The truth is that JV marketing is mutually beneficial to both parties, but in different ways. It is important to understand the benefits a potential partner will receive from a JV partnership with you before you go out on the hunt for JV affiliates. We will show you how both the endorser and the endorsee benefit from a JV partnership.

The Endorser

This is the partner who is willing to share your information with his customers in order to help you build your business. What’s in it for him? First and foremost, money. In most cases, the endorser receives a portion of your sales to keep your name associated with his business. While it may seem like you are giving a lot to get a little at the beginning, most endorsees find that the ultimate benefits of a JV marketing partnership are well worth the costs at the beginning of the process.

Beyond the profit-sharing benefit, there are other advantages of a JV partnership to an endorser. First, they can build their own customer base by recommending related products of other businesses. This simple endorsement is much less costly than developing and marketing new products of their own, but they still reap rewards in building customer trust and loyalty. The endorser also gets the advantage of seeing whether their current customers will bite at your products, giving them an indication of the types of products their customers might like in the future.

The Endorsee

As the endorsee, there are plenty of reasons to consider a JV marketing partnership or two when you are establishing your business. First, you get to link your business name to another business that is bigger and more experienced. Those customers are more likely to take your offerings seriously because they are endorsed by a business they already know and trust. You can compete with bigger companies because you are riding the coattails of another “Big Boy” in your sector.

Another major advantage to the endorsee is traffic. While you might be able to use search engine optimization tactics effectively to drive traffic to your website, it won’t be anywhere near the amount of customers you can reach through linking to a larger business. The traffic that is generated is also high quality traffic, since the customers on your JV affiliate are more likely to be interested in your goods and services as well.

While you may already be familiar with the advantages you reap from a JV marketing partnership, your endorser gets some benefits as well. It is important to identify those benefits before you meet with a potential partner, so you can present your case from their perspective as well as your own. A good JV marketing agreement should be seen as a mutually effective approach to selling a business and building a bottom line.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

However, you may be surprised to know that new joint ventures are alive and kicking.  Companies that find the right niche and join forces can float to the top. That’s what Johnson Controls, Inc. and French battery manufacturer SAFT did. The two companies are leaders in the hybrid vehicle battery development and manufacturing. And with an eye not on the state of the economy but on a greener planet and new technology to boost the development of hybrid vehicles, they joined forces to become a leader in Hybrid Electric Vehicles (HEVs). Their new joint venture company was named Johnson Controls-Saft Advanced Power Solutions, LLC.

Case Study: Joint Ventures Flourish in Any Economy

Both companies are leaders in the technological development of HEV batteries, such as the Lithium-Ion and the Nickel-Metal-Hydride batteries. Through the joint venture, the companies will combine teams and locations in America and Europe to develop state-of-the-art manufacturing sites. The JV will also combine sales and marketing forces to reach a global HEV demand.

Already the JV has made headway in creating new jobs and manufacturing facilities in hard-hit Detroit areas. The American automobile industry has been hit hard, but Johnson Controls-Saft Advanced Power Solutions has announced that it will take over an unused 115,000 square foot plant near Holland, Michigan. The plant will undergo a retrofit for the manufacture of Lithium-Ion cells and plans to produce 15 million Lithium cells annually by 2012. The plant will create much-needed jobs in the depressed area. About 500 workers will find employment thanks to the work of the JV.

The community is excited about the announcement and is encouraged that other green-based alternative companies will follow the Johnson Controls and Saft lead to make the west Michigan a center for cutting-edge green technology.

Looking Past Today to See a Profitable Tomorrow

It is common for small and large businesses to keep a mindset of staying the course through a murky economic climate. However, it is also evident that business leaders can find ways to see through the murk and form joint venture that will thrive even in poor economic times. It is these leaders who will be the ones that grab the collars of other business survivors and become the trailblazers toward a once-again thriving economy.

Will your business be one of the trailblazers? Take a look at the products and services your business offers and the thriving technologies today. Can your business join forces with another to offer new Green products? Will you find a potential JV partner who can help develop Web 2.0 software products? Who can boost your ability to develop data protection? 

If you look carefully, you’ll find the niches that need filling, even in troubled financial times. Get hold of another trailblazer and formulate a JV that will lead your business technologies ahead of the pack.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Indeed, one of the biggest benefits of a JV is the opportunity to share contact lists and use them to expand client bases. But you should first be sure that your clients or customers are comfortable with allowing their private information to be shared, such as address, phone number, demographic data, and other potentially sensitive information. 

This could lead to big problems if a client is disgruntled about receiving unwanted mailings or contacts from a business in which he has no interest. Your own reputation as a trustworthy vendor or service provider could be tarnished. 

First, whenever you gather information about your clients, you should always ask whether it is acceptable to share their information with other business alliances or partnerships associated with your business. Always assure them that their information will never be sold. Rather, they should know that they could receive other valuable offers from your business partnerships. 

