You've probably heard that in some niches joint ventures are the breathe of life. Why is this? There are many reasons that joint ventures are so important in many industries and/or niches. Though you may be wondering how on earth you could benefit from working with the enemy (cough, cough competition), the simple truth is that exposure, is often worth its weight in gold. If nothing else, a well run joint venture will provide you with additional exposure and in the world of Internet marketing, any good exposure is good exposure even if it is coming from those who are your competitors.
Below are just a few of the ways that joint ventures can be so vitally important to your online business. Keep these in mind as you mull over any joint venture proposals you have received or as you consider approaching your competition for a potential joint venture. You may be surprised by some of the benefits that may or may not have been on your radar.
1)Increased sales. This one generally speaks for itself. Even when working with a competitor you can increase your sales when you engage in a joint venture—especially if you offer a product or service that is complementary to what your competitor turned joint venture partner has to offer.
2)Increased exposure. Build on your mailing list by gaining access to the customer base or mailing list of your joint venture partner (it's a good idea to begin thinking of this person as your partner rather than your competition in order to build good will and an atmosphere of cooperation).
3)Work together to create new products. If you can combine forced to create a product that will bring about big changes within your niche or revolutionize an industry you both stand to gain a lot not only financially but as far as credibility goes. Two heads are definitely better than one when it comes to the creation of new products. Be sure that you have a solid contract though and that you both understand the division of labor and profits.
4)Exposure for your product in a very narrowly defined target market. When you are working on a joint venture with someone who was once your competition it is very possible that you are marketing your product to a larger audience that is already interested in what you have to sell.
5)Inexpensive. Joint ventures allow you to share the risks, the work, the expense, and the rewards of launching a new product. This makes the a new product launch a much more affordable option and brings in bigger profits more quickly than waiting around to earn more money to invest.
As you can tell there are many rewards that can be found in joint ventures. Some you may not have anticipated. Perhaps the greatest reward though is the friendships that are built and even a healthier respect for your competitors. Do you have an idea that might be perfect for a joint venture?
