You may be wondering how on earth a joint venture, working with the competition, could possibly be a sound business decision. Believe it or not, the logic behind that is quite sound indeed. For one, you will have a good idea on what your competitor is working on and will be able to profit, to some degree from his or her efforts. There are quite a few other reasons that you will discover though as you become involved in your first joint venture business project. The hope, is that you will learn from your first, just how valuable these ventures can be so that you will be ready to explore many more in the future.
So, what are the benefits to your business?
Reach a Wider Audience
You need exposure in order to sell a new product. Being exposed to the lists of your joint venture partners is a great way to get that increased exposure. You can also benefit from their social networking efforts, advertising efforts, and name recognition. The more widely known your partners are, the greater the odds are that your product will reach more people than you could have ever managed to expose it to based on your efforts alone.
Build Name Recognition
If your name is included as one of the product creators you will be gaining invaluable and more importantly, free, advertising to everyone who purchases the product, no matter which person in your niche they purchased the product from. What this means is that everyone who buys the product will see your name on that product. The more people who buy the product, the more people who are going to recognize your name. This is one reason it is essential to make sure that you are providing a quality product that is useful—because you want your name remembered and recognized along with a positive experience and NOT a negative experience. Failing to deliver a quality product can backfire as it will build negative name recognition.
Establishes You as an Expert Within Your Niche
Chances are that when you are dealing with email lists within a specific niche that there will be some crossover. Those who are signed up for your newsletters that may not know and trust you yet, will feel much more inclined to trust you because of your association with better known figures and faces within your niche. The creation of your product and your association with big names in your niche is a great way to build credibility and create a bigger name for yourself. Again, it is important to deliver excellent products along with excellent service or that will backfire on you.
If you are doing business on the World Wide Web, there are very few ways that a successful and positive joint venture can bring down your business or be harmful to your business. That doesn't mean it isn't possible in the worst possible circumstances. Be honest, deliver a quality product, and choose your partners carefully and you should have an amazing experience with your first joint venture. This is why joint ventures are, more often than not, good business decisions.
