| Usually, a win-win scenario is created in trying to | | | | Calculate the Total Cost of Delivery |
| negotiate a joint venture. You need to be open to | | | | The number one thing you need to calculate is the |
| other possibilities however. The other party may | | | | cost of your product against the total cost of |
| want what you are offering but in a different | | | | delivery. It will vary depending on the service or |
| quantity format or size. Maybe they prefer just one | | | | product you sell. Include the discounts, special offers |
| of the features of the product you are offering. In | | | | and other special pricing styles in the total cost of |
| other words, You are not really sure what it is they | | | | delivery. |
| want, or how much of it. | | | | Calculate the Rate of Burns into Your Negotiations |
| The very first thing you need to do before going to | | | | You need to consider the burn rate of the other |
| see prospective joint venture affiliates is how much | | | | entity. This term evolved from the industry which |
| you can afford a joint venture partner. Remember | | | | means the rate a dot-com corporation burned |
| that you can pay them in two ways: | | | | through their money for venture capital. |
| • As a percent of the gross sales which is a | | | | In other words, it is the rate people will stop doing |
| prevent of the net proceeds. | | | | business with a venture partner because they got |
| • Under another financial arrangement. | | | | another promo from a partner advertising someone |
| A lot of business minded persons often wonder how | | | | else's services and goods. |
| much should be paid to a joint venture partner in a | | | | You need to consider the other entity's burn rate |
| deal? You can determine these by a number of | | | | which is the number of customers they lose by |
| different factors. | | | | endorsing your services. |