Joint Venture - The Why and the How of Creating a Profit Center

Joint venture is one of the most power marketing strategies ever discovered. And if you have not have any idea how to maximize it, you are missing a big opportunity in business.

So what is joint venture, what benefits is there for you and how to go about creating your own joint ventures?

Well, joint venture is simply an agreement in which two or more organizations or businesses work together for a set period of time. It could be short term, or long term and the objective is always the same, that is to create a win-win situation by promoting each other's businesses and make more money together.

For example, a classic example of joint ventures will be McDonald's. They ride on the films produced by Walt Disney and create merchandise based on the characters on the films and sold it as a package to the consumers. In this way, McDonald's is able to sell more burgers, and Walt Disney is able to sell more merchandise.

So, what are the benefits of a joint venture?

You can build long lasting business relationships

Creating a joint venture with other businesses give you the opportunity to build relationship with them. In the long run, when their business boom and they have good opportunity, the first person they will look for to partner will be those they trust.

Your credentials improved by teaming up with other reputable businesses

If you are able to work with businesses bigger than yours, you not only able to create a goldmine for yourself, but also gain credibility as an authority in your area.

You can construct most joint venture deals with little or no money

Most Joint Venture deals are constructed at very little cost. The most important thing is that its well thought out, benefit both parties and consumers. Despite its low cost, its proven to be a huge profitable business strategy.

You can gain new leads and customers

This is where the buck starts. With joint venture, you are actually tapping onto your business partners' customer base. Exposing your business to them and in return, turning them into your customers. In this way, you not only save on advertising costs but also reach out to people you otherwise won't be able to reach.

These are just some of the benefits of creating joint ventures. Next I will share with you the basic steps in creating a joint venture.

What do you want to achieve?

The first thing you need to do is to look around your business or products and ask yourself, "what do you want to achieve?" Do you want to open up the youth market? Do you want to find more customers? Or do you want to find out more about other area you might be able to go into? Know what you want to achieve is the most important part of creating a JV.

Who are your ideal partners?

Now, once you know what you want to achieve, ask yourself, "who are your idea partners? Why?" Are they already in the youth market? Are they reputable and could help you improve your credibility? Are they in an industry you like to be in?

What do you have to offer?

Now that you have identified your ideal partner, the next thing is to find out what do you have to offer? Create an appealing offer to both the partner and also to the customers your new partner will need to reach out to.

An appealing offer to your partner's customers will go a long way in the future so don't be stingy when creating offers.

Approach them

Finally, its time to approach them to create a joint venture. Realizing and constantly applying JV as part of your marketing strategies will open up a brand new profit center. A goldmine you otherwise might not be able to tap into.

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