A successful joint venture marketing effort is goal of many small businesses, and is a great way to increase market visibility and profits.
Joint venture marketing is rising in popularity everyday, but it does take some skill, good planning and foresight to execute. Here are steps a business owner should take to be successful in this arena… 1.Write down your goals and desired outcome
Be sure to have specific, measurable and action-oriented goals for your joint venture, along with a realistic time frame for their execution. These should be written down and easily accessible so that you can refer to them when implementing your action plan.
2.Analyze target market you want to reach
Begin by reviewing your current clientele, then choosing clientele you want to attract. Analyze your target market for buying habits, marketing trends, etc. Brainstorm other products and services used by your target market and determine whether there’s synergy with what you offer.
3.Identify potential partners who already serve this clientele
Think of potential partners that have influence and credibility with your target market. Remember that your network of business associates, suppliers, family and friends may be a good fit or can introduce you to prospective partners. Create a list of potential partners that offer best expansion opportunities, and have most desirable client base.
4.Determine your joint venture format
Do you want to offer a profit sharing format, or a reciprocal arrangement, or both? If you choose to pay your partner a percentage of profits, then you will pay them a specific amount or percentage for each new client they send your way. If you choose a reciprocal arrangement, then you will systematically send clients to each other. Think of something that is of high perceived value to offer clients.
5.Determine your budget
It goes without saying that you should control costs from beginning of a project. That means you need to sit down at start and list every item that’s required to carry out joint venture.