3 Risks Of Joint Ventures
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In the world of joint ventures, not everything is all sweet. Before you launch your first deal, there are some things that you must consider if you want to consider doing business within your niche, and with your JV partner. And this should make sense to you. When launching your joint venture, it's important that your email and website campaign works, so that you can repeat the process with successive joint ventures.
I want to share with you some of the risks that are apart of the joint venture game that you may not know about. All of these risks are things that you face whenever you're about to embark on a JV campaign. In fact, let's take a look at the first risk that you face when doing joint venture marketing.
1) You risk your reputation
This is definitely number 1. If the JV flops, your partner won't do another deal with you. If you get alot of sales but also get a ton of refunds because the product isn't stellar, you have a problem on your hands. It's nice to get alot of sales, but if 50% of the product that you send out comes back with the request of a refund, you have a problem on your hands.
To avoid this, always promote high quality products. You should first market the product to your list and get testimonials so that other people will have confidence that your product can deliver on its promises. Products that don't deliver get the boot, and your JV partner just might give you the boot also. Here's something else you risk:
2) Possibility of limited income
If you get sales but they aren't at a level as to which you and your partner where hoping for, your partner may disagree to another attempt. You have to understand that your potential partners are busy people, and if they don't see large profits that you were set out to get, they may just call the deal quits.
But you can't let this happen. This is why you need a strong sales letter, and a price that is justifiable. One thing you have to worry about is whether or not your price is right. If you're trying to sell a $400 product, and you've never gotten sales from it before, what makes you think that your potential partner's list will cause you to get your initial sales also? Because they will want to see proof that it's selling really well.
Here's the last thing you risk:
3) Commission percentage
Sometimes you may have to shell out alot of the profits with your joint venture partner. This alone could make the deal not worth it, but it all depends on the figure. If you have an affiliate program and you're offer 50% for each sale... offer your JV partner 60% on each sale.
I think this is a good number. You don't want to give away all of the profits so that you're only left with mediocre profits. The point of a joint venture is to make money, not to give it all away. So consider reason number 3 the next time you quote a JV commission figure.
These 3 risks are things that you need to deal with before you start hunting for joint venture partners. The more you consider these risks, the better your decision will be when it comes time to actually implement the JV.
Good luck with using these tips to make more money in your internet business today.
ABOUT THE AUTHOR: Randall Magwood is one of the most respected and highly-regarded online marketing experts on the internet. He has a website about internet marketing that helps small business owners learn how to market their business online simply and easily. To learn more, visit here: Free Internet Marketing Book.
I want to share with you some of the risks that are apart of the joint venture game that you may not know about. All of these risks are things that you face whenever you're about to embark on a JV campaign. In fact, let's take a look at the first risk that you face when doing joint venture marketing.
1) You risk your reputation
This is definitely number 1. If the JV flops, your partner won't do another deal with you. If you get alot of sales but also get a ton of refunds because the product isn't stellar, you have a problem on your hands. It's nice to get alot of sales, but if 50% of the product that you send out comes back with the request of a refund, you have a problem on your hands.
To avoid this, always promote high quality products. You should first market the product to your list and get testimonials so that other people will have confidence that your product can deliver on its promises. Products that don't deliver get the boot, and your JV partner just might give you the boot also. Here's something else you risk:
2) Possibility of limited income
If you get sales but they aren't at a level as to which you and your partner where hoping for, your partner may disagree to another attempt. You have to understand that your potential partners are busy people, and if they don't see large profits that you were set out to get, they may just call the deal quits.
But you can't let this happen. This is why you need a strong sales letter, and a price that is justifiable. One thing you have to worry about is whether or not your price is right. If you're trying to sell a $400 product, and you've never gotten sales from it before, what makes you think that your potential partner's list will cause you to get your initial sales also? Because they will want to see proof that it's selling really well.
Here's the last thing you risk:
3) Commission percentage
Sometimes you may have to shell out alot of the profits with your joint venture partner. This alone could make the deal not worth it, but it all depends on the figure. If you have an affiliate program and you're offer 50% for each sale... offer your JV partner 60% on each sale.
I think this is a good number. You don't want to give away all of the profits so that you're only left with mediocre profits. The point of a joint venture is to make money, not to give it all away. So consider reason number 3 the next time you quote a JV commission figure.
These 3 risks are things that you need to deal with before you start hunting for joint venture partners. The more you consider these risks, the better your decision will be when it comes time to actually implement the JV.
Good luck with using these tips to make more money in your internet business today.
ABOUT THE AUTHOR: Randall Magwood is one of the most respected and highly-regarded online marketing experts on the internet. He has a website about internet marketing that helps small business owners learn how to market their business online simply and easily. To learn more, visit here: Free Internet Marketing Book.