Today I am going to explore a highly effective marketing strategy that probably only one in a hundred companies actually employs.
It allows you to tap into a virtually limitless supply of targeted prospects. What’s more this potential new customers or clients cost very little and sometimes nothing to access.
Just as important these potential customers comes ready warmed up to listen to your sales messages. This may sound like some kind of panacea, but it is actually perfectly true and I’m going to explain why.
How To Use Joint Ventures To Quickly Grow Your Prospect List And Create Additional Sales Much Faster Than Conventional Marketing Techniques
Joint Ventures (JVs) are rightly recognised as probably the cheapest and quickest way to acquire new customers.
But JVs are over-looked by many businesses, probably because they demand some thought and organisation. When you consider how successful a good joint venture can be it is well worth the time.
The success of a joint venture is based on the fact that the existing customers of your chosen ‘host’ company are far more likely to respond to your offer when it comes from your host (someone they know) than if you sent the offer directly to them.
A good response to an offer sent to a ‘cold’ list would be in the order of 0.5% whereas this response can rise to 10% – 20% if you make it through a company that they know and trust.
So Why Would a Host Company Want To Enter Into A JV With You?
The host company will be seen by their customers as having organised the special opportunity or deal and made it available to them. This adds value to the relationship, and creates goodwill and loyalty. The host company will also be benefit from a commission on every sale made. It is in both parties interest therefore to ensure that the offer is unique and attractive.
A good joint venture will create a win : win situation for both parties involved.
So What Are The First Steps To Setting Up An Effective Joint Venture?
- Identify Some Common Customers
As the basis of a joint venture is to offer a complimentary product or service to another company’s customers, the partner company needs to have customers with a similar demographic or business profile to your own. For example, customers of an up-market ladies hair salon and the clients of a beauty salon. Or clients of an IT services company and a telecoms company. Or a home improvements company and a landscape gardener or lawn-care company etc. etc.
- Work out an Exclusive Offer
Work out an advantageous offer for a product or service that you could make available to the other company’s customers. Then agree the financial benefits to both sides.
- Draw Up a List of Potential Joint Venture Businesses
It is far easier to start with businesses you already know.
Here are some examples of companies that would be suitable to do a joint venture together:
Decorating or Home Maintenance Company: DIY Retail Stores
Men’s Clothing: Dry Cleaning or Barber
Computer Maintenance: Stationery Supplies
How To Approach Your Potential Joint Venture Partner
Be prepared to go to them with a written explanation of your offer, including any vouchers, leaflets and letters to be used, with clear examples of the benefits the ‘Host’ company will gain.
Many large companies use joint ventures to multiply their sales by creatively partnering with other companies. We have done several joint ventures with some of our clients which have allowed them to offer their customers marketing help and advice. Amazon is a company that does JVs very successfully.
Below are two examples of a joint venture offer from Vista Print to Amazon customers. These leaflets were sent with the Amazon delivery.
The first is offering Amazon customers a Christmas calendar for just 99p rather than the usual price of £9.99
The second is for 250 free business cards
Members of our Marketing Mastermind Club have recently had access to a detailed webinar, all about how to create and run highly profitable Joint Ventures.
The webinar revealed:
- How to put together your own JV proposals without the typical “resistance” that you might expect
- What to do if you just feel “uncomfortable” about approaching other businesses…
- How to structure a Joint Venture so that everybody wins, and sees maximum returns for their effort
- Why companies actively welcome Joint Venture approaches, and the best step-by-step approach to take
- More examples of successful Joint Ventures
This webinar has inspired many of the Marketing Mastermind Club members to set up their first joint venture. And as members of the Club they have been entitled to help and guidance from one of my team to help them set it up.
If this information has inspired you to look at setting up a joint venture, and you would like access to the webinar, the report that accompanies it, and personal help from one of my team, I recommend that you take advantage of the present Marketing Mastermind Club trial offer.
Join the club for one month for just £9.95 + Vat. This will give you immediate access to the Joint Venture webinar, the report and all the other benefits members enjoy.
Call Sally on 01692 538800 or email Sally@common-sense-marketing.com to arrange your trial, or click here to join up online and get immediate access.
(The Joint Venture webinar can be found in the Marketing Strategies section).
For more free advice and downloadable reports on all aspects of direct response marketing go to www.common-sense-marketing.com