Give Your Joint-Venture Offer An Extra Punch

The other day I was asked, “How do I motivate a potential joint venture partner to bite? When you have a great idea and you’ve located the perfect partner, how do you motivate them to do business with you?”

In my last post, I talked about the power of a USP and how to define one. Being unique, or having an interesting twist or hook, will definitely up your chances of getting noticed.

But regardless of how you approach your prospective partner, whether it’s through an email, fax, or phone call, or by snail mail or FedEx, it is important to craft the offer in a manner that shows the benefits to your joint-venture partner.

However, there are a few extra tricks to motivate a potential partner.

Here are some of them…

More often than not, showing your prospective partner how their clients or prospects will benefit from your offering is a big step forward.

Look at all the potential benefits your partnership provides. Don’t stick with the obvious. Dig deep, and list all the advantages they get from doing this venture.

At the very least, and aside from the extra money they earn, if you can show your partner how your offering will benefit their prospects and make your partner look good, you have a headstart.

But don’t stop there.

Think about it: if your partnership will make your partner look good, what will that translate into?

More money? Sure.

But it can also translate into more sales of their own products. More publicity and visibility in the marketplace. More word-of-mouth advertising. More brand equity and trust from their people. New distribution channels to exploit. New markets to enter. New or increased opt-in lists. Different testing possibilities. And so on.

Personally, I hate it when a potential joint-venture partner approaches me, only to offer me a portion of the sales. This is typical of most commission-based affiliate sales, and is by no means a joint-venture partnership at all.

A joint venture is a joint venture.

(I particularly hate it when they also ask me to contribute to the product — such as providing some if not most of the content — or any of my products as bonuses. Why would I pay a JV partner a percentage of my own sales or intellectual property? It’s nonsense.)

Again, there’s got to be something different. Something extra. Something else that makes this a truly viable and worthwhile investment of your partner’s time, marketing, and intellectual property.

Bundling products or offers is an effective strategy. If the JV’s product is a non-competing one, complements your product, and fits your market too, then it can be bundled with yours to create an entirely new and separate offering.

If you have a list that can benefit your partner and if your partner has a list you can promote to, or if you can build a new one together that you both can share ownership, that’s another added benefit.

But let’s say there isn’t anything else.

Let’s say you have created a truly exceptional product that would greatly benefit your partner’s people. And let’s assume you’re looking to leverage profits from your product off of a joint-venture partner’s opt-in list.

First off, you need to have sales materials ready and tested to prove that:

Your product is in demand.
Your product is already selling.
Your product is selling well.

In this case, you can send your potential partner a letter or FedEx package, and you offer to give them 50% of the sales, and include a sample of your product and your proven, high-converting sales letter, if possible.

(Unless you have an existing relationship with your prospective join-venture partner, try to avoid email if you can. In fact, other than snail mail, picking up the phone and calling them directly often gives the best results.)

Again, point out the benefits. Their list will appreciate the valuable product they’re offering, and they will appreciate your partner for thinking of them, too.

But do your homework first!

Do you know and understand their market? Is your product a perfect fit? Is your market a perfect fit for their product(s), too? How many people do they actually have on their lists?

If you can discover how many people are on that person’s list, you can provide them with a little math ahead of time.

For example, let’s say you know that their list consists of 5,000 people. Based on a sales letter with tested conversion rate of 3% and an average open-rate of 40%, you can speculate that your partner will gross about $3,000 in profits on your $50 product by doing just one mailout.

But again, this is a seemingly typical offer any affiliate or commission-based promotion can make. So amplify the offer to increase your likelihood of receiving a “yes.” Make it a little higher than normal, if you can.

And if you do make an offer of a higher commission rate, don’t bury this fact! Make it stand out.

For example, put the higher commission rate in the forefront and tell them that it is higher than normal. In other words, give them the goods right away. It makes it look special and doesn’t drown the JV offer in a bunch of historical platitudes, or patronizing, hype-filled diatribe that’s only going to result in a few yawns.

But don’t stop there, either.

Point out, in no uncertain terms, that you’re making this offer to them and them only. And point out that you’re making this offer available only through this special partnership.

