HAS Joint Venture (JV) also known as ‘business deal’, ‘Strategic alliance’Prayed ‘Strategic Partnership’. Probably the simplest definition is that a joint venture is a win-win strategic partnership between two or more companies or individuals who agree to leverage each other’s resources to achieve common economic goals. Resources can be in the form of technology, relationships, access to existing customers, experience, knowledge, credibility, employees, facilities, finances, etc.
Examples of easy, profitable and simple joint ventures
Here are just a few examples of JV deals you can negotiate:
2. Reciprocal agreements
3. Share resources
4. Promotional Alliances
5. Create profit centers for companies
Let’s look at each in more detail.
Method #1: Tollgating
Tollgating simply means finding a group of people with high enough demand and connecting them to the source of supply. He then steps between them (like a toll collector) and collects money as shoppers pass through the toll. This method is also known as “Triangulation”.
Examples of Tollgating:
1. Let’s say that in your local area, there is an Association of Architects. Let’s say they have at least 50 members and they socialize weekly. If you can persuade them to meet once a week at a specific restaurant or hotel, you can make a deal with the restaurant/hotel owner to give you a percentage of their weekly bill.
2. Another way to take toll is by finding successful businesses. There are companies that are actually turning away customers because they can’t meet the demand. Make them pass you the leads. You can then direct these leads to another company that will do all the work. You then collect commissions for each converted lead.
3. Locate someone who has a product to sell and find someone who has a list of customers who have a strong desire for the product in question. Get the listing owner to endorse the product and you will collect a commission for each sale made.
4. When a business goes out of business, make money by locating someone who is willing to: buy old inventory, buy old phone number to convert incoming calls, buy customer database, fill backorders, take over of the lease, etc.
Method #2: Reciprocal Agreements
This is an I-scratch-your-back-you-scratch-mine arrangement.
The fact is that every business has strengths and weaknesses, and many entrepreneurs don’t know how to compensate for their weaknesses, which leads to problems. But a savvy JV broker like you can address this by partnering businesses with complementary qualities so that together they are stronger and more profitable.
Examples of reciprocal agreements:
1. Bartering: A magazine may agree to a restaurant paying a month’s worth of advertising by allowing the magazine’s key staff to eat for free for a set period of time; A marketing consultant may agree to help a fitness professional generate more leads in exchange for personal training.
2. Connect two businesses with products/services that complement each other. Ask them to tap into each other’s customer base by having them continually endorse/promote each other’s products to their own customers. For example, you can organize a beauty spa to promote a health club in the future (and vice versa); or encouraging a beauty salon to “reward” its loyal customers with gift certificates from a restaurant, which could attract lifelong customers to the restaurant. In all cases, collect a commission from the resulting sales.
Method #3: Share Existing Resources
You can tap into existing resources that are underutilized and make money in the process.
Examples of shared resources:
1. You can launch the career of a jewelry designer by arranging to have your creations displayed alongside products in a fancy retail store that sells designer handbags. The jewelry designer pays no rent, but pays you and the retail store owner a commission each time he makes a sale.
2. You can build passive income by finding student renters for homeowners in your local area. You can semi-automate the process by giving a list of local accommodation to a person who works in the Admissions Office of the major universities/schools in your area and ask them to actively help applicant students find accommodation. Make sure to reward your contacts, of course.
3. Licenses: If you have (or know someone who has) a system, intellectual resources, or any non-perishable intangibles that other people are willing to pay for, you can simply grant them rights to use these resources for a small fee. . You can license a piece of software, hard-to-obtain information, a useful research result, a specialized team, etc. Bob Serling has a wealth of licensing resources.
4. Piggybacking – You can easily leverage an existing infrastructure. For example, you can insert your promotional brochure into the envelopes of a national direct mail company that already sends 100,000 letters a month to its current subscribers. Agree to give them a percentage of your earnings.
Method #4: Promotional Associations
Are you (or do you know someone who is a sales/marketing expert? You can partner with someone who has a product/service to sell but has no idea how to sell it.
1. Become an agent: You can help book speakers, bands, entertainers, performers, entertainers, etc. and earn a good commission.
2. Affiliate Marketing – You can market/sell other people’s products and earn a commission for each sale made. If you don’t want to make the sale, you can ask someone else to do it for you. You can also find companies without affiliates, set up your affiliate program, recruit the affiliates, let them handle the sales and marketing, and then simply collect a small commission.
Method #5: Create Profit Centers for Existing Businesses
It is a fact that many people who are in the business do not know how to get a steady stream of buyers on an ongoing basis.
1. Bundling – You can add a complementary product or service to an existing one with existing distribution paths and charge commissions. For example, most real estate agents can make more money and serve their clients even better if they also recommend services such as moving, interior design, plumbing, electrical, plastering, etc. to every person they sell a house to. But most real estate agents don’t know this, so you can set up this deal and make a profit.
2. Encourage restaurants to sell advertising space and earn money by finding advertisers. Restaurants can make money by displaying ads in their restrooms, on the back of their menu, on their widescreen televisions, or even on their bulletin boards.
3. Do you live in an area where there are no 24-hour dentists/restaurants/bakeries/liquor stores/entertainment centers? You can enter into a deal in which a business owner agrees to let someone else use their existing facilities during times when they are usually closed in exchange for rent money or a percentage of the profits.
4. Talk to an offline business that is clueless about online marketing. Come to an agreement where you use online marketing methods to promote the business and receive a commission on the resulting sales. You can easily make this deal with Experts and Gurus – people who have a lot of information inside their heads, but lack the knowledge of how to turn their expertise into information products and sell them online. You can act as their online publisher (or JV with an existing online publisher) and take a cut of the profits.
Being a Joint Venture broker can be very easy and rewarding if you just know how to listen to other people’s needs. To be successful, all you need to do is solve problems by leveraging existing resources and building trusted relationships. You do not need a product or business of your own. You don’t need to be an expert, you don’t need any experience, you can be 18 or 80, you can have a Ph.D. or you can be a high school dropout, it doesn’t matter.