If you’ve begun researching the world of JV marketing, you may find that joint ventures and affiliate marketing are used almost interchangeably in the marketing industry. However, there are significant differences between a true JV partnership and an affiliate marketing structure. This article will go through a few of those basic differences to help you determine which marketing approach is the best choice for your business.
What is Joint Venture Marketing?
A JV marketing partnership involves two or more businesses coming together with the intent of promoting one another’s goods or services to build a bigger profit and a healthier bottom line. In some cases, the businesses may be equally matched in terms of size and business volume. Other times, a smaller business may connect with a larger one in hopes of attracting new customers through the larger base of the partner. The businesses are typically related but non-competing, ensuring that both businesses find equal benefit from the arrangement.
What is Affiliate Marketing?
Affiliate marketing involves an established product or service, which affiliates sign on to help sell for a portion of the profit. The affiliate may pay a small fee up front to begin working with the company, and then provides the financing for marketing efforts like a website, mailings or door-to-door flyers. The company offers support in terms of credit card services, shipping and customer service. The affiliate also enjoys the benefit of marketing an established product with a familiarity that makes it much easier to sell.
Similarities
Both affiliate and JV marketing involve parties outside the original corporate structure to build profits. In the case of joint venture marketing, those parties are businesses offering related goods and services that can help grow a responsive customer base through their own collection of loyal customers. In the case of affiliate marketing, the outside influences are typically individuals interested in selling the product or service already established by the company with the purpose of earning a portion of the sales.
Differences
Despite their similarities, JV and affiliate marketing are also vastly different in a variety of ways. Affiliate marketing already has a product or service to offer, and the company has probably been at least somewhat established to customers within an industry.
In JV marketing, a newcomer to a specific industry might cash in by relating his product or service to another business that has already been established. In this situation, there is more than one company and therefore more than one product or service involved with the arrangement.
If you do not currently have a product or service to sell, but want to enter the world of sales to make a living through commissions or a portion of the sales, affiliate marketing may be the best choice for you.
However, business owners who already have a product or service on the market and simply want to build their customer base with the help of a larger, more established company, JV marketing is probably the smartest choice. Either approach can build a customer base and a healthy bottom line for the company, or companies, involved in the agreement.
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.
To discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.
JV marketing is an excellent way to boost your business by cashing in on the expertise and customer loyalty of a more established business. However, getting started on a joint venture marketing campaign is intimidating if you’ve never ventured into one before. This article will take you through the steps of transforming your JV marketing concept to a successful business-building strategy.
Make a Plan
Every successful business begins with a plan, and yours should be no exception. With your product or service in mind, conduct some basic research to find out what types of customers will be interested in your goods and the marketing strategies typically employed to get those customers to make a purchase. With this information in hand, it will be much easier to select prospective JV partners that will appeal to a similar customer base.
Choose a Format
The next step is to find a joint venture marketing format that will fit your business style and budget. For example, do you want a partner to share your profits in return for a larger customer base? If so, look for prospects that are bigger and more established. Will your primary goal be to refer customers between your businesses? In this case, your partner may be similar in size to your own company to ensure a fair exchange takes place.
Look at the Bottom Line
Your budget will also determine the type of JV partnership that will work the best for you. Companies with smaller budgets may be more inclined to offer a share of their future profits, while those with more money to spend might look at a different type of marketing campaign to reach new customers. When you set your budget from the beginning, you will be less likely to exceed it during the process.
Take Action
Once your pertinent information is gathered, you can use it to implement a plan of action for finding and enticing new JV partners. This may be done by phone, email or in person, depending on your marketing style and the type of companies in which you are interested. Keep one eye on your original plan during this process so you don’t stray from your initial purpose and goals for your JV marketing strategy.
Test it Out
Upon finding a prospective JV partner, test the waters with a short-term campaign that allows you to accurately measure the results. This way you can try out a partnership with minimum cost and time before investing in a full-fledged business arrangement over the long haul.
When your plan is complete, you should have at least one or two effective JV partners in tow to help you build your customer base and your bottom line. When you take the time to walk through all the steps of forming effective partnerships, your efforts are more likely to be met with success. A positive JV partnership will result in additional hits on your website, an increase in your customer base and a better profit margin overall.
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.
To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.
If you have ever tried to win over a JV marketing partner, you know this process is easier said than done. Many business owners get discouraged when companies turn down their offer for a joint venture partnership. The good news is that “no” doesn’t have to mean “no” in all cases. This article will provide tips from turning an initial “no” from a prospect into a “yes” and a profitable partnership for both businesses.
Stand Out from the Crowd
The first step in getting a “yes” is to get noticed right from your first contact with the company. However, standing out from the crowd is not easy if you’re pursuing a large established business that gets many JV offers every month.
A good first step is to approach the company with something you can do for them, whether it’s to write a blog, design a web page or complete another task the business would find helpful. In a business atmosphere consumed with “me-ism,” asking what you can do to help is a good way to get noticed.
Build a Relationship
By working with a company in the manner listed above, you are also embarking on a relationship with that business. Since one good deed usually deserves another, a business that has received your favor is more likely to look favorably on you. Building a relationship with others in your industry allows you to effectively network within your niche to find assistance with your needs. This includes forming JV partnerships with bigger, more established companies that are acquainted with you and your business.
Be Prepared to Give
When you are a new business, few companies will give you the time of day unless you promise a lot in return. It may appear that you are giving away the farm just to get your name on a well established website, but the initial outlay of energy and profits will be worth the long-term results. Once you’ve effectively built up your customer base, you can back off on your JV partnership, enjoying a larger amount of business thanks to the new customers your partner helped you attract.
Follow Up
Follow-up is often an art that gets lost in the busy business world we work in today. However, persistence is still the one virtue most likely to pay off when you are trying to work out a JV deal with another company. While you don’t want to pester another business owner to distraction, a few well-placed phone calls or emails can go a long way in keeping your name at the forefront of CEO’s mind.
Upsell when Necessary
If you feel you are getting close to nailing down a particularly attractive JV prospect, don’t be afraid to upsell a bit if you think a little extra push will close the deal once and for all. This means keeping a small arsenal of enticements beyond your initial offer so you are prepared to give a little extra when warranted.
JV partnerships aren’t always easy to land, but they are far from impossible. Even the initial “no” can become a “yes” with some effective coaxing. With these tips in hand, you will be ready to approach any joint venture prospect with professionalism and confidence.
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.
To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.
