A joint venture is a partnership between two or more businesses. Joint ventures allow you to split the costs of product creation. When it’s time for the launch, you and your JV partner divide the profits. Joint ventures can be a lot of fun, but before you get involved you need to consider your mindset and the mindset of your potential partner.
Whats in it for me mentality
You don’t want to partner with someone that has a ‘what’s in it for me’ mentality. This type of joint venture is less likely to succeed because the focus is not where it should be – on providing value to your customers.
This doesn’t mean you can’t make a tidy profit from your joint venture. It does mean that you need to start your brainstorming and creation phase with the idea to serve your community.
For example, you might say, “How can I serve affiliate marketers?” This question will inspire you and your JV partner to come up with products geared toward this audience.
But keep in mind that you want to serve a customer with a specific need. Don’t just say, “How can I serve affiliate marketers?” Instead ask, “How can I serve new internet marketers that are desperate to see their first affiliate sale?”
Using this question, you could create a video or audio course with your JV partner that covers what affiliate marketing is and provides solid tips so affiliates can start earning some commissions.
If you wanted to, you and your JV partner could create a second course that goes more in-depth in affiliate marketing and you could aim it at intermediate affiliate marketers that have already made a few sales. It just comes down to knowing your audience and finding ways to serve them. Starting with the right mindset will help you and your JV partner create a better product.
Now here are 7 key processes to help you to develop a profitable joint venture partnership
- Do you need to enter into a JV partnership at this time.
- Decide how simple or complex you want your JV to be.
- Determine what type of JV offer would work best for, you and your partner
- Once you have decided on a JV type, plan who will do what.
- Decide on a communication system or protocol that would work best for you.
- Decide how you will keep track of your JV and all its details.
- Identify benefits you are looking for/can offer