Tag Archives | Venture Partner

Avoid_Mistakes_of_Joint_Ventures

By Randy R on August 13, 2010 in JV

Avoid Mistakes of Joint Ventures

As you already know, joint ventures are a lucrative agreement for all parties involved. After all, they have the sole purpose of creating profits so they have to succeed. You may want to find a partner right away and start on your marketing campaign so you can both start making a lot of money. But what you need to know before enterting a joint venture agreement are some mistakes to avoid.

All too often, as an affiliate marketer, you may find someone seeking a joint venture partner to market their product. They are even willing to pay above the competition. This may make you want to jump on the opportunity before someone else. After all, if you can make the same sales you are already making but at a higher cut, why not? The problem is, if you are not willing to research a little on the product, you may find that you are stuck endorsing and promoting a product that is not worth anyone’s time let alone yours. While you can surely drop the campaign once you do find this out, you risk tarnishing your reputation and rapport with your clients or users.

Alternatively, if you are looking for an affiliate marketer to enter into a joint venture project or a peer within your niche, you should make sure that you are not only offering them a nice cut in the deal but also a quality product. Ask yourself if you would be comfortable marketing the same product to your users and if your product is really worth endorsing. If you are cross-promoting with a fellow peer in your niche, you would want them to give you a high quality product. You do not want your name to be mud in your niche. Repeat customers and a loyal fan base are key to generating a guaranteed income. If you tarnish that relationship, you will find it hard to build it back up. As relationships with your customers are key, it is also important that your joint venture partner be a reputable one.

Joint ventures are often short time. Many times, they are used for you to get your foot in the door or to promote a new product. Once you have developed a client base, you no longer need help in promotion that joint ventures offer. Additionally, some relationships just do not seem to work out. Whether it be due to lack of luster or charisma or desire to be in the joint venture agreement any longer, you and your partner should forsee a potential break in the relationship and have an opt-out option for such a case. You want to be able to end the joint venture project amicably.

Joint ventures are the key to e-commerce success and promotions. If you have already weighed the pros and cons and come to the conclusion that a joint venture is the right venue for you, then all you have to do is assure that you approach them properly. A successful joint venture comes down to the overall structure of the team.

Joint_Venture_Accounting

By Randy R on July 19, 2010 in JV

Joint Venture Accounting

A joint venture is an association similar to a partnership, the only difference being the time scope of the project that is joint venture is entered into for a limited and specific object. Because joint ventures are considered relatively short in relationship value, a ‘real’ partnership would be a unnecessary hassle. As a joint venture is still a short-term partnership nonetheless with both costs and profits, it is still important to be able to keep accurate bookkeeping. A couple of accounting methods can be implemented in a joint venture scenario.

The more obvious method would be to have a set of books that are separate from the actual corporation and only used in joint venture documentation. The books are taken as usual and so no real risks are seen. In a more short term joint venture project, separate books are not really needed nor provided.

Participants of a joint venture team are much like salesmen for a company; they go out on the company’s behalf and spend money on goods, clients, or needs to make your company a success. They file an expense report with you so you have documentation of both their efforts and expenses. A joint venture partner must be able to do the same; provide documentation of their purchases for the joint venture.This is achieved much like individual accounting. The partner logs his expenses in a separate book addressing the joint venture. Once all have reported their expenses, they are jointly marked on a statement known as a memorandum statement. The profits and losses are then decided off this statement and divided accordingly.

The profits and losses will vary depending on the relationship of the team. If one partner is solely the marketer, he will report more profits than the one with the product to market. The profits of his books will be equivalent to the losses of the other’s books. This is how the books are reconciled easily.

A joint venture is still a business agreement and should be approached as such. This includes the accounting side of business. Keeping an accurate record not only helps you see what is owed or gained, but whether or not the efforts of the joint venture are a success or not. As the books are also kept on the group as a whole, it is easier to determine that it is because of the group that X-amount of profit is being made or X-amount of loss is being taken. At this point, you can then decide whether or not to continue with a joint venture as opposed to a partnership which you are in for the long haul.

