PR LEADS’ Official Guide to Building Your Business with Joint Ventures
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Habiba Abubakar: Well joint venture marketing has a lot of benefits and I will quickly go through some of them. First of all, you pay for results only. Now when you place an ad or you rent names for a direct mail campaign, you still make a payment to the publication or the list broker whether you generate responses or not. With joint ventures you only give your joint venture partner a cut of the profits based on the sales made as a result of the joint venture. So if no sale is made, your joint venture partner gets nothing and that just eliminates potential losses. Now another benefit, which is one of my favorites, is that you will increase credibility. Your joint venture partner probably spent years building a good reputation within their industry. So they therefore have influence and credibility with their clients.
Now when you partner with them, you will be tapping into this resource and you will be piggybacking on your joint partner’s credibility by shining in their glow. Another benefit would be that you will be adding value and getting more profits at the same time. By endorsing products and services of great quality, you are creating new profit outlets for your business. And you’re also offering your clients a larger variety of products and services and this means, of course, that you are adding value to what you already offer to them and you’ll be increasing your profit at the same time. Oh there are so many benefits Dan… and another that comes to mind is that you’ll increase visibility. And here I’m referring to the fact that you will be exposed to new markets that you may not have been able to reach on your own. Now of course, I strongly believe in dominating a niche market, but I also believe that you shouldn’t throw business away when it comes from other industries or sectors that can benefit from what you have to offer, even though you may not necessarily target that market to begin with. And by doing joint ventures you easily get introduced to other potential markets, and this will in turn increase your visibility in the market place.
You will also build long lasting business relationships, you’ll strengthen relationships with your clients and you’ll increase your network of business associates. This is great for future joint ventures, for getting testimonials and for other marketing opportunities. You’ll also save time, and you’ll save money. Joint venture marketing is very low cost and even sometimes a no cost strategy, so this enables you to protect your cash flow. You’ll save time on production, and you save money on operational cost by offering your clients new products and services from your joint venture partner, that you didn’t need to create yourself. And you’ll be slashing your marketing cost by sharing these costs with your joint venture partner. These are just some of the many benefits of joint venture, which is great.
