Joint_Venture_Risks

Joint Venture Risks

You have a killer product that is sure to be in high demand and a great idea of how to supply it to the customers. You want to get it into the hands of every person that crosses your path. But you do not know how to create a wining sales page, a selling pitch, or generate the leads needed to produce the sales. You are faced with the decision to either hire a freelancer or enter into a joint venture contract with someone more skilled in those areas than you are. What you have to do is weigh the benefits of a joint venture against the risks.

Obviously, a joint venture allows you to get the tasks done that you would not normally be able to do yourself. It allows you to split the overhead, get the job done quicker, and generate more revenue than you would on your own. As a team works more efficiently than the individual, it is easy to see why a joint venture may be so appealing. After all, less hassle and waste of time means more relaxation and profit.

However, some fail to see the risks involved in a joint venture. Depending upon the purpose of the joint venture, you may risk more than you can gain. The affiliate marketing relationship of a joint venture contract really holds no risks as all your affiliates are doing is promoting your product and site. If they decide to stop, you lose nothing more than the profit they themselves were generating which you can make up by getting another affiliate marketer. It is in the partnership of webmasters and idea holders or product creators that the risk comes in to play.

If you are going to be working on a project or product together, the lines of who owns what become very dim. You run the risk of your partner bailing on you and becoming your competitor. What started out as your idea now becomes your competition. Additionally, there is never any guarantee that your product or idea will be well received by the public no matter how great your ad campaign is. You could end up losing more money than you would have invested had you attempted the project alone. Joint ventures also raise the question of credibility on your part. After all, information on your partners are not always readily available at the conception of a joint venture.

Joint ventures have many obvious risks but far greater advantages. If entered into properly and with the proper precautions in place, they can prove to be quite lucrative to all involved. Joint ventures should be treated like legal contracts; they should be well researched and evaluated before signing on the dotted line as well as attended to during the implementation of the venture.