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Site Build It Mastery Lesson
28 - Getting Maximum Leverage From Your First Joint Venture
Today we'll discuss something that you may or may not be ready for yet, but
setting up joint ventures with other related website owners should be one of
your priorities in the medium term.
Joint ventures offer the highest leverage you can get for making money online
Just some of the benefits of setting up JV's are -
FREE ADVERTISING - In the
majority of cases you receive 100% free advertising. You gain targeted
promotion at ZERO cost to yourself
FAST SETUP - Most joint
venture offers are quick and easy to set up. They take very little time and
preparation and you can have a profitable joint venture in the works in a
couple of hours
FANTASTIC RESULTS - You can
make thousands of dollars in profits for a half hour's work with a joint
FUTURE PROFITS - Set up
properly, you can make profits for YEARS from a successful joint venture
FAMOUS BRANDING - Another
great benefit of doing joint venture partnerships is that you get to brand
your name in your market. You can go from being a nobody to a well known
member of your niche market overnight...
Already some of my coaching students have asked my advice on setting up their
first joint venture deal – they have created a new product after doing market
research to find a need, but they haven’t yet built a customer list of their
own, and they want to make the biggest paycheck they can for the least amount of
While this a natural goal for most people to aim for, the problem is that they
are approaching the deal with the wrong mindset.
The fact is, the person with the CUSTOMERS has the power in every
transaction, while the person with the product has very little leverage most of
the time when you are brand new to a market.
Finding and nurturing a responsive, loyal group of customers is much more
difficult and time consuming that finding products to sell to them, and the
customer list is where the power is in any business.
It doesn’t matter what your product is, it can be copied, knocked off,
simulated or plagiarized until the cows come home and there’s very little you
can really do about it unless you want to tie yourself up in legal action for a
good part of your life.
The best way to approach a potential joint venture partner, especially if you
are brand new, have a brand new product, and are inexperienced at doing JV
deals, it to realize that you don’t hold many cards and act accordingly.
What do I mean by this?
Well, remembering that you are basically being a parasite on your potential
joint venture partner’s customer base, you’d better be prepared to
compensate them for helping you to get your product to market.
If you think you are going to be able to go to one of the big dogs in your niche
and offer them a 50/50 commission split on a digitally downloadable information
product, you’re in for a rude shock.
Even giving potential JV partners 75% of the initial sale proceeds may not be
enough incentive for them to promote your product to their list.
Many novice product developers find that by giving away 90% or even 100% of the
initial sale proceeds (after processing fees) they create a compelling reason
for potential joint venture partners to help launch their product and get it
into as many hands as possible quickly.
But if you give away all the profit, what is the point?
Think long-term, not about
making a quick buck...
Good question…there are many reasons you should consider
giving the lions share of your initial product sale price to your joint venture
Here are just a few…
receive the names, email addresses and often mailing addresses of every
person on your joint venture partner’s list who buys your product. This
will give you multiple chances to offer these proven BUYERS additional,
related products for months or years to come. A list of people who have
purchased a product is the biggest asset any business owner can have, and
your list will have cost you nothing to create
will be launched and in circulation much faster than it would have been if
you had gone the traditional route and used pay per click campaigns, ezine
advertising, traffic generation programs, SEO or articles to generate leads
to sell your product to
You can ask
your list of buyers for testimonials which you can then use in your own
personal marketing to generate additional sales on which you will receive
the full sale price
exactly what new products to create as back-end offers for your list of
buyers because you’ll be able to survey them and ask for their feedback.
You’ll get a much more accurate idea of what your market wants to buy if
you ask BUYERS as opposed to prospects who haven’t purchased anything from
Many of your
purchasers will become affiliates and help you to sell even more of your
product to others. You only need to pay affiliates the going rate of 50% to
65% and all sales they make for you basically cost you nothing to generate
For these and many other reasons, it can be a very profitable decision to
give up the early profits on a product to earn long-term back end profits
from the customers you generate through your joint venture partnerships.
Something to think about…
If you would like to learn a lot more about how to go about
setting up long term, super profitable joint ventures, then Jimmy Brown and Ryan
Deiss's Niche JV goes into everything you
need to know to set up profitable JV's in any market.
It shows you how to find potential joint venture partners, how
to contact them and what to say so you don't scare them off, how to build a
mutually beneficial long-term relationship, how to split the cash...and much
For all the details, check
out Niche JV here.
You probably won't be able to sleep tonight after going through
this course. Jimmy offers heaps of great tips on setting up your own joint ventures
quickly and easily.
It doesn't matter what niche you are in, joint ventures should
be part of your marketing mix...
Anyhow, that's all for today. Until next time,
P.S. And don't forget, if you want to
move on with the next lesson, or review any of the other lessons in this
coaching course, you can by visiting