No matter how proudly you embrace the solo entrepreneur title, there comes a time when you absolutely must reach out for help. And for savvy business owners, that help often comes in the form of Joint Venture (JV) partners.
Before we go any further, let's first define the term joint venture. To keep the definition simple, I'm going to talk about joint ventures between people or entrepreneurs but the term can also apply to businesses or companies.
What Does Joint-Venture Mean?
A joint venture is when two entrepreneurs join together in a partnership to achieve a common goal and share in the profits.
Let me give you an example of what this might look like:
Say you have one entrepreneur who sells handmade ceramic cat feeding bowls and another who sells organic cat food. Their services complement each other and the audiences are similar.
The two business owners meet at a conference and decide they like each other and they want to partner together.
Each person agrees to promote the other person's service by sending an email out to their list and to split the revenues in the form of a commission.
But wait, isn't that just an affiliate commission?
Yes and no. A joint-venture differs from an affiliate relationship because it is a reciprocal relationship. It becomes a joint venture because of the additional agreement to cross promote each other.
Person A sends out an email to their audience "I just met this guy who makes organic cat food with limited ingredients and free of fillers and chemicals. I gave some to my finicky cat and she loved it! Here's how you can order."
Person B sends out an email to their audience "I know you've been loving my organic cat food. I just met someone who makes the cutest ceramic food bowls for your cat and she has them at a great price. Here's how you can buy some."
In other words, a joint venture is a mutually beneficial relationship because both entrepreneurs have the opportunity to grow their list by gaining exposure to another audience and make money on their promotional efforts in the form of a commission from people they refer.
Why You Should Care About Joint Ventures
As a solo entrepreneur, you want to maximize your marketing efforts and profits.
JV partners act as your own private sales army, spreading the word about your products and services to a whole new audience—theirs. Not only do you reach people who might otherwise never encounter you, but you also benefit from your JV partners’ existing relationships. By promoting you, a JV Partner is endorsing you to her audience. She’s saying, “I know this seller; I trust them, and you should, too.”
But even with all those many benefits, coaches and product sellers sometimes struggle to find great partners. That means your goal is to recruit higher performing partners.
The only question is, where do you find these great partners?
Pick Your Virtual Assistant's Brain
Chances are good that your VA works for other business owners in similar niches. If you’re a business coach, your VA very likely works with several other coaches, and is in a position to know...
- Where their clients are in the business development cycle (ideally you want established partners, not newbies)
- Their audience demographics (so your VA will know if they’re a good fit or not)
- Their willingness to promote (some people simply don’t do JV partnership, so it’s a waste of time to approach them)
I'm not advocating breaking any confidentiality agreements the VA has with her other clients, but simply approaching your VA for an introduction to another of his or her clients that may be interested in speaking to you about a joint venture.
Look To Your Best Clients
Especially if you’re a business coach or some kind of coach, your clients might just be your biggest fans—and they’re in a position to recommend you to friends, family, social connections, and elsewhere.
Be sure your clients all know that you offer a referral/affiliate program, how to sign up, and what the benefits are.
Your Competitors
Your competitors might just be your biggest affiliates, if you give them a chance.
In some circles (such as business and relationship coaching) clients tend to “graduate” from one coach and move to another. This is normal and to be expected. And when you’re on good terms with your competitors, the coach their ex-clients move to might just be you.
Don’t be afraid to look in unusual places for your next JV partner. You really never know who can connect you with potential clients and partners. Think about all your relationships—from your team to your social circles to your competitors and colleagues—and consider all of their relationships and how far that might stretch. Then pick up the phone or draft an email, and start leveraging your contacts!
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