Business 101: Joint Venture Marketing
The most expensive marketing
consultant in the world, Jay Abraham, was quoted as saying
"the fastest, easiest way on earth to make a fortune...and if
I had to choose from one single way to make money, this is
it."
Joint Venture marketing made him
and the companies he works with millionaires...what can it do for
you?
To put it simply, joint ventures
are when one company who has developed a list of customers makes
an endorsement of another company's products or services to their
list sharing in the profits.
It is based on one business rule,
"People prefer to buy from someone they know and trust."
The most precious asset you have in your business is the
relationship you have built with your customers. It is an asset
that isn't measured in dollar signs, but that doesn't make it
worth one penny less. If you learn how to leverage your business,
this asset is worth pure gold.
Let's say for a moment that you
rent a list of names and addresses from a list broker. You
carefully plan your offer and prepare a killer sales letter. Your
campaign becomes a winner and pulls in a 1 to 3 percent response
on the offer. That is a very effective direct mail project, but
with those numbers, you may or may not make money.
In many cases, you don’t make
very much profit on the first sale to the customer. It is on the
backend sales later on down the road that you make your profits.
As a matter of fact, many of the Infomercials actually lose money
on every sale they make. They are willing to lose money on 10,000
customers a month so that they can make money on the backend.
Using endorsement offers though can
change those numbers completely. A joint venture can take place in
this instance by the owner of the list making a deal with the
product company to endorse the product to their list. All that the
list owner has to do is write about the product owner’s
greatness, his unmatched service, his high quality product, and
how valuable he considers this deal to be. It only needs to be one
page written by the owner of the list and inserted with the exact
same sales letter as the one we showed before.
Now, this same offer (only a one
page sheet of endorsement by the owner of the list) has been known
to sell 10 TIMES as many products with the same mailing to the
same list. That means it is possible for this offer which pulled
only a 1% - 3% response rate a moment to now pull a response rate
of 10% to 30%!!! WHY? The mailing list trusts the list owner
because they have done business with them in the past and are
willing to do it again based on their recommendation.
Let’s run the numbers for a
moment. If you were selling a $197 product to a list of 10,000
people by direct mail, and received a 1% response rate, you would
make 100 sales. That would be a gross income of $ 19,700. If your
mailing costs totaled $10,000 (which is quite possible) and your
expense of your order line plus product were another $5,000, you
would have made a profit of $4,700 before the cost of list rental.
In other words, your profits would have been decent, but nothing
to write home about.
Now, let’s take the same direct
mail campaign and make it a Joint Venture. The list owner endorses
your offer and you achieve a 10% response rate on the mailings.
You made 1,000 sales. That would be a gross income of $197,000.
The cost of mailing stays the same and the cost of your product
and order line is now $50,000. You have made a $147,000 profit.
You have to split this 50/50 with the list owner and you both make
out with $73,500.
Is this a better deal?
Both you and the list owner make
thousands more than you could have considered ever making without
this partnership. Plus, more customers get to take advantage of
your wonderful products (I am assuming they are wonderful or you
should go find new ones). It is a WIN-WIN situation for everyone
involved in the process.
Would you like to know how we could
have leveraged your sales even further and removed ALL RISK from
the process. If the list owner had a newsletter which they sent
out to their customers regularly, he could have included your
product offer as a ride-along and had NO additional postage costs
to include it. The entire offer would have had NO risk to you or
the list owner and the potential for over a hundred thousand
dollars in profits.
What does this have to do with your
business?
Everything...
If You Are a Product Owner:
There are thousands of web sites out there which have already
built relationships with their customers. They have Opt-In Email
Lists, discussion boards, or regular visitors to their sites. They
have the targeted consumers you need and are looking for in your
business. If you will LEVERAGE their customer asset and share the
profits of your product with them, you can build an online
business almost instantly.
If You Are a List Owner:
If you find the right product offer and send it out to the 10,000
subscribers of your newsletter along with the right Joint Venture
elements, you can instantly earn tens of thousands of dollars in
new found wealth for your business. This can occur while helping
your subscribers and without having to spend a minute on
developing a new product.
If You Don't Have A Product Or a
List: Even if you are
starting at ground zero, you can take advantage of Joint Venture
Marketing Principles. You can become a deal maker who finds the
product owners and list owners and sets up the opportunity. If you
were working on a profit split, you could easily earn 10% - 30% of
the profits on the deal!
How do you find these deals?
There are infinite numbers of ways
to find these deals and set them up, but I want to help you get
started and generate some ideas for you with these three
techniques:
1. Look for deals with Ezine
publishers. Many of them have 10,000 or more subscribers and send
out emails to their lists every single week (some daily). Over
3,000 of them organized by industry and market can be found at http://www.dominis.com/Zines/.
2. Start participating in
discussion groups. You can actually network your way to wealth by
participating in the networking method of the next century. The
most extensive list of these groups can be found at http://www.forumone.com
3. Do a search on one of the search
engines such as http://www.yahoo.com
Finding dozens of potential partners in any business will be snap
using the online tools we have available to us.
How to contact them:
Once you find your potential
partners, prepare a letter and send it by courier to the decision
making person in the company. Tell them that you have a way to
leverage the assets in their business for immediate profits. There
is no cost to them whatsoever. Then, call them. Introduce yourself
and start interviewing them. Ask about their company, their sales,
their business, etc.
Share the information you have
learned here with them and get the deal going for maximum profits
for both of you.
Go
to the Next Section: A Personal Letter From Terry Dean
Back to 101 High Profit Businesses Table of Contents
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