Many Internet Marketers either think Joint Ventures and Affiliate Marketing is the same thing or don’t really understand the difference between the two.
Joint ventures (also referred to as JVs) are partnerships made between two or more people. These partnerships are usually formed for the purposes of cross promotion of products. There are a number of kinds of JVs, and the offer you present to your JVs partners depends on what you actually have to offer, and what you would like in return.
The majority of JVs are simply affiliate relationships. You are selling a product and your JV partner has their own website, forum or email list. The JV partner will distribute emails to his mailing list detailing your product or advertise the product on his website, forum, blog, etc.
You then pay a fee to your JV partner each time a sale is generated. This kind of relationship should not really be referred to as a JV, but it is often referred to as such. This is possibly because the owner of the product is the one who approaches the JV partner asking for some marketing rather than the owner of the product simply deciding that he wants to be an affiliate.
The most popular type of genuine JV is when two parties with their own websites and mailing lists exchange advertisements. In most cases, both parties own mailing lists of similar size focusing on the same niche, and each party agrees to distribute emails to their list on the behalf of the other party. They send your advert to their list and you return the favour and send their message to your list.
Joint ventures are a fantastic concept.
They let you go way beyond what you would be able to achieve if you were simply marketing to your own list or advertising on your own site. If your list contains 10,000 people and 300 people purchase the product you are advertising, then your conversation rate is 3%.
If you were able to find another ten people who have lists of similar proportions and get them to send out your ad, and this also generates 3% conversion, you could be earning ten times the amount you would have made by just emailing your own list.
Keep in mind that many lists will contain duplicates of people interested in the same niche area. For example, in the niche of Internet marketing, webmasters will be included on lots of lists. With any major launch, you might receive ten or twenty messages regarding the same product within hours of each other.
Of course, no mailing lists will be exact duplicates of each other. There will be different audiences. JVs are a really good method of reaching out to a wider audience than you would otherwise be able to focus on if you were on your own.
If you are looking to JV with somebody, you need to prepare yourself before you contact them with your proposal. You need to offer them something that will be of value to them. A JV can be a bartering situation or a cross promotion. Each of you will offer a skill or service that will create and launch a product that is co-branded between you.
If you are going to write to an established marketer who owns a huge list you need to make it worth their while otherwise they won’t bother with you. You need to offer them something special. It might happen, but don’t expect it overnight. A JV partner can be drawn in with a very high offer of commission.
You might need to pay 70% or higher in order to get the interest of the JV partner unless you are already established yourself and have an extensive list of your own.
I personally offer 75% for my products to my JV’s.
An amazing and exciting product might also do the trick if you sell it right.
On the most part you will be in a JV with others who have a similar size list to you. Many people won’t be interested in a JV with you if they have a list that contains over 10,000 names and yours only contains 300.
Once you have built up an extensive list then you can start going for the bigger JVs. Don’t forget what it was like when you first started and your list was a lot smaller. Don’t automatically show disinterest in somebody just because their list is small at the moment.
If they have a good rate of commission on offer or a very good product, you might want to seriously consider their offer. Also, you can develop relationships that will be of great value in the future.
So start today.
Who could you approach to start your JV plan?
Contact 5 JV’s each day for the next week and see how many say ‘yes’.
It could easily triple your current income.