Yes, I highly recommend you do offer something extra-special or exclusive. (Remember, you’re looking for a joint-venture partner, not just an affiliate.)

If not, tell them you’re making this offer only to a very select group of people. But also, make sure to list all the facts and reasons why their promotions won’t get drowned in a sea of competing, promotional messages.

Nevertheless, say something like:

“Since I’m confident your people will love this product (and they will love you more for offering this to them), I want to reward you specifically by paying you 50% [rather than my standard 25% commission rate for affiliates]…”

Here’s an extra tip.

(This single tip is one of the most effective ways we use to gain partners.)

If you want your JV offer to stand out a bit more, then offer a bit more, too — such as 55% rather than the typical 50%.

It’s true: when people are offered 55% in special JV deals, it pulls more than 50%. Why? Because 50% is such a round, arbitrary number, where odd numbers like 55% sound “special.” (We’ve tested this by offering 51% and 53% in JV deals, and they did better than 50%.)

Another reason it works so well is that it makes the JV prospect feel as if they’re getting the better end of the deal. They are making more money than you are.

It’s all about lifetime customer value. If you’re doing this precisely to leverage their lists in order to build a bigger one for yourself from which you can profit more in the future, then who cares if they get paid more?

Finally, I would also add that you can go even a step above by offering a bundled offer after the initial promotion, where you and your JV bundle your products together at a higher price, and split the profits.

(Again, a true joint venture goes beyond a typical affiliate-based arrangement.)

You can promote this bundled package to both your lists. If they’ve offered your product in the past to their lists, then a bundled offer can get the remaining non-buyers to buy.

It might just be the extra nudge they need!

Say your conversion is 3% on average. Your JV partner promotes it as a standalone offer to their existing lists of people, with whom they have an established relationship. Their conversion is therefore 5%.

If you bundled your products together, you both can scratch up an extra 3-5% or even more in additional sales (I’ve seen as much as 11-12% by simply doing bundled offers).

These non-buyers might be more inclined to buy the bigger, more valued-added package.

If you can, offer it at a special price too, which is less than the two products sold separately. This helps you to abstain from offering any discounts, which can cheapen your product.

(The bundle and its price are separate and distinct from both individual products, so any special pricing doesn’t affect the value perception of each standalone product.)

Look at it this way: you wouldn’t have generated these additional sales if you or your partner simply stopped after the initial offer.

In fact, this bundle might be just the perfect nudge to get your JV’s prospects to finally buy that JV’s own product! (Now, that’s a benefit you should definitely include in your request, if you choose this route.)

Or at the very least, ask your JV partner if you can become their affiliate and promote their product to your list, too. Again, it’s a win-win solution and beyond a typical affiliate arrangement.

Sometimes motivating a potential joint-venture partner takes a little massaging. Don’t be afraid to do your homework, show the numbers, presenting them in a light that most favors your partner, and listing all the benefits and possibilities they may not have considered.

Above all, don’t just talk about the money. While it is the most common reason behind joint-venture partnerships, list all the additional benefits your partner (and their prospects) will receive, too.

A good list-leveraging partnership is worth a little extra effort.

About the Author

Michel Fortin is a direct response copywriter, author, speaker, consultant, and CEO of The Success Doctor, Inc. Visit his blog and signup free to get tested conversion strategies and response-boosting tips by email, along with blog updates, news, and more! Go now to http://www.michelfortin.com.

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Comments

From Jeff

Thanks - great advice Michel. I’m a really big fan of entertaining jv’s when…

1. The product is a good match for my list - anyone who has taken time to read my blogs, articles and ezine would know what that profile would be - certainly in line with what you term “doing your homework”

2. Come up with some unique ideas on joint promotion - something that stands out from the normal “mail my list with an offer” - I like to see a targeted article, report or a review copy if I feel a review would work well or even an interview or series of interviews that gives real value to my list. If I can give real up-front value to my list then there is really very little risk in a JV - even if the sales don’t pan out, at least I have given good quality to my subscribers.

Great post!

