Making Money With Joint Ventures
Friday, March 30th, 2007 at 3:58 pm by Matt Van Atta
Joint ventures are business partnerships between two or more parties, usually limited to a single project. Such ventures enable the parties involved to make more money on the project than they could if they pursued that project alone.
Larger-scale ventures of this sort have at times led to mergers among corporations. But you’re just trying to run an affiliate marketing business; not be Donald Trump (at least not yet).
How can joint ventures work for you? Here are two examples:
Got Pancake Batter But No Stove?
Say you’ve found a product within your particular niche that you believe will sell like hotcakes. You’ve joined the merchant’s affiliate program, and you’ve prepared the marketing content to sell the product. Simply add a decent opt-in list and/or a high-traffic website, and turn the crank, right?
Well, what if you haven’t yet built up that opt-in list? Or, what if you just launched your website and haven’t yet attracted significant traffic? Both of these require that you take time to build trust in your target audience through your content, so that they will want more content from you. Without that well-developed target audience, those hotcakes will chill on the griddle.
Another affiliate, whose niche is related to yours, has the opt-in list or high-traffic website that you need. Hence, the joint venture: You give that person a percentage of your commission from product sales in exchange for marketing the product through his/her resources. Plus, a product recommendation from that affiliate can be very effective in selling the product to the affiliate’s target audience.
Well Run Dry?
A joint venture can also help resuscitate a resource that has run dry. Say you have a sizable opt-in list. But the revenue stream from that list is more like an arroyo, dry and lifeless. You may also lack time to produce the newsletters and other revenue-generating content for that list.
A joint venture with an expert both in writing and in your niche can help. Your partner writes content to your opt-in list. In return, he/she receives a percentage of your product sale commissions that his/her content generates. That opt-in list that was lying dormant is now producing for you again.
These examples show how entering into a joint venture can make more money for you than you would as a “lone wolf.” My next post will focus on what you need to enter into and maintain a joint venture.
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