| By :
Ronda Del Boccio
There are no shortcuts in business, but there ARE ways to use the power of leverage in profitable ways. You are about to find out how to earn much more money without adding new equipment, services, staff or hours of labor to your life through organizing joint ventures (JVs). No matter what kind of business you run, what products you sell or services you offer, you can serve both your customers and your bank account better by organizing joint ventures, or JVs. All you need is a sincere desire to serve your customers even better than you already do plus an eye for increasing leverage. A JV happens when two or more businesses create a deal that is mutually beneficial to both companies and to all customers they serve, creating a win-win-win scenario. While it may sound like "pie in the sky," it is an extremely productive way to raise your bottom line. This is a game of matching. You are filling a need with an asset or finding an asset that fulfills one of your needs. Get started by writing down your answers to the following questions. - What product, service or system do I have that other businesses would benefit from having or using? - What systems, services or products do I need that would better serve my clients/customers without any extra work on my part? Let me give you a real-life example so you can understand. An entrepreneur has a mostly automated system for improving traffic to websites. He sells this service from his own website and through affiliates (distributors who earn a commission for selling his membership). Now he wants to increase his leverage. When he considers what type of business would benefit from using his service, he comes up with these possibilities. - Bloggers
- MLM professionals
- Internet marketers
- Bricks and mortar businesses that have a presence online (at least a basic website) His needs include: - Customers to use his monthly service - Affiliates (or distributors) who will act as a sales force to sell his service to their customers - Businesses that will integrate his system into their own Organizing a joint venture also improves his leverage and extends his reach because he will gain customers and affiliates as part of the deal. He will create a win-win-win by finding someone who will integrate his service into their business. As you read what our traffic guy does in order to determine who is the right fit for a JV, realize that you will do the same for yourself. In the course of his research, he finds an entrepreneur who runs a school teaching the skills of running an online business. Researching the Possibilities Before diving into a relationship, he has to find out who would be the best JV partner. 1. He researches the company and business owner to make sure there is currently enough traffic to make it worth his while. He can determine this by looking at their website rankings on Alexa.com and Quantcast.com. If this person only has a few students, there is no profit in it for him. However, if the school is already thriving, the potential for growth is huge. 2. He gets to know the other business owner. For one thing, he wants to ensure that the way she runs her business is in philosophical alignment with the way he operates his. Both potential partners get to know each other. They have to explore whether their proposal is a "match made in heaven." They want to boost the results that come as a result of their collaboration. Organizing the details Assuming all goes well, the two owners create an agreement between them and move forward. The arrangement looks like this: The university students all use the traffic program free for the first three months. Then, the students get a special price from then forward. It might be called an "Inner Circle" rate. 3. They don't get it on the day they enroll but rather after they already have their website and blog established and after they have gained an understanding of how to drive traffic. Implementation Phase The owner of the traffic system makes a special page for his JV partner, the university owner, to share with her students. The training program owner has the perfect tool for her students. She incorporates it into the way she teaches. It makes her life easier and brings better results for those taking her training when they have the right tools to grow their business. Ready to find out how the win-win-win wokrs? For the traffic system Maybe you are wondering how giving away three free months of service to a whole bunch of people serves our traffic guy. Imagine this: Without any advertising, he gains a few hundred brand new customers a month. They use it free for 3 months, and because this is such a perfect match, they are going to continue to buy the service. Most if not all of these people will also become his affiliates and offer his service to their clientele, so he gains a prime "sales force" consisting of people who are already happy customers. So if our school generates 500 new students per month, he gains 6,000 new customers annually plus maybe 3,000 more who are current advanced students, with no effort other than making a few phone calls and a modified webpage or two. Even though some will not retain the service, most will. For the university students They are so excited to have the perfect tool to generate traffic, and since they know what they are doing by the time they get their free trial, they are using the program daily right from the start. And since they're hooked on his service and using it every day for their business, they are going to be long-term customers as well as affiliates. Additionally, a significant number of the students will gain a source of income by promoting the traffic students for their customers or clients. They become a sales force and are glad to earn a commission. For the online school You already know that a good joint venture must be a win for all parties involved. So far, you've seen how the traffic guy and the students win, but what about the online university owner? The owner of the education program also wins in a big way, because she is able to provide something every student needs, at no cost to her and at no cost to them, for a whole three months. This also means she has a highly valuable bonus added to her program. Say the traffic system costs $97 per month. They save $297 the first quarter. She is setting them up for success by offering such a useful tool for them. Everybody wins when you put the deal together in the right way, and that's exactly how it should be. You can tell that taking just a little time to do some research and make a few calls can truly raise your bottom line. I hope you will start organizing joint ventures for your business right away.
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