Many, many internet marketers have made fortunes from joint ventures (I’ll call them JV’s from now on). And they continue to do so today. You name any top internet marketer in the UK or abroad and they use JV’s to increase the sales of their products and to earn commission from other people’s products.
But the great news is you don’t have to be an internet giant to profit from JV’s.
In fact JV’s are a fantastic way for the newbie to get a foothold in a new market and I’ll explain why later.
During this article I will discuss you joint venturing your product with a list owner.
If you don’t have a product don’t worry I will show you how you can profit from JV’s even without a list or a product in a future article.
What Is A Joint Venture?
Joint Venture is probably a concept you have heard many times before in business. Large corporations often use joint venture’s to break in to new markets. The two businesses usually have different strengths and they JV to capatilise on each other’s strengths.
Joint venturing online follows the same concept except for one important fact.
They are quick and easy to put together in the online community. And you don’t have to be Rockefeller to benefit from it, anyone can put a joint venture together.
In reality a joint venture is very similar to an affiliate arrangement. The only difference is JV’s are often closed door affairs and affiliate schemes are widely publicised.
With an online JV usually one party will supply a product and the JV partner will offer this product to his list of customers. Profits are often split 50/50 after costs. So if a product sells for £97 and the cost of the product and payment processing is £7, each party will receive £45 per sales.
If your £97 product is sold for £97 to your joint venture partners list and you receive two hundred sales you will both be happy. Each partner receives £9,000 for sending out one email.
These figures may seem high but I have actually down played them. Some JV’s bring hundreds of thousands for each partner, but these are usually higher end products promoted by big list owners.
It is unusual for a newbie to get a JV that will net them over £100,000 from one partner. However with a bit of tenacity you can snare multiple JV partners for one product and bank over £100,000 in pure profits.
What Are The Benefits Of A Joint Venture?
For a JV to work both parties have to benefit. If your JV partner does not benefit they are unlikely to work with you again and you have just blown any future lucrative sales.
The benefits for your JV partner are fairly obvious they get:
1.A fresh quality product to market to his subscribers
1.He can market the product as a special offer for his subscribers – giving extra value to his list
1.An income earning opportunity that could net them tens of thousands
Now don’t under estimate the power of giving your JV partner something special, something nobody else has access to. This is a great way to motivate your JV partners but we will come back to this later.
The benefits to you, especially if you’re a newbie are enormous.
Imagine earning the £9,000 we talked about above just from one joint venture!
How many days work do you currently have to do to earn £9,000?
How many hours in the car driving to and from work?
How many dull meetings do you have to attend?
Or how many times do you have to grit your teeth and hold your temper because of annoying customers or colleagues?
It’s a depressing thought I know.
But with the internet you can make thousands in days, hours or even sometimes minutes. And joint ventures are one of the fastest ways to do it.
Obviously the money pinging in to your account every few minutes is a glorious feeling. But that is just the short term benefit, you get something much more valuable than the initial rush of money.
You get a list for free!
In fact it’s better than that, they are paying you to come on your list. No SEO, Google PPC, article marketing or social marketing needed, you have an instant list.
A number of newbie internet marketers built their lists with JV’s. Just so you fully grasp what I’m saying they started without a list, produced a product, found JV partners and then the JV partners sold the products. All of a sudden the internet newbie becomes a player in the market. The newbie has created an overnight list, piggy backing on someone else’s success.
And the best thing about the list you’re JV partner builds for you?
They are buyers.
Not tyre kickers as we call them, 100% bona fide buyers who are willing to pay for quality products.
A list of 200 buyers is worth a list of 2,000 normal opt in subscribers. In fact your list of 200 will make you more money than the list of 2,000.
You can use this list to promote your own future products and keep all the money or use your list to promote other people’s products. The list will keep on paying you for month’s or even years.
So far you have gained cash, £9,000 in this example and a very valuable asset (the list) that will pay you again and again.
But that’s not all.
You also have a JV partner that you can go back to again who will welcome you with open arms… after all you just made him £9,000!
If you can come up with another product you know you are guaranteed sales, some from your own list and some from your JV partner. The money is on the table just waiting for you to take it.
You have also got some instant expert status. Because of your JV’s partners list you have now been seen by thousands of people and your JV partner has endorsed you.
Instant awareness and credibility.
Do you think any of the people who don’t buy will check you out? Yep and some of them will register with you even though they did not buy, especially if you offer a free report. Even more subscribers you can market to again.
The final advantage of the JV is that it never cost you a penny. No advertising costs at all. Not many other business models can boast zero costs. You have achieved all this risk free.
So to summarise the advantages of the JV for you the product owner are:
1.Huge cash potential, sometimes tens of thousands per JV
1.A buyers list of subscribers built for you
1.The ability to remarket or up sell your buyers
1.A JV partner you can work with again
1.Instant Expert Status
1.Access to a list of targeted customers sometimes your competitors list
I hope you can start to see the possibility’s JV’s can open up for you. And don’t make the mistake of thinking this only works in the biz op market, you can follow this principle in any market.
