Endorsements are one of the most powerful tools in joint venture marketing today, thanks to the proven psychology that stands behind them. Endorsements are essential if you want to build consumer confidence quickly and cheaply, and joint ventures are tailor-made for such a task.
Consider the psychology behind endorsements, and you will see why they should be an integral part of every JV you undertake.
Celebrity Endorsements
If Michael Jordan wears a certain brand of underwear or Michael Phelps eats a particular breakfast food, it stands to reason that the product in question will help us be more athletic, successful or attractive as well, right?
Actually, the connection is purely psychological, but the lack of practicality does not deter the public from purchasing the same items celebrities endorse in their overpaid camera spots. Celebrity endorsements are one of the oldest advertising tools available, and they have paved the way for other types of endorsements to be used effectively as well.
Customer Testimonials
When we consider working with a new business, there is a degree of trepidation with the venture. How do we know this company will provide the quality and service we want and deserve?
One way to verify the value of a company is to talk to customers who have worked with the business in the past. After all, nobody knows how to walk in a customer’s shoes better than the customers who have gone before.
Companies have learned to take customer testimonials to the next level by including them in their advertising or on their websites. When we shop online, we see a plethora of happy customer testimonials, and it builds our own confidence in the company to whom we are about to give our hard-earned money.
Joint Venture Endorsements
Now let’s take the powerful draw of endorsements into the joint venture. Partnering up with a company that is bigger and more established, you gain more than a business to share the cost of your advertising. When this larger company, which boasts a long and loyal customer list, adds your business name to its website, your reputation is automatically enhanced. Customers who have received high quality goods and services from your partner will be more likely to shop with companies related to that business as well. You have just created a firm reputation with a targeted customer base, and you hardly had to lift a finger to get it!
While you stand to gain big with the endorsement from your partner, it is legitimate to ask what your JV partner receives in return. In most cases, joint ventures are formed in this manner to provide additional revenue to the larger company. You might offer a portion of your profits to your partner in exchange for their endorsement of your company. While this may seem like an unfair exchange at first, consider that a good reputation is worth its weight in gold for your company, literally in terms of the new customers it could generate. There is no greater opportunity to gain from joint ventures that the confidence building that comes from endorsements like these.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.
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