8 Tips for Setting Up a Joint Venture

Many people are apprehensive about approachingyour partner will want to give his/her customers and
other businesses to suggest a joint venture. Theysubscribers a "special deal." So tell them that you're
are concerned that they might be asking too much,willing to make your product or service available to
or that they might offend someone. You can't thinktheir customers and subscribers at a special
like this! Remember that joint ventures are win-windiscounted price. That way, the partner can approach
deals that give all parties involved an opportunitytheir market as a "hero" who fought to get them this
profit!extra special deal. This will work in both of your favor
Simply follow these easy steps, and setting up yourto increase sales and profits.
own joint ventures will be a breeze...5. Take away all of the risk.
1. Contact potential joint venture partners personally.This is really important. While you're emphasizing how
This is one situation where an e-mail just isn't goingyour partner will benefit from the deal, you should be
to do the trick. A personal phone call or meeting willremoving all of the risk... explaining that they have
be more effective. You'll be taken much moreabsolutely nothing to lose. Tell them that the worst
seriously, and you'll be able to answer their questionsthing that will happen is that they will experience an
right on the spot. Plus, it's much more difficult to sayincrease in their sales and profits!
"No" to someone you're speaking directly with than it6. Make it financially appealing.
is to reply "No" to an e-mail.Don't be stingy. While it's important that you claim as
2. Explain to potential partners exactly how they willmuch of the profits for yourself as you can, if the
profit from this relationship.deal isn't financially appealing to potential partners, it's
Here's another situation where focusing on how yourgoing to be nearly impossible to get them to sign on
proposal will benefit the prospect is going to be whatthe dotted line.
closes the deal. If the potential partner can't see how7. Make it extremely easy for them to do.
doing business with you is going to increase theirBe prepared to do the majority of the work
sales and profits, why would they bother? Andyourself, if not all of it. The more work you do, the
remember, when negotiating a joint venture, it iseasier you make it for them. And the easier you
important to educate the potential partner on themake it for them, the easier it will be to close the
value of backend and residual sales, so you can claimdeal. Best of all, though, by emphasizing how you're
a larger percentage of the profits.going to do almost all of the work yourself, you
3. If appropriate, offer them a sample of yourmake it much easier to claim a larger percentage of
product.the profits. They'll be more likely to accept a small
Once potential joint venture partners haveshare because you've made it so easy for them
experienced your product or service, it will be muchanyway.
easier to sell them on why they should promote it to8. Get a signed contract that includes the commission
their customers and subscribers. It will be easier toterms and everything that you have agreed on.
explain to them why their customers and subscribersBefore you start to reveal the really critical money
will view them as a valuable resource, and how theymaking details, be sure that you have everything
will not only enhance their image, but also increasesigned and in writing. Don't share your most valuable
their profits by getting a cut of the additional sales.tidbits until you've done this, or your potential partner
4. Offer them a special discount to give to theirmay just steal your ideas and use them him or
customers.herself to claim 100% of the profits.
It's good idea to emphasize that while your productI hope this tips can help you setting up your own
or service is already excellent value, you know thatjoint venture.