Joint_Venture_Credibility

By Randy R on July 9, 2010 in JV

Joint Venture Credibility

You have the next big idea since Google. You are motivated and have the means to create and promote this idea but lack one thing: credibility. In the day where skepticism is the number one personality trait of e-visitors, it can be hard if not daunting to ‘sell’ your big idea. Everyone always wants proof without having to pay for it; better still, they want a review from someone they trust. Without credibility, you may as well be trying to sell a burger to a vegetarian.

Just as you would not trust your coworker with giving you legal advice or your dentist with selling you computer supplies, not everyone will be receptive to an internet freshman trying to sell them marketing materials and the like. Get a backing or testimonial from Shoemoney and you are sure to boost your credibility a hundred fold. Being as how that is not very likely, and not always pertinent to the field you are in, you should be looking for a joint venture partner who already has the connections and credibility to market your idea.

Products or ideas are not always sold based on their merit; often people are not readily willing to spend their money on something they have no guarantee of working. Sometimes it is the proper sales pitch, landing page, or testimonial that gives them the extra push they need. Joint ventures should be entered with this idea in mind; gathering a group of rookies will take just as long as if you had decided against a joint venture.

Building a rapport with your clients is something that develops over time. If you do not have the time to wait, getting someone who already has a developed rapport to join you in a joint venture would be the next best option. Not only is the legwork completed for you, but they possibly have the leads already lined up that you need as well. Everyone gets what they want then; you get the customer base, and your partner gets something worth offering to them while cashing in on a nice little commission.

Creating a joint venture is a prosperous activity. It is used by affiliate marketers accross the net to develop leads and credibility. Just as with any business or shop, you will want to build up some credibility in your community to allow for more sales, repeat business, and greater chance of word of mouth advertising. Supply in the e-commerce world is usually always higher than the demand so you need a good reason to motivate buyers to your product in particular. YOu know your product is better than the competition; do not let something as simple as little to no credibility slow you down. Enter a joint venture with a well known marketer in your field and be on your way to prosperity.

Global_Joint_Ventures

By Randy R on June 18, 2010 in JV

Global Joint Ventures Everyone wants to earn money. It is the key to having not only the things we need but the things we want as well. A regular 9-5 job does not give much room for wasting time on efforts that will not be fruitful. Joint ventures allow for efficient and effective time management to ensure you the profits you are looking for. Ideally, you will want to partner with someone who can be on at times when you are not available. This would mean partnering with someone on the other side of the world from you. Naturally, there are risks involved that you will need to outline and address early on in the joint venture setup, but the benefits are just as many. Being able to monopolize on every hour of every day could mean a step up over the competition. It would be a shame for you to miss a sale merely because you were not online to address a potential client’s questions. There are plenty of forums and means available for you to research your potential partner’s background. Ask. Seek. Find. You will find that by merely visiting your prospectives’ sites, reading his forum posts, and watching how he interacts not only with his customers, but the general public, you can learn a lot about his character. Not only will you want someone who will be a good representative of your name and brand, but someone that you feel you can work closely with. As joint ventures are very much like a partnership, you will want to make sure that all parties are comfortable with the terms and arrangements. You will want to also make sure that they are familiar with their roles and duties so no boundaries are crossed and communication is kept open. Knowing clearly what is expected of them will also allow for accountability to be applied. One thing to also consider is the language barrier in addition to the target audience. If your joint venture partner cannot communicate well with your target audience, he will not be of any help to you when you are not readily available online. Additionally, if your potential joint venture partner is not familiar with your target audience or region, he again will be of no help to you. A global investment in a joint venture with an international partner can have its advantages as well as its disadvantages. Research, commitment, and determination can help you in finding a partner that will not only meet your needs, but also provide you with the profits for which you are looking. Global joint ventures allow you to monopolize on what is precious to anyone trying to make money: time.

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