Joint Ventures: No Product? No Problem.Joint ventures, or JVs, are becoming increasingly popular in business today. They have shown an effective way to increase company size and profits -- even for businesses that have no product to sell. A JV is the entity created when two businesses, individuals, companies or other legal entities enter into an agreement. The joint venture benefits both parties by combining skills, customer bases, capital or other products or services. The concept behind a joint venture is obvious if you have a product to sell. You would simply want to find a partner who could help you increase sales. Maybe you would look for someone with an established set of regular customers who could sell to them for a portion of the profit. You might also find someone who sells a product that offsets your own to sell together in a package. In this scenario, it's clear that both sides benefit from the partnership. But what if you don't have a product to sell? That might make it a little tougher to see how a JV could benefit you -- or how joining with you could benefit a potential partner. If you aren't selling a product, you're probably selling a service or skill. If this is true, you are called a "dealmaker." As a dealmaker, you must first find a business partner with a product that compliments your skills. For example, if you are a savvy marketing expert who knows how to manipulate the Internet, you would do well to find a company with a good product for sale online but a lackluster marketing campaign. Do multiple Web searches for great product ideas with boring websites and imagine ways you could help them improve. Once you determine how you can benefit a potential partner, it's time to think about what you will ask for in return. When you think of a deal that sounds fair to you, write out a proposal to present to the company. If they accept, then it's time to begin the process of creating a joint venture, including writing a business plan, a binding legal contract and an exit strategy. Another way to enter into a joint venture when you don't sell products is to partner with someone who wants to sell their products through your business. Stocking the shelves of a conventional store is costly and difficult, but when you are part of a joint venture, your partner provides all that for you. Joint venture marketing, or JVM, is a new trend that has become popular with the growth of the Internet. JVM partners obtain free e-products, like e-books and e-zines, that they then sell on their websites. There are plenty of these free products available online. Many of them are labeled as Private Label Rights or Master Resell Rights products, meaning they are already packaged and ready to sell. All you have to do is add your contact information and it's ready to go. The benefit to you in this situation is obvious: You receive products to offer on your site and the provider of those products benefits from the free advertising he gets on your site. You might also be obliged to offer the provider with a portion of your profits. The Internet has created a whole new universe of joint venture opportunities for those seeking them. JV collaborative groups comprise Internet marketers who work together to promote each other. When they all advertise together and promote each other, they each reach exponentially more customers than they can on their own. If you become a member of one of these collaboratives, visitors might be required to sign up for the newsletter or e-book you offer, helping to create a large list of subscribers. Within these products you send your visitors, you can include your ads and those of your JV partners as well. Whether you have products to sell or not, you can pad your bottom line and increase your customer base by leaps and bounds by entering into a joint venture. As always, the most important thing is to understand the legal ramifications before entering into any business deal. If you do your research and enter into a JV armed with knowledge, your business may never be the same. |
