2.Recommendations by affiliates and/or JV partners

3.Advertising at no cost (affiliate or JV Partner took on advertising risks)

4.More sales

5.Ability to "up-sell" or cross-promote other products at the back-end of the order process

6.Increased customer list (for life) to sell future products - keeping all the proceeds

For all of this, costs (commissions, credit card processing fees, etc.) were only incurred when a sale was made, so the benefactor is able to pay any costs directly from the proceeds - funding almost nothing up front. Once the product is developed, the entire promotion is free, or at least funded by sales.

If that doesn't make you want to go out and create your own product, or buy resale rights to a very limited product - it should.

Now let's review the benefits that the endorser will realize:

1.A percentage of the profits

2.Early promotion rights

3.Enhanced image with customers, subscribers, etc. (making a variety of quality products available over time keeps them interested in your offers)

4.Ability to constantly test your lists' responsiveness and gauge their interests (so you know what to target them with in the future)

With the exception of developing a responsive list, being the endorser is the low cost, little effort, means of starting an internet based business.

Both parties win ... but just to make sure you understand, neither side gets off scott free, either.

The benefactor has:

1.product development effort and costs

2.copywriting effort/costs

3.web hosting costs

4.order fulfillment costs (shipping, credit card processing fees, etc)

5.customer support costs, and

6.endorsers to pay.

The endorser has marketing responsibility (and will benefit in direct proportion to their ability and willingness to promote the product or service). This includes promoting to their lists (no cost), but may also include paid advertising.

Product Endorsement - a Variation

OK. After that review, you'll be able to appreciate this next example a little better.

I wanted to cover this here - before getting into other types of Joint Ventures, because the Product Endorsement example will still be fresh in your mind - and to illustrate that a little imagination/creativity can create an entirely new "flavor" of Joint Venture.

Let's assume for this example that you have an existing product, with an affiliate program in place. Sales have slowed, affiliates have been distracted by other merchants' products and have lost focus on your offering. In this example, we are going to breathe some new life into the existing product by launching a new marketing campaign.

We are first going to find a new group of promoters, and approach them very much like we were doing a Product Launch. We want to pick the very best promoters we can find, but we have an uphill struggle to win them over because there will be a perception that the market has already been played out by our existing affiliates.

To combat that perception, we will need to:

1.make larger concessions in the form of an even higher commission rate

2.enhance the product by packaging it with another product/products

3.give an exclusive discount to the promoter's list, or all of the above

Your intent is to eke out as many more sales as you can by enlisting the aid of the best promoters you can find, making the offer as attractive to them as possible, and giving them an opportunity to be heroes to their list by giving their customers an exclusive discount or a "package deal".

Remember, the alternative is few or no more sales.

The biggest difference between this scenario and the Product Endorsement example is your willingness to sacrifice even more profitability per sale, in order to boost total sales.

I told you finding willing partners in this scenario would be an uphill struggle. There is one major exception to this, and it is important!

This is a twist that I am really fond of. Remember you already have an affiliate program in place. Is there any reason you couldn't do a Joint Venture deal with your best performers?

Pick just a handful of your best affiliates. Include them in an offer based on some combination of the above additional concessions. You will meet with less resistance because:

1.they've been successful selling your product in the past

2.their lists have grown/changed since they first promoted your product

3.you are giving them some additional incentive they can pass on to their lists (discount, bonus product, etc.)

By rewarding your best affiliates with an opportunity to "eke out" additional profits from a product they have endorsed in the past, you will strengthen the relationship with those affiliates and have a ready made list to approach when you get ready to launch your next Joint Venture.

Regardless of whether you have searched for a whole new list of promoters to make your offer to, or used your best- performing affiliates, or both , a little creativity has totally changed the nature of the original Product Endorsement example.

So, the basic workings are essentially the same - one benefactor, multiple promoters - same responsibilities in each role - same general set of benefits in each role, but...

Do you see now why every Joint Venture agreement is unique? And how a little creativity will allow you to create a proposal that is just a little better than the next guy's?

Article #3...

It's really easy to get wrapped up in the subject from the "benefactor's" point of view, so I'll specifically address the "endorser" (probably the larger segment of the audience) with some how-to's and caveats. Just a real laid-back, frank discussion.

Until then,

To your success!

Russ

Russ Shearer - matching Joint Venture benefactors and endorsers, the Founder of Rush2Profit.com teaching multiple income stream generation.
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