Advantage of Joint Ventures
<b>The Thinking Behind Joint Venture</b>
Joint Ventures are an interesting concept that can have dramatic effects on your business, especially your online business. I first learned about joint ventures when I was in the mortgage business. Before I get into that, its important that you know what joint ventures are.
Joint venture partnerships are a mutually beneficial business arrangement where two or more parties come together to improve their businesses.
What does all that mean? Well, very simply put, we work together and I scratch your back, and you scratch mine. In the mortgage business, a common joint venture that I had were real estate agents. Think about it. They needed to sell homes, and I had buyers who are approved to buy homes. This led to constant referrals back and forth which was beneficial to each of our businesses.
When we think of an online business, joint ventures operate very similarly. In fact, I have discovered roughly 3 different ways that you can partner with someone to explode your business.
<b>What are some of the other benefits of a joint venture?</b>
A joint venture can offer introduction to new geographical markets and new distribution outlets.
An extreme and exceptional example of this is a little company called Microsoft. The head of this small company had some software called MS-DOS and no customers. He reached a deal with a company called IBM who made computers and was already a known and respected company in the computer industry. They also had a large number of customers. The deal was for every computer sold, it would have MS-DOS already installed with the agreement that this little company called Microsoft would give lifetime upgrades for its software. Well, the rest is history and it made the head of that small time company a billionaire by the time he was 31 years old.
Another benefit would be the mutual use of experts in other areas of expertise and or technology. By using the above example for this point, the computer company has a great writer and the software company's programmers are not good at explaining how this software works or what it can do. The computer company's writer can then be used for a tutorial on how to use the software along with the tutorial on how to operate the computer. This then will make using the computer and software much easier for the customer. This promotes brand loyalty for both the software company and the computer company.
Marketing expenses are shared. You now have more exposure but your marketing budget is the same as before. You are getting twice as much for the same cost.
You can now offer your customers new products or services and also increase your credibility by being partnered with an already reputable and branded company.
You gain from learning other valuable skills and knowledge.
The ability to find and target new markets is simplified.
These are just a few of the benefits, the list is endless. As you think about doing a joint venture you will come across many more and some may be unique to your business.
<b>So what do I do next?</b>
So just how do you go about setting up a joint venture? It would be possible to go through trade magazines, yellow pages or web site search for businesses that are in your targeted market. Research these businesses and then contact them with a proposal.
We suggest you first find out who has the necessary reputation and the credibility needed in your target market. This can very well be contacts that you already have. This is a faster way to start because someone you know and have a relationship with would be easier to speak with about a joint venture.
There are some other excellent places to find a willing joint venture partner.
Seminars or Workshops
People who are serious about expanding and growing their business will spend money to get information from this type of activity.
Business suppliers or other business contacts
If a mutual friend who is respected by both parties makes the introduction, part of the process is done. It is almost like an endorsement from a third party. It can go along way to building trust with your potential partner.
Join online discussion groups and forums
This approach has a double benefit. It will not only expose you to experts in your target market, but you have a chance to evaluate them to decide if there is someone you want to be associated with. It also will give you an idea of what the market's general opinion is of the potential partner's credibility and reputation.
You may also want to join a membership association. These associations will normally provide a member list that would give you the contact information, web site, if any, and also the business name. It may even send out regular newsletters or host monthly events that could lead to some meetings face to face with potential partners.
Visit http://www.Ask4Ben.com for more quick tips and tools on how to become a successful affiliate marketer online by Benne J. Clark.
You can also pick up three additional free bonuses
Article Source: ArticlesBase.com - Advantage of Joint Ventures