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How to Make A Million Dollars with Joint Ventures
#1
There Are 4 Reasons Why You Should Read This Like Your Dreams In Life Depend On It:

1. It works! Surprise, surprise, but remember it only works when you follow the system there is no room for reinventing the wheel just yet. You can get “fancy” once you have cracked you first million.
2. It’s simple. Let me be vulnerable for a moment and tell you a bit about my personal weaknesses. I’m lazy, very lazy in fact and with that comes the gift of being able to make hard things very easy by breaking things down into bite sized pieces and removing the ones that don’t work or make any sense. I remove 80% of the work and only do 20% of anything and that 20% is the heart and soul of any strategy without all the time and page filler.
3. You could make a million dollars with this one method. I had one client go from $400,000 to over $5 Million in 18 months and the main driver was JV’s. Need I say more? What I am going to show you here is the single most powerful strategy I know for making money fast in business.
4. I have made all the mistakes for you so you don’t have to. I have done it all (well most of it anyways) and have made so many mistakes it would make your head spin.
I once stuffed up so bad I lost over $30,000 on a method that wasn’t executed properly. And do you know what happened? I never made that mistake again. And neither will you thanks to me making them for you. Let me take the guess work out of it with what you have in front of you right now.

The 8 Organising Principles for Creating a Powerful and Profitable JV

1. Identify your target market – who are your customers?
2. Identify other interests your target market might have – commercially, socially, spiritually, sporting, recreation, leisure. What else do
they do and where else do they spend their money?
3. Identify other businesses that have already captured the market you’re targeting – *hint* the answers to the info above is the key.
4. Create a compelling and irresistible offer that will be enticing and exciting enough to generate enough interest in the prospective partner that will get them to sit down with you. Don’t go for everything all at once start with a meeting nothing more.
5. Make it Win–Win. Work out an arrangement that will be
mutually beneficial to everyone involved. This is called a win-win and it is crucial you know how to position your prospective partner’s potential win out of the relationship.
6. Identify all the actionable steps on each side. Keep them to a minimum and keep them very simple. Simple gets done.
7. Set a deadline to get it implemented. It should be no longer than 2 weeks otherwise you have over an 80% chance that the JV deal will fall over.
8. Get an endorsement from the JV partner if possible***. Make them a customer by offering free products or services and take the time to make sure they “Love” what you do or at the least “like” it.

People are motivated basically 2 ways:

1. Emotionally. This is what pulls them in, gets them high on chemicals from the brain based on the fantasy or the reality of “how” a product, service or JV will give them something that they don’t have. Fill a void, fix a problem or provide a solution.
2. Logically. This is the “reason” we use to justify the emotional response “to make sense” of the decision we are about to make. This is where we present our brain with a range of perceived facts about why we should give in to our emotions.

So with that come 3 positions for your product, service and ultimately your JV.

1. The emotional position. This is for the emotional Driven decision makers. They are all emotionally driven when it comes to making a decision. These are the creative people, the right brainers as they are called and they are normally found in creative fields such as art, marketing, sales , hair and beauty just to name a few - you get the idea. They value ideas, dreams, fantasies and pictures.
2. The logical Position. This is for the other extreme. The people who are driven by logic and facts when it comes to making a decision. They are normally found in accounting, engineering, administration and sometimes finance. These people value structure and process driven, left brain dominated people.
3. The Balanced Position. This is to try and capture all of the above and more. This gives you the best of both worlds and will often set you apart from the rest because you answer both sides of the equation questions – does it feel right and does it make sense? Now this is by no means an extensive breakdown of how to position products and services for the whole range of human personalities that are out there (otherwise I would be here for another 300 pages). This is the basics and a good place to start to recognise what we are dealing with.

So what’s a Joint Venture all about?

In a nutshell, a JV is nothing more than 2 businesses who share a common market place (customer) coming together and having each other promote the others business via a third party endorsement for mutual benefit.
Now to keep it simple a JV can be structured 2 ways.