Now I will show you how to find your JV partners, how to approach them and how to make sure they promote your product.
I hope you’re excited about making money with joint ventures. You can make tens of thousands overnight without having any customers of your own. Even more importantly you get your very own list and as I’m sure you’ve heard before “the money is in the list”.
So now we are going to concentrate on how to find those JV partners.
Where Do You Find JV Partners?
This is the easy part thanks to our friend the internet.
The first step is get a keyword list together that is related to the Niche your product is in. So if your product is in the self help Niche dealing with low self esteem you would look for keywords related to low confidence or low self esteem.
Use Google’s keyword tool to do this at https://adwords.google.co.uk/select/KeywordToolExternal
As you can see I have dropped in a screenshot from a keyword search for “self esteem”.
If you want to enlarge the image just click on it.
The search above has given me a list of around twenty keywords (some are below where I took the screenshot from so are not visible to you) with more than10,000 searches a month.
You would take a note of these top twenty or so keywords and keep them safe. We are now ready to compile our list of JV partners.
Open up an excel spreadsheet or a word document so you can keep a note of all potential JV partners website and email addresses.
Next take your keyword list and type one of the keywords in to Google. When I did this for “self esteem” I got 15.5 million results, so you will have a lot to go at.
Look at each website on the first ten or twenty pages of Google to begin with and check if they have any method of capturing email addresses. So do they have somewhere for people to log in? Or do they have a free report they are giving away
If they have some way of capturing email addresses they obviously have a list and are a potential JV partner. If they are at the top of Google there is every chance they have a huge list! If you can bag one of those we could be talking big money.
A little tip, check all of the sites on Google the adverts and the natural search results.
I have to hold my hands up here and say the searching for partners is dull, but hey if it can net me £10,000 a time and I get five JV partners I can handle it. In fact I often do this in front of the TV with a glass of wine at my side, so it’s not all bad.
If you really do this early work diligently you should be able to get a list of over 100 JV partners, I’ve sometimes amassed over 500.
But we can do better than that. We can also repeat those keywords with the word “ezine” after it. This will throw up more very relevant potential JV partners. An ezine is basically an online newsletter which is perfect for us because ezine’s have thousands of subscribers and they regularly communicate with their list.
You can also use http://www.clickbank.com/ to find potential JV partners. Simply go to the “marketplace” and type in your niche. Again make a list of any suitable websites and emails you might find.
If you want to go that extra mile you can use a little trick of the trade. From clickbank we have got a list of product owners which is great because they are going to have buyer lists which as I’ve said before are super responsive.
But what if we could get a list of people who promote other people’s products?
These are our PRIME targets because we know they are actively promoting either affiliate schemes or JV’s. These sites are likely to be very responsive to promoting your product.
So to find these promoters of products go to Google and type “link:(put domain name you are searching here). This will bring up a list of people who are linking to that site. The majority of these will be people actually promoting that product.
You can repeat this task with every relevant product on clickbank. This particular list is very, very targeted because we know they are happy to promote other people’s products.
Below I have found a hypnosis product on clickbank and used the link trick so I typed in to Google “link: www.conversational-hypnosis.com/”
As you can see from the screenshot above this has brought me 62 links. One of those links is from clickbank itself so that leaves me with 61 potential JV partners and every one of them I know is willing to promote other people’s products. Depending on your Niche if you do this with every product on clickbank you will get several hundred, sometimes thousands of potential JV partners.
So to get a huge list of potential JV partners we have:
1.Used Google’s keyword tool to produce a keyword list
1.Opened up a document like Excel to record JV partners web and email addresses
1.Typed our keywords in to Google to find potential JV partners
1.Put the word Ezine after our keyword to expand our list
1.Made a note of any website in our Niche from clickbank
1.Used the “link” trick to identify active affiliates in our niche
Once you have completed this list you have potential JV partners that could generate you tens if not hundreds of thousands of pounds depending on the product.
In the next article I will show you exactly how to approach these JV partners so you can unleash all the untapped profits you have sitting in front of you.
If you followed the advice of the previous article you should now have hundreds of potential JV partners sitting on your PC. But why on earth would they deal with you? What have you got to offer and how do you approach these big hitters?
These are all valid questions and you should be asking yourself these questions before you approach a potential JV partner.
Why Would A Big Hitter JV With You?
Before we go any further let me make it clear that even as a newbie you can JV with big hitters.
I’m not saying it’s easy but it happens all the time. So don’t just go after small fry, the big bucks are with the guys with a huge list especially if they endorse your product.
Andrew Reynolds made over £3.9 million with JV’s in one year. To do this he JV’d with people who have big lists, you need to do the same. And remember this could be someone else’s product you have bought the resale licence for and rebranded, so don’t worry if product ideas are not your strength.
So what would motivate someone to JV with you and how can we use this to our advantage?
Show Them The Money!
The most obvious reason someone would JV with you is for money. Most of these big hitters are in it for the cash, it’s a pure and simple fact. So as a newbie how can we entice them to partner with us using profit as our leverage?
