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8 Tips For Setting Up A Joint Venture

Many people are apprehensive about approaching other businesses to suggest a joint venture. They are concerned that they might be asking too much, or that they might offend someone. You can't think like this! Remember that joint ventures are win-win deals that give all parties involved an opportunity profit!

Simply follow these easy steps, and setting up your own joint ventures will be a breeze...

1. Contact potential joint venture partners personally.

This is one situation where an e-mail just isn't going to do the trick. A personal phone call or meeting will be more effective. You'll be taken much more seriously, and you'll be able to answer their questions right on the spot. Plus, it's much more difficult to say "No" to someone you're speaking directly with than it is to reply "No" to an e-mail.

2. Explain to potential partners exactly how they will profit from this relationship.

Here's another situation where focusing on how your proposal will benefit the prospect is going to be what closes the deal. If the potential partner can't see how doing business with you is going to increase their sales and profits, why would they bother? And remember, when negotiating a joint venture, it is important to educate the potential partner on the value of backend and residual sales, so you can claim a larger percentage of the profits.

3. If appropriate, offer them a sample of your product.

Once potential joint venture partners have experienced your product or service, it will be much easier to sell them on why they should promote it to their customers and subscribers. It will be easier to explain to them why their customers and subscribers will view them as a valuable resource, and how they will not only enhance their image, but also increase their profits by getting a cut of the additional sales.

4. Offer them a special discount to give to their customers.

It's good idea to emphasize that while your product or service is already excellent value, you know that your partner will want to give his/her customers and subscribers a "special deal." So tell them that you're willing to make your product or service available to their customers and subscribers at a special discounted price.


That way, the partner can approach their market as a "hero" who fought to get them this extra special deal. This will work in both of your favor to increase sales and profits.

5. Take away all of the risk.

This is really important. While you're emphasizing how your partner will benefit from the deal, you should be removing all of the risk... explaining that they have absolutely nothing to lose. Tell them that the worst thing that will happen is that they will experience an increase in their sales and profits!

6. Make it financially appealing.

Don't be stingy. While it's important that you claim as much of the profits for yourself as you can, if the deal isn't financially appealing to potential partners, it's going to be nearly impossible to get them to sign on the dotted line.

7. Make it extremely easy for them to do.

Be prepared to do the majority of the work yourself, if not all of it. The more work you do, the easier you make it for them. And the easier you make it for them, the easier it will be to close the deal. Best of all, though, by emphasizing how you're going to do almost all of the work yourself, you make it much easier to claim a larger percentage of the profits. They'll be more likely to accept a small share because you've made it so easy for them anyway.

8. Get a signed contract that includes the commission terms and everything that you have agreed on.

Before you start to reveal the really critical money making details, be sure that you have everything signed and in writing. Don't share your most valuable tidbits until you've done this, or your potential partner may just steal your ideas and use them him or herself to claim 100% of the profits.

I hope this tips can help you setting up your own joint venture.

Copyright 2005 Syahriansyah


About the Author: Syahriansyah is the owner of http://www.advancetactics.com. His website offers an idea for home based businesses. Feel free to check all the guides and articles.

Source: www.isnare.com

 

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