Joint Venture Model
It's important to understand the complexity of convincing others to be a joint venture partner while also knowing how extremely beneficial it can be to you and the partner.
You should be using joint ventures to continually build up your wealth temple and your leverage so you become more desirable to bigger JV partners.
Joint ventures are the most powerful form of marketing you can use to grow your business fast.
Distribution network- how can you distribute the products, services or/and the market channels you have access to such as shows journals lists etc.
Intellectual information- anything information based and allows uniqueness/advantage, rights and content are key here.
Be empathetic- know the true motivation of yours and others markets especially those of your partners.
Persuasive terms- how you go about convincing others to become your partners, targeting their motivations is the best way.
JV assets- what you have which is unique and most likely under used, this is what you can use just for yourself or also use to help negotiate.
It's important to understand the complexity of convincing others to be a joint venture partner while also knowing how extremely beneficial it can be to you and the partner.
You should be using joint ventures to continually build up your wealth temple and your leverage so you become more desirable to bigger JV partners.
Joint ventures are the most powerful form of marketing you can use
Each area of the model is grouped as follows
Distribution network | Intellectual information | Persuasive terms | Be empathetic | JV assets |
|---|---|---|---|---|
Places | Content | Passivity | Audience needs | Your skills |
Shows | Marketing rights | Money | Partner needs/wants | Your knowledge |
Lists | - | Proof of your ability | Potential partners viewpoint | Your relationships |
Authoritative sites | - | Be in their shoes | Identify their concerns | Your backend |
- | - | Build strong relationship | Understand they don't want to mess up | - |
- | - | Use back end potential | Tell them the benefits for them | - |
- | - | Unused customers | How can they trust you | - |
Lets look closer at each element
Distribution network
Places- these are anywhere you can use whenever it's a physical location such as a store or a digital place such as a blog, usually with digital places you also have access to their lists. (this varies on terms)
Shows- these are places where you are live/recorded webinars, podcasts and stations are examples of this, they deserve their own mention as they are a unique way of building your authority and potentially getting sales as compared to the other areas.
Lists- these are contact lists whenever its email, social, even phone numbers the list can be all sorts such as a high quality list of leads or contact details of influencers, decision makers etc.
Authoritative sites- these are sites that will end up building your authority just due to association usually you need to be a guest whenever its a webinar or an article.
Intellectual information
Content- this is any information that is consumed whenever its a free piece such as an article or a paid product, everything that helps the consumer benefit in some way is content.
Marketing rights- this is the rights negotiated during joint ventures, they can be all sorts such as rights to the contact details of buyers. This includes money based and non monetary rights. So commissions, contact details, future sales, rights to sell other products through their network, selling their products through your distribution network, access to their content and marketing intelligence etc all fall under marketing rights.
Imagine how business owners spend 10+ years building their audience and the amount of resources they have invested, such as money time relationships, all types of investments and let's not forget the targeted audience as a result. Now imagine you getting access to all that at a fraction of the cost and time, this is what makes marketing rights essential as it builds up your own investments and makes you an even more attractive JV partner for future JV’s.
Some types of rights
Commissions on sales- this is a percentage of profits made on the direct sales of the joint ventures products/services. this can be commission for all parties or even just one, such as if you're a middle man you could take a 10% cut, then if you have a partner you can persuade them to let you have 100% commissions due to the back end potential.
Commissions on back end- this is a percentage of profit from sales after the first initial sale to a customer, this may mean selling a £10 ebook and then up selling other items such as bundles, subscriptions and even coaching. the commission is from the upsells. even making it so you get a small 10% is great for you if after initial sales you do nothing.
Access to buyers- this is when you get access to the buyers, this can be just for a single product/service or their whole buyer base, getting access to even just the buyers of the product promoted during the JV is very lucrative that it may be worthwhile to give up your commissions etc to convince them and that you just want the buyers information.
Access to marketing resources- these marketing resources can be anything marketing related whenever its intellectual based such as intelligence on certain markets or other forms such as manpower and systems. access to market intelligence is great if you can get it, then there is also the connections they have which is marketing based such as dominance of certain marketing channels, access to key distribution networks (think of their own joint ventures).
Joint marketing- quite straightforward all parties share in promoting the JV event this can mean both marketing and creating the event, there can be other terms such as one doing all the technical work, one only markets the offer to their audience etc. these terms will vary upon the parties ‘equalness’ the less equal party will be expected to do more as their leverage is not as strong. (in the beginning a turn key solution is your way of making up for your lack or leverage its also great in convincing others in general)
Access to production resources- these production resources can be anything production related whenever it's to produce an actual physical product or to help you design digital products such as a course, manpower and software is an example of production resources
Access to unique resources- these resources tend to be intellectual in nature and is seen as valuable such as a manual the company has made which they spent lots of time and money producing, they may have dominance in certain markets or something else you see as valuable
Access to key contacts- access to key contacts can be a term, these contacts can be influencers, suppliers, decision makers in departments of companies. you can use the joint venture to work towards working with who they have connections with, such as getting introduced to a key person in a company that you could JV with at a later date.
Rights to sell their product- this is simply getting the rights to sell their product, it can be possible to negotiate very favourable terms when you have a strong distribution network, imagine taking 90% due to the fact you have a huge network they won't have access to otherwise, if you're on the other end offered a low commision but they have a huge reach then accept it and think of what you can make on the back end.
Rights to use their brand- a brand can be corporate or personal, many businesses use others personal brands such as the george foreman grill is using the rights to his personal brand, using others brands can make the promotion come across as even bigger/better than it is, gurus may come together just to make the promotion seem better and as a result charge more.
Their authority can then help improve your own due to osmosis where the trust they have built with the audience is going to see you as credible as they are working with you.
