Advantages And Disadvantages Of Joint Venture Marketing   by Randall Magwood

in Website Promotion / Joint Ventures    (submitted 2012-01-09)

Do you like joint ventures? Have you ever done one before? Was it easy? Hard? Or just a breeze? No matter what your experiences with joint ventures are, I'm here to tell you that you should seriously consider using them in your marketing funnel. It's a great way to earn easy cash, and you can build relationships all in the process.

There are so many advantages of joint ventures that it just doesn't make sense not to use them. But on the flip side of that, there are many disadvantages to using joint ventures. And that's what we're going to discuss in today's lesson. Let's take a look at the advantages of using joint venture marketing:

ADVANTAGES

- You get people to sell to for free

You don't have to go and fish for customers using pay per click, SEO, or classified advertising. With a joint venture, you get access to your partner's list immediately. Now imagine if your partner had a list of 100,000 people… how much money do you think you'd make from this deal?

This should be great news for you. It's like having 100,000 backend customers to sell to. You can market to them for free, and you can split the profits 50/50 with your partner. Here's another advantage of joint venture marketing.

- No product to make

In some cases, you're the one who will have the list, and your partner will have the product. If this is the case, you won't need to have a product because your partner has taken cared of that already. This means that all you have to do is find a partner with a good product for your list, and then pitch them on your offer.

Now that we've discussed some of the advantages of joint ventures, let's take a look at some of the disadvantages.

DISADVANTAGES

- Your commission rate will be higher

Instead of paying 50% for a regular affiliate, you might have to pay anywhere near 60% - 65% to your JV partner. It all depends on who you're dealing with. If I were you, I would start the commission rate at about 60%. This is the absolute minimum.

If your partner declines on that, then negotiate and state your reasons why 65% is the most that you can offer. Be sure to tell them that your affiliates are only getting 50% of the share, and that they are selling it like crazy. Here's another disadvantage.

- You have to provide the tracking

There are a ton of joint venture software out there that you have to upload to your website in order to track the campaign. Or you can sign up for a membership like 1shoppingcart.com and provide your tracking there. You can even consider Clickbank, Commission Junction, or Paydotcom.

Your partner wants to see results, and if you want to score them as a client, you need to provide them with the tracking that they need to monitor the campaign.

These advantages and disadvantages are things that you need to consider the next time you get involved in a joint venture campaign.

Good luck with making these tips work for you today.

About the Author

Randall Magwood is one of the most respected and highly-regarded online marketing experts on the internet. He currently has a free book about internet marketing that helps small business owners market their business online successfully. To learn more and to download this free book, simply visit his website here: http://www.internetmarketing-rules.com