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The most expensive marketing consultant in the world, Jay Abraham, was quoted as saying "the fastest, easiest way on earth to make a fortune...and if I had to choose from one single way to make money, this is it." Joint Venture marketing made him and the companies he works with millionaires...what can it do for you? To put it simply, joint ventures are when one company who has developed a list of customers makes an endorsement of another company's products or services to their list sharing in the profits. It is based on one business rule, "People prefer to buy from someone they know and trust." The most precious asset you have in your business is the relationship you have built with your customers. It is an asset that isn't measured in dollar signs, but that doesn't make it worth one penny less. If you learn how to leverage your business, this asset is worth pure gold. Let's say for a moment that you rent a list of names and addresses from a list broker. You carefully plan your offer and prepare a killer sales letter. Your campaign becomes a winner and pulls in a 1 to 3 percent response on the offer. That is a very effective direct mail project, but with those numbers, you may or may not make money. In many cases, you don’t make very much profit on the first sale to the customer. It is on the backend sales later on down the road that you make your profits. As a matter of fact, many of the Infomercials actually lose money on every sale they make. They are willing to lose money on 10,000 customers a month so that they can make money on the backend. Using endorsement offers though can change those numbers completely. A joint venture can take place in this instance by the owner of the list making a deal with the product company to endorse the product to their list. All that the list owner has to do is write about the product owner’s greatness, his unmatched service, his high quality product, and how valuable he considers this deal to be. It only needs to be one page written by the owner of the list and inserted with the exact same sales letter as the one we showed before. Now, this same offer (only a one page sheet of endorsement by the owner of the list) has been known to sell 10 TIMES as many products with the same mailing to the same list. That means it is possible for this offer which pulled only a 1% - 3% response rate a moment to now pull a response rate of 10% to 30%!!! WHY? The mailing list trusts the list owner because they have done business with them in the past and are willing to do it again based on their recommendation. Let’s run the numbers for a moment. If you were selling a $197 product to a list of 10,000 people by direct mail, and received a 1% response rate, you would make 100 sales. That would be a gross income of $ 19,700. If your mailing costs totaled $10,000 (which is quite possible) and your expense of your order line plus product were another $5,000, you would have made a profit of $4,700 before the cost of list rental. In other words, your profits would have been decent, but nothing to write home about. Now, let’s take the same direct mail campaign and make it a Joint Venture. The list owner endorses your offer and you achieve a 10% response rate on the mailings. You made 1,000 sales. That would be a gross income of $197,000. The cost of mailing stays the same and the cost of your product and order line is now $50,000. You have made a $147,000 profit. You have to split this 50/50 with the list owner and you both make out with $73,500. Is this a better deal? Both you and the list owner make thousands more than you could have considered ever making without this partnership. Plus, more customers get to take advantage of your wonderful products (I am assuming they are wonderful or you should go find new ones). It is a WIN-WIN situation for everyone involved in the process. Would you like to know how we could have leveraged your sales even further and removed ALL RISK from the process. If the list owner had a newsletter which they sent out to their customers regularly, he could have included your product offer as a ride-along and had NO additional postage costs to include it. The entire offer would have had NO risk to you or the list owner and the potential for over a hundred thousand dollars in profits. What does this have to do with your business? Everything... If You Are a Product Owner: There are thousands of web sites out there which have already built relationships with their customers. They have Opt-In Email Lists, discussion boards, or regular visitors to their sites. They have the targeted consumers you need and are looking for in your business. If you will LEVERAGE their customer asset and share the profits of your product with them, you can build an online business almost instantly. If You Are a List Owner: If you find the right product offer and send it out to the 10,000 subscribers of your newsletter along with the right Joint Venture elements, you can instantly earn tens of thousands of dollars in new found wealth for your business. This can occur while helping your subscribers and without having to spend a minute on developing a new product. If You Don't Have A Product Or a List: Even if you are starting at ground zero, you can take advantage of Joint Venture Marketing Principles. You can become a deal maker who finds the product owners and list owners and sets up the opportunity. If you were working on a profit split, you could easily earn 10% - 30% of the profits on the deal! How do you find these deals? There are infinite numbers of ways to find these deals and set them up, but I want to help you get started and generate some ideas for you with these three techniques: 1. Look for deals with Ezine publishers. Many of them have 10,000 or more subscribers and send out emails to their lists every single week (some daily). Over 3,000 of them organized by industry and market can be found at http://www.dominis.com/Zines/. 2. Start participating in discussion groups. You can actually network your way to wealth by participating in the networking method of the next century. The most extensive list of these groups can be found at http://www.forumone.com 3. Do a search on one of the search engines such as http://www.yahoo.com Finding dozens of potential partners in any business will be snap using the online tools we have available to us. How to contact them: Once you find your potential partners, prepare a letter and send it by courier to the decision making person in the company. Tell them that you have a way to leverage the assets in their business for immediate profits. There is no cost to them whatsoever. Then, call them. Introduce yourself and start interviewing them. Ask about their company, their sales, their business, etc. Share the information you have
learned here with them and get the deal going for maximum profits
for both of you.
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