The only way anything will make real money is to have a quality product and quality sales copy. So when you approach them you should give the benefits of the product and send them a free copy of the product and the sales copy to review.
The big hitter only wants to promote something that makes them good money, so they will want to know your offer converts. If you have done some testing and can give them conversion rates this will show you are professional.
If you’ve not sold any product yet it would be worth setting up a small focused pay per click campaign focusing on conversions rather than cash. Look at Google Ads made simple on the site to get help with this.
So if we can tell the big hitter your offer has been converting at 5% that is likely to get them excited.
To earn cash your partner will also want to know what the retail price of the product is, what percentage profit split your willing to give and what the costs of producing and delivering the product are.
The normal split on JV’s is 50% after costs. So let’s assume your product is £197 and all costs come to £17, each party would receive £90. But will this get you noticed as a newbie? I don’t think so.
When deciding on what to offer our JV partner it is important to remember what you are trying to achieve with your JV. Obviously you want money that goes without saying but you also want a list of your own. By JVing with a partner you will get a buyers list that you can market to again and again.
Bearing this in mind why not offer the real big hitters in your niche a really, really strong offer. How about giving them 70% of the profits from each sale?
Would that get their attention? Do you think this would make you stand out in the crowd? Damn right.
If we want to really get our JV partner excited you could offer them a percentage of any up sells their customers buy. If you haven’t thought about at an up sell, you need to, get this in place before you get your launch ready.
Depending on your market the up sell could be a DVD set, an audio programme or even a seminar. Again you can purchase resale rights products if you don’t want to create this yourself.
Giving your JV a percentage of the up sell will also make you stand out.
This time give a lower percentage of the profits, I would suggest 40% to 50%. Your JV partner will be delighted with this as up sells are usually more expensive than the original product. So if your initial product is £197 you’re up sell might be £497, this could net your JV partner another £200 per sale.
Lets take a look at the numbers for a moment. Let’s assume your big hitter has a 20,000 list and your offer gets a 1% response.
With the £197 product we talked about earlier your JV partner would earn £25,200 (at 70% of the profits) from the initial offer.
You would make £10,800 pure profit and gain a list of 200 hot buyers. And remember this is just one JV.
Lets assume 15% (which is reasonable) of the original buyers take your up sell at £497. Each up sell creates £450 profit. If you spilt this 50/50 you and your JV partner will earn another £6,750 each.
In total your JV partner has made almost £32,000 for almost no work. Do you think they would like to work with you again?
Your first JV has earned you over £17,500. All from one contact! How cool would that be?
With these sorts of tactics you have a great chance of hooking one of the big fish in your niche. But I would add a couple of other things to your proposal.
Firstly you need to mention when they will get paid. Remember you must factor in refunds, so if you offer a 30 day money back guarantee you need to wait at least forty days before you’re sending out a cheque.
Secondly you want to give them a way of tracking sales. This can be done simply with affiliate tracking software. I would personally recommend 1st Shopping Cart because it does everything from list management, auto responders and affiliate creation, reporting and tracking. 1st shopping Cart gives you everything you need for your internet business.
If you show your potential JV partner you have tracking in place, that is easily accessed it will give them comfort when dealing with you. Again you look professional rather than like a newbie.
I think we have pretty much nailed the money motivation with our potential JV partner. But what else would make them want to do business with us?
Make Them Look Good!
I’ve talked about over delivering to your subscribers many times and these big hitters understand this concept. If you can help them over deliver to their subscribers they in turn get some reflective glory.
Basically you make them look good with their customers.
You make your JV partner look good by giving their customers something special. This something special has to be something that is ONLY available to that particular JV partner.
You could offer their customers a discounted price, although I personally don’t like discounting. If I am putting together a “special” JV offer I would offer extra bonuses.
So in the sales copy you could say “Business Opportunities Mentor subscribers get a fantastic additional bonus package worth $395, these bonuses are only available to Business Opportunity Mentor subscribers, so act quickly”.
Although the above copy is a little clumsy I’m sure you get the idea.
Offering special bonuses to your JV partners list will give you the best chance of JVing with a real authority in your niche.
And guess what happens if you do JV with one of the big boys?
Other people will come looking for you. It becomes a snowball, success creates success.
Finally I would make it easy for your JV partner to press the button on your offer. Have ready pre written emails that they can send to their list, this way they literally don’t have to think about it. They press a button and go. Now most good internet marketers will do their own email but give them the option it shows your thinking of them.
If you put all these strategies together you will have an irresistible offer for a JV partner. We have hit their two hot buttons, financial gain and giving added value to their subscribers.
1.Offered them a quality relevant product with good sales copy
1.Given them proven conversion rates
1.Offered them a massive % of the profits
1.Given them a slice of any up sells
1.Allowed them to track their sales
1.Given a very special offer for their subscribers ONLY
1.Prepared emails for them so they don’t have any work to do themselves
If you hit all of these points in your JV pitch you will get results, you will blow the competition away. And remember one JV partner can earn you thousands or even tens of thousands and build you a list on autopilot.
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