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Five Most Common Mistaken Beliefs About Joint Venture Marketing

Apart from being the fastest, easiest, and most profitable strategy for attracting clients and boosting profits in any small business, there are so many other advantages of joint venture marketing for all parties involved. So, why aren’t all small business owners implementing joint ventures?

Here’s a partial list of the most common mistaken beliefs about joint venture marketing. I’ve picked the top five to shorten your reading time, but you can listen to more mistaken beliefs when you tune in to hear me being interviewed by Doug Hudiburg at http://tinyurl.com/cov4d.

Mistaken Belief #1: That There’s A High Risk Of Losing Money.

If you’re like most small business owners, then the fear of losing money is inevitable because you’re probably on a shoestring budget to start with. However, you can’t lose money when you’re paying for results only. You only pay out a commission when your joint venture partners’ clients buy from you. So, you actually get the revenue before incurring the expense.

The only other pre-sale expenses are production costs and printing/postage costs for letters, coupons or vouchers. Whether you do joint ventures or not, these are costs you’ll incur anyway, because you’ll need those coupons or vouchers for other marketing tactics. So, the belief that there’s a high risk of losing money is misplaced.

Mistaken Belief #2: That You’ll Lose Your Clients.

Your clients will purchase other products and services whether you like it or not. So, it would do your business good to recommend what they purchase and make a profit from it.

In fact, recommending high-quality products and services to your clients will strengthen your relationship with them. How? Firstly, you’re shortening their decision-making process by saving them the time they’ll otherwise spend on finding and trying out those products and services. Secondly, by arranging exclusive discounts and bonuses, you’re saving them money. By saving them time and money, you’re adding value to what you already offer your clients, and this will therefore strengthen your client relationships.

Mistaken Belief #3: That Doing Joint Ventures Will Eat Your Profits

Most small business owners would rather struggle to get clients, and get mediocre profits at best, instead of sharing the profits with a joint venture partner that sends clients their way.

They don’t realize that joint venturing actually eliminates the risk of wasting money. For example, when you pay for an advert, you have no clue whether it will generate responses or not. So, you’ll lose money if the ad fails.

With a joint venture, you only pay for results. So, giving


a percentage of your profits away has got to be better than flushing the money down the drain… because that’s what happens when you spend $300 on an ad that doesn’t generate responses.

Mistaken Belief #4: That Joint Ventures Are Complicated

Of course there are complicated joint ventures, but there are so many simple and short-term joint ventures that a beginner can start with.

It only starts getting complicated when you’re looking at joint ventures like the one between Merrill Lynch and HSBC a few years ago. The two banks combined logos and actually had a service called Merrill Lynch HSBC, which had a building on Regents Street in London. That might have been profitable for Merrill Lynch and HSBC, but you don’t have to do that if you don’t have the tools or resources.

Any small business owner can do joint ventures that are a lot simpler. For example, you could host a seminar with your partner and both promote it to your client lists. You’ll both walk away with more clients and huge profits.

Mistaken Belief #5: That Joint Ventures Require A Lot Of Time And Effort.

Of course time and effort go into the preparation. However, joint venture marketing is one of the very few strategies that don’t take much effort or time to implement.

If you’re joint venturing with people that are in your network or people that can be introduced to you by someone in your network, then the relationship-building process is shortened. This is because you and your joint venture partner already know, like and trust each other, or you have a mutual friend that introduced you to each other. For this reason, it can take as little as thirty days to execute your first joint venture.

On the other hand, if you’re approaching a joint venture partner that is a cold contact, the time you’re looking at is the relationship-building time. If you have great networking skills then you should be on your way in a few weeks or a few short months. It simply boils down to evaluating each other’s character and business.

Copyright © 2005 by Habiba Abubakar and Emprez. All rights reserved.

Note: You are welcome to republish this article as long as the resource box at the end is included fully and unaltered.

About the Author

Joint venture specialist Habiba Abubakar, a.k.a. The Profit Diva, specializes in helping small business owners who are struggling to increase their client base and are tired of earning mediocre profits. To sign up for your FREE copy of her revealing Mini eCourse, “The Easiest Way To Skyrocket Your Profits In 90 Days Or Less,” and to receive other FREE marketing resources, visit http://www.profitdiva.com

 

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Learn about marketing careers, the stages of developing a marketing plan, how to begin marketing research, create a marketing strategy, and how to market ...
marketing.about.com
 
Marketing.org - Home of the Business Marketing Association
Serves the professional, educational and career development needs of business-to-business marketers.
www.marketing.org
 
Welcome - American Marketing Association - www.marketingpower.com
Dedicated to serving the educational and professional needs of marketing executives.
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Advertising, Marketing, Media and PR News - Brand Republic
Find the latest Advertising, Marketing, Media and PR news from Brand Republic, the online resource for up to the minute advertising and marketing news and ...
www.brandrepublic.com
 
Marketing Magazine - Marketing News - Brand Republic
Marketing Magazine - Marketing News - Brand Republic.
www.brandrepublic.com
 
Marketing (Canada)
Offers a Canadian source of news and articles on marketing, advertising and media.
www.marketingmag.ca
 
BidVertiser - Pay Per Click Advertising On Sites Of Your Choice.
Pay per click advertising - online advertising directly on sites of your choice, internet marketing solution for online advertisers.
www.bidvertiser.com
 
Online Behavioral Contextual Advertising and Marketing.
Promote your business with today's most effective online advertising technology, contextual advertising at a cost effective metric of CPC, PPC, CPM or CPV.
www.clicksor.com
 
Sales Jobs / Marketing Jobs / Advertising Jobs - MarketingJobs.com
Employment site for marketing and sales professionals.
www.marketingjobs.com
 
The Chartered Institute of Marketing
The Chartered Institute of Marketing is the world's largest international marketing professional body and helps with career support and information ...
www.cim.co.uk
 
Marketing: See what people are saying right now on Technorati
See all blog posts tagged with marketing on Technorati.
www.technorati.com
 
Marketing Profs - Marketing Concepts and Strategies: Expert ...
Marketing knowhow from professionals. Newsletter, articles and how-to's.
www.marketingprofs.com
 
Guerrilla Marketing Online - The Official Site
Guerrilla Marketing Online is anonline magazine for small business, entrepreneurs, sales people and marketers of all kinds.
www.gmarketing.com
 
Business Marketing - Small Business Marketing
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www.entrepreneur.com
 
All About Marketing
Adapted from Field Guide to Nonprofit Program Design, Marketing and Evaluation ... Inbound Marketing Includes Market Research to Find Out: ...
www.managementhelp.org
 
Pages tagged with "marketing" on del.icio.us
USA Network Announces a NASHVILLE STAR Marketing Partnership With ... - Yahoo! ... Direct Marketing Association: Telephone, Mail & Internet Marketing ...
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ClickZ Internet Marketing Solutions for Marketers
Includes columns with commentary and analysis on a wide variety of internet marketing subjects ranging from B2B marketing to search engine marketing.
www.clickz.com
 
Direct Marketing Association: Telephone, Mail & Internet Marketing
Trade association for users and suppliers in the direct, database and interactive marketing fields, offering seminars and resources, and lobbying for ...
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