When forming a joint venture with another business, the first and foremost step is the “approach” you use while contacting them. Participating in a joint venture with another prominent business can be extremely lucrative to your business, as it will decide the future of your business.
A wrong approach doesn’t only affects your business and your confidence but also affects your future dealings if its not corrected at the right time.
Addressing your proposal with “Dear Webmaster” or as simple as “Hi” is a good enough reason to lend your proposal in trash. Not describing your business details in project and not giving any information about yourself will not give any extra brownie points to you but it will surely break all your hopes of joint venture. Misspellings and unprofessional work is another big turn-off for these kinds of dealings.
A joint venture is not as simple as lets say a link exchange. Research and commitment from both parties is what makes it successful business strategy.
The actual process of sending the joint venture proposal can be made via snail mail, but as e-mail is quicker, it should be your first consideration. If they have provided their phone number in their contact information, let them know that after a few days. You would like to follow up with a personal phone call to go over the details. Stipulate a time frame that you would like to call and ask them to reply back if that time frame is suitable to them. This will show your eagerness to work and your credibility as a businessman.
Some of the things have to be kept in the mind while sending proposal by email. Firstly, you should be “Precise” and “clear” with your proposal. There should not be some hidden conditions, which you are cooking in your mind. Just be clear about your objectives. Make sure to personalize your email by using their name. It’ll sign towards your eagerness for a future relationship! Your email should reflect your professionalism and trust. Complement them on points you really liked about their company, don’t give fake complements as it not only gives you a bad reputation but also closes the scope of all future ventures with that company.
Include information about yourself, your website, your customer base and the services and products you offer. This is what they want to know! Also pointing out how you feel your customer base would have an interest in his/her products or services and vice-versa will be the “feature” of your mail. So do a good research while quoting what you feel.
Also give a detail description of how both of you can benefit financially and gain added exposure. While ending don’t ever forget to check that all spelling and grammar is correct.
If you are proposing a joint venture agreement where the other party will be the one actually endorsing, publicizing, or marketing your product, a larger percentage of each sale should go to the publisher. In this case, you have to keep in mind that they are doing all the work while endorsing your product to his/her established customer base.
This approach will definitely give you an upper hand! Once you have found the partner you need, it would probably be more beneficial to you to get a written and signed agreement from the other parties involved outlining the terms of the joint venture. It will not only give you security but will show your professional attitude towards the work.