Jeff
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Author's Website January 29th, 2008
From Lenny

I don’t know about you, but I also flat out refuse to promote another marketer’s name squeeze page or a page which has an ‘email capture’ form on it… my list cost me a lot of hard work and money to build and I’ll be damned if I am just going to give it away to someone else… or is this just me?
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Author's Website January 29th, 2008
From Michel Fortin

@Lenny:

(Glad to see you here!)

Exactly.

And that’s the point: you should be given something extra for that. You shouldn’t be “giving them away”.

Either your JV has a comparable list, and the joint offer can be sent to a namesqueeze that you both own and share, which creates a third list you both can promote to, or you’re given a larger commission to compensate you adequately for “giving away” these leads.

If not, then it’s no different than a typical affiliate offering.

Not a JOINT venture.

(Offline, it would be no different than if you decided to rent out your list. And that’s not really appealing to me, either, unless I get something more in return — residually, if possible. Because I’m not in the list rental business.)
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Author's Website January 29th, 2008
From Dave Origano

Hey Michel,

thanks for posting such a great article.

So many people in the ‘IM’ niche don’t understand the difference between a joint venture and a typical affiliate. How would one ever be willing to promote your product if you just become an affiliate?

And rarely I see the favor returned… that’s why many top entrepreneurs always require the potential JV partner to do something for them first.

In the end a JV should be what it’s supposed to be, a cooperation between two great minds. And not a ‘want to promote me’ type of offer.

-Dave
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Author's Website January 30th, 2008
From Bobby Handzhiev

Great article Michel. I’m going to test what you teach pretty soon… and you’ll know the results
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Author's Website January 30th, 2008
From Harian Metro

One of the best articles i read this year…thanks mike for the advice…i’m going to test it too ….mike can you post something about media buying tips..plz
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Author's Website February 3rd, 2008
From Berita Harian

i wish i could write as good as you bro…;)
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Author's Website February 3rd, 2008
From Jack Humphrey

Michel,

Awesome post man. Now that you’ve done the heavy lifting, I have a place to point FTR readers for this info.

Here’s another thing you can do to get their attention: Send them traffic! If they have a blog, submit some of their posts with StumbleUpon, Digg, etc. and get them ready to hear from you.

You will be able to tell when they’ve registered the extra traffic and where it came from because they are likely to come check out YOUR blog and even comment. Great time to contact them and ask how they liked the extra traffic.

We do that to get JVs and it works like gangbusters. We use our product on their sites and then tell them what we did. Once they “feel” it in action, they’re hooked. Never had anyone turn us down after that.
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Author's Website February 6th, 2008
From Theo Baskind

Hello Michel, thanks for the submissions to my Blog Carnival, Beginner Success Workshop! If there is anything I can do for you please don’t hesitate to ask my friend!

To Your Success,
Theo Baskind
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Author's Website February 22nd, 2008
From Maekel

Dear Sir,

I am an investor in Ethiopia in leather shoe making industry for the last 10 years. I found your page in google when I was looking for “joint venture offers”.

I was wondering if you could help me. Ethiopia has a very promising leather industry. Many European companies are entering here. So I have big place and some machine and short of money. So I decided to upgrade my biz in joint venture or partnership.

So I just want you to know my condition and if there is anything you want to say, please write me

Best Regards,

Maekel Kassa
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Author's Website March 25th, 2008
From Fred Lamptey

Hi Michel

Thank you for your tips on your ‘give your JV offer an extra puch’. I’m a ‘new bee’ in online marketing looking for JV partners to help me market my products.

You have given me some incredible pointers and tips to tweak my JV offers.

I acquired a worldwide licence from TED NICHOLAS to market some of his best selling products. It comprises of ebooks (as my front-end products) and DVDs, CD and Manuals on copywriting.

Visit http://www.write-n-sell.com for the e-books and http://www.wpinvitation.com for the physical products.

I’ll be delighted to JV with you on your terms.

Regards

Fred
Reply http://www.write-n-sell.com for the e-books and http://www.wpinvitation.com for the physical products.\r\n\r\nI\’ll be delighted to JV with you on your terms.\r\n\r\nRegards\r\n\r\nFred’); return false;”>Quote

Author's Website April 4th, 2008

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