Joint Ventures or the ability to promote on a pre-existing list may be the best thing, the best tool available for you in Internet Marketing. It’s an instant way to make money, it’s usually free and it converts better than most other methods.
For example, if you have a $100 product and you promote it on a list of 10.000 people with a 25% response rate, you’ll make 2500 sales. This means 2500 x $100 which equals $250.000. From this you’ll pay an affiliate commission to the list owner (usually 75%) but this still leaves you with a healthy chunk of money for traffic you haven’t paid, campaigns you haven’t ran and work you haven’t done. It’s like your personal ATM.
However, JVs may be really easy to run but it’s hard to find someone to promote you.
About every major JV out there is done by a friend, for a friend. In other words, Eben Pagan promotes friends. Jeff Walker promotes friends. Ryan Deiss promotes friends. Every major internet marketer promotes another marketer who he knows, with which he established a connection and which he wants to help.
JVs are not simply formed by sending an email and hoping to get promoted. You don’t get money and names on your list by simply asking for it. No, it’s like receiving an investment from an angel investor and this means that you must know what you are doing and actually be liked by that person.
And as far as all those JV offers you see on sites like Warrior Forum, don’t even bother with them. A list is a very valuable asset. If you burn a list with too many offers, it becomes worthless. A list is like a flower and each time you run a JV you rip a few parts from it away. Rip too much and the flower will die.
Therefore, anyone who is willing to rip the flower empty for anyone who’s willing to promote either does not have a valuable list or the list is not very responsive and he can sacrifice it away.
A good strategy to network and prepare the table for a joint venture is this. A few months before you want to promote, approach your target. Tell him that you want to create an interview, a course, a video, a downloadable audio that he can give away to his list for free, without anything in exchange. Tell him that there won’t be any links to your website and you are doing this just to promote yourself as an expert in the field.
Do this. Create the best bonus you can find and that person will be very grateful. Keep in touch with him. Mail him or phone him at least once a week. Then after a few months (a minimum of three) tell him that you’ve created a new product and you’d like to promote it on that list since it’s something his prospects may love.
Tell him that you are going to offer a 75% commission or even the full pay (you are not losing money to do this and it’s a great way to build your list) and that this product is not competing with his own in any way.
I’d like to make a small note here. It’s very important that when you run JVs to not do it on competitors. You want to approach people who are complementary of what you’ve got to sell but never a direct competitors.
These are usually people that sell what your prospect needs before he buys your product or after. In other words, same prospect, same market but different phase of the buying process.
When it’s time to run the JV, offer to write all the emails, all the materials, all the blog post. Since building a responsive list is not easy, your JV partner will have some unique insight into what you should do and you should follow his lead.
Once the JV is done, let him run a campaign on your own list if you have any or program one for the near future so you can return the favor. JVs are always two ways.