1. Profit share. Where the businesses share the profits they make from promoting the others business to their customer base. If you’re sharing the cost and all of the work load then 50/50 is a good deal. However, if it involves more work on your side in some cases you can negotiate 10-20% of profit to go to your partner and you keep the balance. Remember this is net profit share not net revenue share. Make sure you take the cost of sale out of it.
This can be hard to track, however online it can be done easily with tracking links.
2. Mutual benefit. Where you both agree that the mutual benefit of having each other promote and endorse each others business is sufficient reward. They keep the money they make from your customers and you keep the money you make from theirs. This keeps it nice and simple and there is less work for everyone involved.

Disney and McDonald’s

When Disney started doing more movies they had a problem. They needed more customers to come to see their animated films. So the marketing department sat down and more than likely asked a similar series of questions to below.

Who are our best customers? (The answer was an obvious one – Kids.) Who else is involved in the decision making process? (parents)

Who else shares our market, has captured our market but doesn’t compete with our product but in fact can compliment our product? (McDonalds!!!)

I am sure most of us at some point have eaten at McDonald’s. And for those of us with kids we would know very well what a “Happy Meal” is. And most of us would know that whenever Disney brings out a new movie the little figurines (the trigger) from the movie are sold in the Happy Meals from McDonald’s along with a voucher for adults at kids prices or a two for one deal (the compelling offer).

Now when the child had a nice little figurine in their hand there is a great chance that their little creative minds are going to be in overdrive imagining how wonderful the movie would be and as a result they have a constant trigger (the figurine) about a product (the movie) that is being played with continuously. The kiddie plays with the figurine non stop and as a result he thinks about seeing the movie (buying the product) non-stop
The result is generally quite predictable, the child asks or in many cases “kicks and screams” (the compelling emotional reason) until the parents finally give in out of love or the desire to restore peace to the household. The parents often take the child to see the movie and they justify themselves giving in to the fact that “well we have a voucher (the compelling logical reason) anyway, be a shame to waste it or lose the opportunity”.

And with that you now have the whole family packed up to go and see the new Disney movie. Success for Disney as they have used someone else’s framework and infrastructure to get their product into the hearts, minds and marketplace of their target audience.

It doesn’t end there; the parents go to the movies with the kids (because the parents always go with most kids in the age bracket that buy happy meals, giving Disney a much greater return) and when the parents actually hand over the voucher to receive their discount what happens next? The people at the movies hand over another voucher for the kids to receive 50 cent cheese burgers and the cycle is repeated.

So in essence these two companies who were not in direct competition with each other, and have the same target market. And they both tapped into the billions of dollars in invested advertising capital already invested by the other partner without spending a fraction of that to do so. The result was a significant increase in both bottom lines and a relationship that has lasted well over a decade or more.

Steps to Creating a Powerful and Profitable JV

1. Identify your target market
2. Identify other interests your target market might have
3. Identify other businesses that have already captured the market you’re targeting
4. Create a compelling offer that will be enticing and exciting enough to generate enough interest in the prospective partner that will get them to sit down with you (do this through either a phone call or a letter and or both)
5. Sell the benefits of the arrangements to the JV partner, focusing on what they will get out of it NOT you and be open with how you will benefit so they know up front.
6. Work out an arrangement that will be mutually beneficial to everyone involved.
7. Set a deadline to get it implemented
8. Get an endorsement from the JV partner if possible***

The Goal of Your Joint Venture

There are 4 things above everything else that you want to achieve. You want to:

1. Access to another persons data base/ customer base
2. The ability to Capture the basic personal info of the people who respond to your offer to grow
your marketable asset (your data base)
3. Build relationship that can be fostered with another complimentary business.
4. Sales. (Notice how this comes last?)

Sales comes last because if you focus purely on sales and sacrifice the first 3 goals and end up with no sales what do you have left? Nothing!

However if you get access, capture data (for future marketing, and foster a great relationship and end up getting no sales the first time guess what? You try again with a different angle and you can do this because you have achieved all your other goals.

At the end of the day you want to have access to their customers or data, which is their customers recorded details. I am a very big fan of using data as it allows you to email or mail personally the people that you are trying to target. And when you can target them personally you have a much greater chance of success with whatever offer you are making.