2. Committing to Long Term Without an Exit Strategy

A JV idea may seem great at the time you form it, but ultimately it may not be what the public market needs or wants, or a perceived niche may be saturated. A commitment to a joint venture should always have an exit strategy for any type of negative reaction. This means internally as well. You and your JV partner may find that your work styles are not as compatible as first thought. Or you may simply find that the JV requires too much of your time that could be devoted to your business. Be sure to always have an exit strategy agreeable to both parties.

3. Failing To Check Your JV Partner Thoroughly

One of the worst JV mistakes is to pick a JV partner who ultimately hurts your own business or reputation. For instance, your joint venture partner’s products may not be as high quality as you first thought. Your old, current and new clients may wonder why you would endorse such unworthy merchandise and leave your business as a result. 

Or in another potentially harmful situation, you find out after forming a JV that your partner is involved in a highly public lawsuit. It might be for bad products, or maybe he was involved in unethical dealings. In any case, your association with such an individual does not a shine a positive light on your business. Be sure to know without a doubt that your potential JV will be a good asset for your clients and customers.

JV formation requires proper due diligence and careful planning – just like any other business strategy. Before you commit to a JV, make sure you are not falling into one of the above mistakes, or expose you and your business to other potentially harmful residual effects. Do the due diligence and your JV will be built on the road to success.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Indeed, one of the biggest benefits of a JV is the opportunity to share contact lists and use them to expand client bases. But you should first be sure that your clients or customers are comfortable with allowing their private information to be shared, such as address, phone number, demographic data, and other potentially sensitive information. 

This could lead to big problems if a client is disgruntled about receiving unwanted mailings or contacts from a business in which he has no interest. Your own reputation as a trustworthy vendor or service provider could be tarnished. 

First, whenever you gather information about your clients, you should always ask whether it is acceptable to share their information with other business alliances or partnerships associated with your business. Always assure them that their information will never be sold. Rather, they should know that they could receive other valuable offers from your business partnerships. 

2. Committing to Long Term Without an Exit Strategy

A JV idea may seem great at the time you form it, but ultimately it may not be what the public market needs or wants, or a perceived niche may be saturated. A commitment to a joint venture should always have an exit strategy for any type of negative reaction. This means internally as well. You and your JV partner may find that your work styles are not as compatible as first thought. Or you may simply find that the JV requires too much of your time that could be devoted to your business. Be sure to always have an exit strategy agreeable to both parties.

3. Failing To Check Your JV Partner Thoroughly

One of the worst JV mistakes is to pick a JV partner who ultimately hurts your own business or reputation. For instance, your joint venture partner’s products may not be as high quality as you first thought. Your old, current and new clients may wonder why you would endorse such unworthy merchandise and leave your business as a result. 

Or in another potentially harmful situation, you find out after forming a JV that your partner is involved in a highly public lawsuit. It might be for bad products, or maybe he was involved in unethical dealings. In any case, your association with such an individual does not a shine a positive light on your business. Be sure to know without a doubt that your potential JV will be a good asset for your clients and customers.

JV formation requires proper due diligence and careful planning – just like any other business strategy. Before you commit to a JV, make sure you are not falling into one of the above mistakes, or expose you and your business to other potentially harmful residual effects. Do the due diligence and your JV will be built on the road to success.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

A JV does not have to take you and your time away from your business. In fact, a strategic JV that merely shares resources can push your small business to a whole new level. Take, for instance, Dan Kennedy. Kennedy is an extremely successful copywriter, seminar producer, and entrepreneur who has started or acquired numerous small businesses and turned them into huge and profitable ones. 

Kennedy knows the power and potential of a strategic alliance and a JV that can benefit his own growing business. His seminar and speaking business was taking off with more and more bookings every month. He knew that travel arrangements would be frequent, and he needed an ally that could potentially help him save money on travel fees and make the best possible arrangements. He found that ally in a friend who started his own small travel agency. 

Through a successful JV partnership, the travel agency owner received the guarantee of Kennedy’s own business arrangements, as well as that of his clients and others who needed to arrange to be at his seminars. In return, Kennedy received the use of the agency’s staff who would answer calls and make all hotel and airline arrangements for his seminar business. Kennedy’s clients enjoyed enhanced service from the agency and freed up his time to focus on other money-making opportunities. The travel agency got a plethora of customers and commissions without any marketing costs. Indeed, the joint venture created a win-win situation for both businesses.

Maximizing the Potential of Your Business through a JV

This is a small example of how sharing resources with a JV agreement can help both parties come out ahead with their own business goals. But you have to think creatively to get the benefit of the right JV partner. You may want to find a business that can help you with bookkeeping, or maybe even share a delivery truck. Think of what you need most to make your small business grow bigger. Then look around your community for another business with the resources you need to reach your goals. Determine how you can benefit that business as well and approach the owner with a proposal for a JV. The worst that could happen is that you’ll get turned down, but on the flip side, you may find a JV partner who needs your help as well.

Get in on the JV action and find multiple ways you can get ahead with your business through strategic alliances. If you don’t, you may have to be satisfied with keeping your business small.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.