Friendly Advice About JV Proposals...
I've been getting alot of people asking me for JV's and cross promotions lately and most of most of them really don't know how to effectively ask for one.
I thought I'd start a thread helping some of the newbies, just a list of what I look for in a JV partner, and how most people get this wrong.
The typical proposal I get usually involves some complicated idea (hair brain scheme) that has not been tested nor implemented in anyway. I get an email or PM ranting for hours about this product idea, you can tell they spent a loooong time dreaming it up, planning and taking no real action.
They then expect 50% for coming up with the idea even though they have no list, barely any traffic to their site, no test data, and in my case, no working product (most proposals I get are software related, asking me to also build the damn thing!). So they think I will build the software, test the market, put up a real sales page, sell it to my list, use my JV partners, and give them half just for a 'good idea'!
Needless to say I politely turn proposals like this down (and will now be directing them to this thread).
Now you don't have to have a big list and influence in order for me to take your idea seriously (although it certainly doesn't hurt). If you have an idea for a product, but you are relatively new with no list or site, here is how you can get my (and I imagine other Warriors) attention to your idea:
1. Put up a sales page selling you non existent product and drive traffic to it. That's right, actually spend some money testing your idea first. See how the idea converts at a low price and have an opt-in 'waiting list' form at the end. Have REAL data and a small waiting list (doesn't have to be big just enough to show this idea converts)
2. Post your idea out there and get feedback from other people, generate some buzz on places like... the warrior forum maybe? People are always blinded by their own ideas, getting honest feedback will ground you and only improve on your product. Don't be so scared that people will 'steal' your idea, that's the first sign of an inexperienced marketer.
3. Show other marketers your sales page and hype them up, get them to opt-in to an 'affiliate list'.
4. Be willing to share the cost of promotion. Graphics, ecovers, copywriting, test traffic, banner ads, e commerce, these things cost money and if I am the one who will be fronting ALL of the initial capital you can be sure I will want a bigger share in the sales.
5. Don't think your work is done just by pitching the idea, if you want half of a BUSINESS VENTURE you have to realize there is work involved.
6. Opportunity cost - The most misunderstood concept in business. Every business' resources are limited. You may have a real winner that is proven to convert however I may want to allocate available resources (especially time) to a venture that makes me more money, especially if it's something I will not be splitting with anyone. I have made more money in my life by TURNING DOWN opportunities than I have investing in them. So timing is a factor, and if your idea gets turned down, just remember it isn't always a reflection of the idea.
If someone comes to me with an idea, they tested it, it converts well, there is a small waiting list of buyers, you have positive feedback and feature suggestions from your market, some affiliate buzz out there, are willing to front a little cash for the expenses, they are willing to actually DO WORK to build the venture, AND I have the time to invest in it...
How could I or anyone else say no?
Just a few pointers.
- Reilly
I thought I'd start a thread helping some of the newbies, just a list of what I look for in a JV partner, and how most people get this wrong.
The typical proposal I get usually involves some complicated idea (hair brain scheme) that has not been tested nor implemented in anyway. I get an email or PM ranting for hours about this product idea, you can tell they spent a loooong time dreaming it up, planning and taking no real action.
They then expect 50% for coming up with the idea even though they have no list, barely any traffic to their site, no test data, and in my case, no working product (most proposals I get are software related, asking me to also build the damn thing!). So they think I will build the software, test the market, put up a real sales page, sell it to my list, use my JV partners, and give them half just for a 'good idea'!
Needless to say I politely turn proposals like this down (and will now be directing them to this thread).
Now you don't have to have a big list and influence in order for me to take your idea seriously (although it certainly doesn't hurt). If you have an idea for a product, but you are relatively new with no list or site, here is how you can get my (and I imagine other Warriors) attention to your idea:
1. Put up a sales page selling you non existent product and drive traffic to it. That's right, actually spend some money testing your idea first. See how the idea converts at a low price and have an opt-in 'waiting list' form at the end. Have REAL data and a small waiting list (doesn't have to be big just enough to show this idea converts)
2. Post your idea out there and get feedback from other people, generate some buzz on places like... the warrior forum maybe? People are always blinded by their own ideas, getting honest feedback will ground you and only improve on your product. Don't be so scared that people will 'steal' your idea, that's the first sign of an inexperienced marketer.
3. Show other marketers your sales page and hype them up, get them to opt-in to an 'affiliate list'.
4. Be willing to share the cost of promotion. Graphics, ecovers, copywriting, test traffic, banner ads, e commerce, these things cost money and if I am the one who will be fronting ALL of the initial capital you can be sure I will want a bigger share in the sales.
5. Don't think your work is done just by pitching the idea, if you want half of a BUSINESS VENTURE you have to realize there is work involved.
6. Opportunity cost - The most misunderstood concept in business. Every business' resources are limited. You may have a real winner that is proven to convert however I may want to allocate available resources (especially time) to a venture that makes me more money, especially if it's something I will not be splitting with anyone. I have made more money in my life by TURNING DOWN opportunities than I have investing in them. So timing is a factor, and if your idea gets turned down, just remember it isn't always a reflection of the idea.
If someone comes to me with an idea, they tested it, it converts well, there is a small waiting list of buyers, you have positive feedback and feature suggestions from your market, some affiliate buzz out there, are willing to front a little cash for the expenses, they are willing to actually DO WORK to build the venture, AND I have the time to invest in it...
How could I or anyone else say no?
Just a few pointers.
- Reilly