Having an endorsement can have a huge impact on the level of response as long as the person endorsing it has looked after their customers well.

The 8 steps to make it happen

Step 1. The approach
Make a list of at least 20-59 potential businesses; you can create your list from the yellow pages or even your local and major newspapers. Make sure firstly you approach a business based on your profiling exercise (who are your customers and what other interests do they have etc.). You must make sure your approach is clear and appealing. The best form of approach is

1. Aletterfollowedby
2. A phone call and repeated until you have got
3. Anappointmenttositdownforafriendlychat.

It is even worth offering a free service to get them in.

Step 2. The offer
Remember it is not about what’s in it for you it’s about what’s in it for them and their customers. Never try to explain to a prospective JV partner what you want to do over the phone. A JV is a product just like any other hard goods or services that must be sold using a sales process and is best done face to face.
 
Step 3. The deal
Make sure the deal is clear & mutually beneficial in all areas. Who does what and who gets what? Be transparent and open with your margins and generally they will be too. Think the whole scenario through from start to finish and make sure you have all the bases covered on the first go to avoid any unhappy JV partners or unhappy JV partner clients.
You do not want to accidentally burn anyone’s customers. In some cases if your offer and deal is appealing enough they will even pay for the promo.

Step 4. The medium
The best medium is to have a letter sent (a letter is best however you can also email or fax) from your JV partner to his clients describing your offer, endorsing it and telling them what you do. Make sure the letter is written in the A.I.D.A (follow the copywriting principles of selling with words) format!

Step 5. The endorsement
An endorsement can increase your response rate by over 300%. Make sure they have actually used your products or services and give an honest appraisal. An endorsement can be worth thousands of dollars in profit so don’t overlook getting one even if you have to offer FREE services to your JV partner.

Step 6. The action
Set out a Joint Venture action plan with your JV partner outlining what has to be done and when. Assign tasks and dates to be completed and make sure you have a follow up procedure to manage it from start to finish. This is where you make it or break it. You must follow through and get it done.

Step 7. The result
It’s all about testing and measuring. What happened? Where can we improve? When can we do it again?

Step 8. What next?
Repeat & keep looking for new JV partners based on your profiling

IDEAS:

Restaurants, News Agencies, Clothing, Stores, Photo, Shops, Gymnasiums, Nail, Technicians, Masseuses, Accountants, Solicitors, Printers Advertising Companies, Real Estate Agents Car, Dealerships, Naturopaths, Mechanics, Florists

Here Are A Few Joint Venture Examples

Hairdresser & Accountant

A hairdresser approached a well-known accountant in her local area and asked him if he enjoyed a quality service when it came to receiving a haircut. The accountant of course agreed that he did. She then offered for him to come down for a full service treatment of a wash, cut, blow dry and even said she would trim up his beard for him and she said she would do this at absolutely no cost what so ever. It was valued at $45.

He was interested but being an accountant was also curious and asked what the catch was.

She then informed him that there was a catch and the catch was if he absolutely and thoroughly enjoyed the experience she wanted to give him 100 of these services to give to his best clients for FREE.
(Bearing in mind that his best clients had more than most when it came to disposable income and the hairdresser knew this)

In fact she said she would like for him to be able to give them away and even create the “impression” that he bought it as a gift for his clients.

She followed up by asking; “When was the last time you did something special for your best clients?” The answer was “never!” She then asked “do you think you would look like a good guy in the eyes of your clients if you did this for them?” The answer was obvious.

Here was the cruncher she then asked; “do you think your clients would be more likely to talk about you to their friends if you did this, giving you the opportunity to create more business through word of mouth?” He booked in for his treatment on the spot to see where this was going.

When the accountant went in he was treated to a level of service he was not used to; a glass of champagne on arrival with fresh strawberries and a hand made chocolate, he was then given a 5 minute head, neck and shoulder massage before being given all of the services he was promised and not begrudgingly.

All were done by happy, helpful and friendly staff, that were only too happy to give him what he wanted, which was great service with a smile.

The result was obvious, he was only too happy to agree to give 100 of his best clients this gift for FREE. And the salon owner was thrilled she immediately was referred 100 high net worth people who all were referred to her business with a huge endorsement from their personal accountant who they obviously liked and trusted. The salon owner knew two things.

