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Benefits of Joint Venture Marketing

Aug 26, 2008
Joint venture marketing is similar to joint venture agreements in other business domains: simply put, it is an agreement in which one party makes an agreement to do business with another party. In a joint venture, each party brings something different to the partnership, synergizing their skills, and offerings to create something stronger than either party could execute on its own.

When it comes to marketing, foraging a joint venture has to do with expanding your net of sales and marketability by creating relationships with others in a similar business that have something different to offer than you do alone. For instance, one party may have a phenomenal product, but are new to the business and have few contacts or a way to get their foot in the door with this great product. Another party may have an extensive client list and contacts in the industry, but nothing new to sell. A joint venture marketing relationship between these two parties will benefit both, and create business opportunities for both parties, where none existed for them independently.

A Win-Win Situation

Joint venture marketing is about building business relationships that create a win-win situation for both parties: they both gain something from the other that didn't exist before they began a joint venture marketing collaboration. Joint venture marketing practices most frequently take place between two parties, but a joint venture marketing plan can include a number of parties - it does not have to be limited to just two parties sharing information and resources.

With joint venture marketing, you are creating a third entity from your combined resources. This way, each party's individual business and resources are protected, yet the joint venture scheme also increases business for each party by reaching a different niche in the market than either could alone.

Where is Joint Venture Marketing Used?

Joint venture marketing is largely born out of the Internet boom. The inception of the Internet has created an almost endless array of ways to reach new and prospective clients. Internet marketing is largely built on the sharing and exchange of information. Joint venture marketing is another way to distribute information, and for numerous parties to profit from a collaboration.

In regards to Internet use, joint venture marketing is often used as a way to increase traffic to your website. If your business has a reliable list of clients but has difficulty breaking into new niches or gaining new business, a joint venture may be a good option for you. For example, if you go up to a stranger on the street and say, "Hey, I've got this great product for you to try" - they will most likely not pay attention. But if someone that they already trust, and whose products they use says, "Hey, I've got something new for you to try that I think you'll really like", the prospective client is much more likely to pay attention to the offer, and potentially try the product. This is the idea behind joint venture marketing: a collaboration that will mutually benefit both parties through a sharing and exchange of expertise and information.
About the Author
Christian Fea is CEO of Synertegic, Inc. A strategic Collaboration Marketing consulting firm empowering business owners to discover and implement Integration, Alliance, and Joint Venture marketing tactics to solve specific business challenges. christian@synertegic.com
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