The internet is not only a major source of information. It is also a major source of making money. And one way of making money is through joint ventures.
What is Joint Ventures
Joint ventures means cooperating rather than competing. Joint ventures are partnerships, businesses can join together to work on a project for a period of time. Having joint ventures with other businesses can increase your chances of winning your competition, increase sales and increase your profits quickly.
In a Joint venture, two or more parent companies agrees to share capital, technology, human resources, risks and rewards in a formation of a new entity under shared managerial power.
How to Select Joint Venture
Before going into a joint venture, you should consider something first. The most important things to think about before going into a joint venture are as follows
- Before going into a joint venture, be sure to first screen prospective partners. Make sure that you are on the same level of the industry.
- Check the credentials of the other party by doing interviews and research. Check their previous business and also the sales that they are getting. You may also want to check customer feedback regarding their services.
- You should also develop an exit strategy and terms of dissolution of the joint venture in case things would go wrong.
- You should also try to think of the most appropriate structure for you joint ventures, for example most joint ventures involving fast growing companies are structured as strategic corporate partnership.
- You should also take notice of the availability of appreciated or depreciated property being contributed to the joint venture; by misunderstanding the significance of appreciated property, companies can weaken the economics of the deal for themselves and their parties.
- You should also point out the different special allocations of income, gain, loss or deduction to be made among the partners and so with the compensation to the members that provide services.
- You should also take note of the role of your business architect, this is a person that initiates new business ventures or leads business innovations, designs a winning business model and builds sustainable balanced business system for a lasting success.
Benefits of Joint Ventures
By being a partner, your joint venture partners can give you referrals from their clients. This can really increase your profit and sales. It can also increase your reputation and more people will buy from you. In turn, you will also have to refer your partner’s website. It is a give and take relationship.
- Lessen your operating costs once you share then with other companies.
- Get you more leads and referrals for businesses related to yours.
- Offer your customers varying products and services besides the one coming from you.
- Get more business associates that will prove important to you and your business.
- Receive free advice and vital information regarding and from other businesses.
How to Find Joint Ventures?
You can look for businesses to joint venture with whether online or offline. It would be best to find one that has the same target audience but is not really in direct competition with yours.
To find a joint venture online, you can participate in discussion groups, forums and other forms of communication that targets the market you are into. You can also search in web directories and search engines to find the right businesses you can joint venture into.
Joint ventures through affiliate programs are the most common joint venture kind found over the Internet. But being the most widespread does not make it the most beneficial.
In affiliate marketing, the focus is more on recruiting customers to be the sales force of the products they have bought. Affiliate programs are great means of achieving selling power and reaching out to more people with the use of the Internet. But then many people have already made numerous profits selling products or service that are not their own and do not ship to the customers themselves. As much as 90 percent of total sales are made through affiliate marketing though.