Firstly, that her lifetime value of a client was approx $5000 over 5 years. Secondly, she had a client retention rate of over 60% on average.

The result was astounding, she ended up having 64 people come in for their free service the first time the offer was made and from that she retained over 65% which was 42 people that had a combined 5 year lifetime value of $210,000.00 and that is if they refer no one else to her.

The accountant was so happy that he paid for the printing of the letter, stamps and even got his secretary to stuff the envelopes and post them. It cost my client $0 upfront to market and she spent $1142.00 to provide the free service which was recouped within 2 months of the promotion from repeat business she generated.

The result was two very happy people in business. The promo was run twice more and the hairdresser even did the same thing for the accountant by mailing her customers with a free offer that generated more business for him also.

This example above can be CHANGED to represent nearly any sort of business there is. The only thing that stops people is asking the right questions.

Newsagents and Lawnmowers

Who would have seen the connection? A newsagent approaches a lawnmower retailer and proposes a Joint Venture where they can mutually promote one and other to their clients in a unique way.

The newsagent approaches the mower man and asked him a few good quality questions; “how many people do you get through your doors and of that how many do you convert into business?” To which the response was not enough on both counts. With that the agent asked the mower man; “how would you like to get exposure to an additional 5,000 people a week?” Obvious answer!

The newsagent proposed the mower man put a display in the agents shop so that 5,000 of his customers every week for a month would get exposed to the mowing mans business he said he would also give away vouchers that offered a free 6 point safety check on all mowers to every customer (put in their carry bag) that made a purchase.

The condition was that the agent could give away the display at the end of it to one lucky customer who went in the draw by purchasing $10.00 or more worth of products from his agency and every additional $10 spent gave another chance to win.

The result was significant the mower man gave the agent a $5,000+ display (his actual costs were 50% less for wholesale and he even go the mower supplier to subsidise it as he was promoting their brand of mower – smart!) and agent increased his average dollar sale immediately by every person who purchased something being told; “did you know if you spend just 3 dollars more (or what ever the figure was to bring it to $10) you will go into the draw to win this display” (which they pointed out right there, which was a very powerful visual tool) this increased the average number of transactions as everyone wanted to buy everything from him to get the chance to win the $5,000 + display and so came back more often.

There was an explosion in sales within days.

The lawnmower man was a happy camper. He sold more than 3 times what he would have sold from people who had seen the display and came in to buy it and he also got plenty of mechanical work that led to up sells to new products and other add on pieces.

This promotion cost the agent who set it up $0 and the Mower man more than tripled his investment from the display giveaway.

Everybody made money!

There is no limit to the ability to set up JV’s with any number of businesses all it takes is the right questions and the right approach.

Whenever you set up a JV it really comes down to being able to “sell” someone on the idea that what you are offering will help them either make money or raise their profile. It is all in the right approach the following are a few examples of letters that have been constructed for setting up a JV.

Use your imagination to make it suit your business and refer to the A.I.D.A for basic rules of thumb.

It’s That Easy Start Now!

So now you have seen the style of approach needed to set up a joint venture. Now, if you happen to be a very good communicator you may not even need to use the first letter that is if you can get on to and talk to the prospective partner and talk to them directly with clarity and confidence. For most a first letter is a great place to start.

In any case it is always best to follow up any letter sent either to your JV partner or JV partners’ clients with a phone call wherever possible as this ALWAYS will increase the result of both stages of the venture dramatically
If joint ventures are set up well they will allow you to access, in some cases, millions of dollars of other businesses invested capital for as little as $0. Not a bad price to pay considering what some owners pay for the setting up, running, marketing and other ongoing costs to create the database that you can get access to.

Write down now a prospective list of potential Joint Venture Partners that you can implement an approach with immediately (either people you know or from the Yellow Pages)
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#2
You don't just make millions with joint venture, you make a million-dollar-relationship instead.

If both company cannot create synergy, there will no longer be any use of the JV
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#3
Ask yourself if you are able to partner with your competitors first.
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