Rights to use their distribution network- obtaining rights to use parts or all of their distribution network will significantly grow your own, even though not technically you own you took time to build a connection with a key person with a strong distribution network which you can use, which will help persuade future JV partners,
You can use their distribution network again and again in future Joint ventures, make sure you keep their trust by not abusing it as they may look to cancel the joint venture with you which will be a great loss to you
Persuasive terms
Passivity- make it as easy as possible for them to the point they do no work and you bring them a no brainer deal.
Money- make it concrete how much you expect them to make from the deal use realistic numbers and ask if the conversions you're using is correct if not readjust your calculations.
Proof of your ability- if you have proof of how you helped businesses grow that can help convince them that you can help them, this means you must work on getting lots of high quality testimonials and case studies to help convince potential partners.
Be in their shoes- you must communicate from their view of the world addressing their concerns and motivations. Which is covered in the be empathetic section.
Build strong relationship- it's important to spend time building up a relationship so they start to build trust in you in terms of your capability and reliability, later we cover a strategy to build a strong relationship.
Use back end potential- it can be a lot easier to convince potential partners if you reveal to them their back end potential from the deal, such as if it's a small product that's £10 you can communicate the potential amount of buyers and from that a reasonable conversion that buy a higher priced product they sell.
Unused customers- these are customer that are dormant and are waiting to be ‘activated’ waking up these customers to start buying again can be good for the partner and you.
Be empathetic
Audience needs- what is it the target audience needs/wants. Make sure you understand it very well so the joint venture won't be a bust. Convincing partners is nothing if the audience does not want/need what the offer is.
Partner needs/wants- what is it that motivates your potential partner? Do they really care about providing high quality content? Are they small and looking to build their authority? Do they want to make more money? You need to go through their content and platforms etc to identify their motivations, aspirations and key needs. Its best to develop your marketing eye to see how they are trying to show themselves and what they are trying to accomplish.
Potential Partners viewpoint- by going through their content and platforms look for how they see things, this viewpoint is very important in how you set up your pitch. These views are essentially logical versions of needs/wants such as give value to the audience is a viewpoint. While the money is in the list is another viewpoint.
Identify their concerns- what are their potential objections? How can you make these objections disappear, this requires you to be in their shoes understanding what motivates and concerns them. If you can't make concerns disappear show you understand their concerns.
Understand they don't want to mess up- it's human nature to avoid circumstances that can end badly, it's one of the main reasons to procrastinate, show them how working with you is entirely a win-win-win situation this means how it's good for them their audience and you.
Tell them the benefits for them- make sure to clearly explain the benefits that they will get to them, they don't care about your benefits only what they will get, you must sell them on how it is such a win for them to work with you.
How can they trust you- what can you do to get the partner to trust you? The best way is to build a relationship and reduce objections, by doing both you should make it very hard for the partner to refuse you based on trust.
The JV assets
Your Skills- what is it that you can do that few can? In most cases you need either a money making skill or a technical skill, the more skills you have the more persuasive your competence is, proof is where your competence is assumed this can be through qualifications, testimonials, case studies or an actual example of you showing them.
Your knowledge- this is what you know such as what the audience desires, how the deal can become even more beneficial to you later etc. unique knowledge can be used to persuade others, you can even use it to find a way of becoming a middle man for other JV partners.
Your relationships- these are your connections as well as the distribution systems you have access to since they go together, if you have access to big names in an industry then it is instantly much easier to convince a partner to do a deal with you, there is also publicity and decision maker relationships that you can use to convince potential partners.
Your backend- this is what you can make on what is not part of the deal this can be directly or indirectly, upsells is a direct way to make money on the backend while getting the contact details of your partners buyers and putting them through your trust funnel is an indirect way to improve your backend. With a solid backend strategy you can offer 100% commissions or even persuade them to give you 100% commissions.
The strategy to convince them to become a JV partner
To convince them to become your JV partner there is one key thing you must do which is to build up a relationship with them and start to slowly build up to a JV partnership. Most people don't trust random people and instead need to be worked slowly. While it's possible to do it straight away it's recommended to build a relationship.
Generally you should take a month to build up a relationship with the potential partners, the time does vary by the individual in general you don't want it to be too quick until you know them better yourself, after all there's nothing worse than working with someone you hate.
A relationship comes down to this
Unknown- they don’t know you they don't know if you could be a manipulative person or a genuine helpful person
Know- they know more about you, this is best done through talking with them (take about a month getting to know you)
Like- this is when they start to see you in a more friendly way, (get personal time with them or buy from them)
Trust- this is when they start to believe in your capabilities and are more likely to be friendly to you
Close friend- this is the sign of a great JV relationship when you can see them as a close friend, at this stage you will be helping each other continually launch and market each other's products/services.
The pitch process
Small information offer- this is anything that can help them and their audience and has no strings attached, this is items such as comments that improve their work, offering suggestions in similar markets that you happen to be in.
No products should be done here as it's a big offer and requires more trust before committing to a big offer.
Guest post
Here you offer to write a high quality post for them and make sure it's high quality, this by itself can leverage their resources although its very limited compared to an actual Joint venture.
When you get great feedback for them through your guest post then you can start to go on about bigger offers such as webinars, promotions etc.
Webinars
This is a slightly bigger offer than the previous, here you need to be seen as an expert and are trusted to bring results through the webinar. Now webinars can promote a product or it can be just informational. If you are promoting a product be willing to offer 100% commissions as long as you see very good back end potential from the deal.
The big campaign
After the results you get from the previous 3 methods you should be able to convince them to have a bigger joint venture with you, as you will have convinced them already of your ability to make them money, provide value and that you are reliable.
Offer to do everything for them and work on getting access to their audience and resources in some way. These campaigns require you to think and plan to the point you can offer them a turn key solution and make lots of profit for both of you.
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