databases and marketing resources, depending on the specifics of the partnership.
Forming strong alliances in this way can reduce the time and resources needed to build your business, taking a lot of the hard work out of starting from scratch.
What Is Joint Venture Marketing?
Here’s the dictionary definition of a joint venture
“A commercial enterprise undertaken jointly by two or more parties which otherwise retain their distinct identities.” – Oxford Dictionaries
In marketing terms, a strategic business partnership, such as a joint venture (JV), allows two companies to implement marketing campaigns aimed at their combined customer lists.
Each company will NOT be in direct competition with each other, but have common customers that would benefit from both products or services.
Joint Venture Marketing Examples
There are various joint venture marketing strategies businesses could leverage to help grow their business and online presence. Two examples include:
- Email Joint Venture: businesses could introduce and recommend their partners products or services to their own email databases. This would be reciprocated by both parties and help generate business interest and purchases quickly. This strategy works well for companies with a short sales process (i.e. eCommerce sites) and can include arrangements such as equal profit share agreed in advance.
- Content Marketing Joint Venture: businesses with active blogs and social media strategies can leverage each others online assets to increase their scope and reach online. Promoting each others business, products and services can not only generate enquiries in the short-term, but also in the long-term through content being indexed and searchable for customers to find through search engines down the line.
Joint venture marketing agreements like these should be strategically positioned to best fulfil the partnership goals and to suit both partners equally.
Joint Venture Marketing – Strategic Business Partnerships Video
Joint Venture Marketing Benefits
In the early days of your business, it could prove difficult to attract the right joint venture partners. It stands to reason that the more established companies won’t gain as much benefit from a joint venture with a new business with much fewer resources.
But once a strategic partner on the same level as yourself is found, then there are many benefits to joint venture marketing:
- More interest and enquiries
- More revenue
- Increases scope, reach and exposure
- Increases credibility
- Bigger mailing list
- Wider online content
- More links for SEO
- More traction in social media
- Increases website traffic
- Faster marketing
Joint venture marketing is still in its infancy, but nonetheless is very effective in driving traffic, exposure, ranking and profit to businesses. Companies can gain instant access to quality traffic and capitalise on the reputation of your partner to boost your own reputation.
Joint Venture Mistakes Infographic
Although joint venture marketing, when undertaken correctly, can be a very powerful strategy for growing your business, there are some common mistakes that you should seek to avoid from the off. Check out the infographic below by Fernando Biz on the 10 most biggest joint venture mistakes to avoid.
The top 10 mistakes in the infographic below are:
- Approaching a JV Partner when he is busy
- Inviting a JV partner with a short notice
- Nothing value to offer
- Not is the same niche
- You’re Nobody
- The “Me First” Approach
- Showing signs of desperation and use of Guilt
- No Back end one time offers
- Lousy Sales letter With Poor or No Promotional Materials
- Poor Leadership
5 Types Of People To NOT Form A Joint Venture With
Not all joint ventures are created equal. Some JV’s can lead to more headaches than they’re worth. Others can ruin both your business and your reputation.
Sadiyya Patel outlines 5 types of people that you should never form a joint venture partnership with (click here to read) and describes why each type of character can be particularly bad for your business.
How To Form A Marketing Joint Venture
Start by creating a shortlist of potential partners in your niche first. To avoid this getting too time-consuming and over-complicated, write a list of your perfect and not so perfect prospects. Look at the nature of the business, the purpose, the product or service portfolio and any other key factors depending on your business (location, size, technology etc) when researching potential joint venture partners.
You may only reap the benefits of a joint venture if you will find the right partner. You should create a list of the key requirements of an ideal partner, plus what you can provide to them in exchange. There are also risks involved, so make sure that the joint venture will not be a waste of time and resources for both of you.
Once the research is done, reach out and contact each person or business on your list. Establish and strengthen relationships with each of them by getting in touch by phone, by email and in social media regularly. When the time is right, give a precise proposal on how and why you think a joint venture would work and the potential benefits to their business. If they share the same vision and see it as a win-win situation, as you do, then it could be very straight forward to forge.
Remember to be realistic in each of your expectations, especially when you discuss financial estimates. The general rule of thumb is to not promise something that you cannot deliver. If needed, make sure that you can provide incentives to your partner for the joint venture to commence, such as profit shares or a level of promotional activity.
Simple Joint Venture Secrets
Where To Find Joint Venture Partners
Potential partners are everywhere! Although that’s probably not too helpful, it’s true. They won’t have a label on them to tell you so – they’ll just be people and businesses in non-competitive businesses who share a very similar or the same customer base.
Try looking for partners and reaching out to them in:
- Social media
- Direct on partner websites
- Websites with referral contests
- Search engines (Google, Yahoo, Bing)
Grow Your Business Through Joint Venture Marketing
Joint venture marketing can be the business strategy you need to get your company off the ground or to take your business to the next level.
Like any marketing strategy, it has it’s risks but also has some very attractive benefits.
If you prepare your joint venture strategy well and think through the processes involved, then it can be a catalyst to business growth and sustainability.
Have you considered joint venture marketing before?
What do you think are the main benefits and concerns in joint venture marketing?