| From time to time I get confronted by one of my | | | | product. |
| students wanting to know about what percentage of | | | | So let's just say you have a really, really good |
| the sale of a product I would recommend as a split | | | | product that's a high end product and you're not |
| with JV partners, especially when you know you | | | | willing to give away as much on the front end. That |
| have a good product? This is what is known in the | | | | is, maybe you're just not interested in the 50/50 split. |
| industry as a JV split. | | | | What can you do? |
| Usually, what most partners expect on a JV split is | | | | Well, what you might want to think about is creating |
| 50% of the sale price. Now this may sound like a lot | | | | a feeder product. I don't even know if that's the real |
| for you to give up on a product you created | | | | name for it, but it's what I call it. Basically, a feeder |
| yourself and more so if it is your very first product, | | | | product is a lower end product that you have JV |
| but that's typically what they're going to look for. | | | | partners sell for you. Then what you do is have the |
| Some people may decide to give up more than half | | | | up-sell be your other product. By doing it this way |
| the sale price and if this is you, the more you can | | | | you can get away with a lower split on the back end |
| give, the more joint venture partners you're going to | | | | and give away more, percentage wise, on the front |
| probably take on. Always remember that. The other | | | | end to give your JV partners an incentive to work |
| thing is, just because you have a good product on | | | | with you. |
| the front end, you also have to think about looking | | | | Building strong relationships as well as making it |
| at how you're going to make more money off of | | | | worthwhile for your jv partners is the key to making |
| them on the back end. That's why you want to give | | | | a good number of sales and building stronger |
| away as much money as you can on the front end, | | | | relationships that will in time continue to grow your |
| so you can get a lot of people to buy your particular | | | | business. |