HOW TO REALLY BOOST YOUR BUSINESS WITH JOINT VENTURE MARKETING

Imagine you were on a TV quiz programme and the million pound question was “If two horses can pull a total load of 9,000 pounds, how many pounds can FOUR horses pull?If you were like me, your initial answer would be to say that four horses could pull a total load of 18,000 pounds. Sounds reasonable — but it’s wrong and you have lost your million pound prize!!Four horses combined efforts can actually pull a total load of over 30,000 pounds. This amazing achievement is possible because of something called synergy (synergy is the scientific term for combined power that is greater than the sum of it’s components).

Synergy is also a good description of the real power behind a very successful promotional strategy called Joint Venture Marketing (JVM). In brief JVM involves two or more companies conducting joint marketing campaigns on a co-operative basis, to promote each other’s company, products or services. When done properly, this form of marketing is very powerful and will result in greater success when conducted in a combined team effort between several companies.

The potential benefits of JVM for your own company could be many, on the operational side this would include; huge savings on marketing costs (from 50%), greater ROI, sharing of skills, technology, resources etc.

Actual marketing benefits from JVM would include; wider exposure, higher promotional response, greater sales results, new business contacts, extended client base, higher company profile and greater credibility for your business.

Companies of all sizes continually conduct JVM campaigns; some multi-nationals such as Coca Cola, Mattel, McDonalds etc. use JVM very successfully.

JVM methods are many and varied and can be used in ALL forms of marketing strategies including; advertising, mail-shots, PR, exhibitions, networking and especially the Internet. All types and sizes of businesses can conduct JVM strategies and normally all partners in a JVM group are non-competitive and their services and products compliment and promote each other.

Try and form marketing partnerships with people and companies you already know and can work with, these can also include your own clients and suppliers. Choose potential partners on how their products and services could compliment your own business and how you could do the same for them.

Well-established businesses with an excellent background, reputation and integrity, large client bases, with good client relationships etc. would obviously make the best JVM partners. Having an association with top quality, highly respected companies would greater increase your own company’s profile and credibility.

Choose your marketing partners carefully, only form associations with companies who have a referral mindset, a positive attitude, are very customer focused and have excellent business and professional ethics, background, reputation and financial status.

First develop a basic marketing strategy plan to present to potential partners (can be done with the help of a specialised JVM consultant). When the JVM group has been formed, developed the strategy plan further, finalised and agreed (in writing) by all partners.

Most ideas for JVM strategies are quite simple, but there is always plenty of scope for new innovated ideas, which maximises the power of joint promotions i.e.

Advertising – Following a proven format, partners can combine their advertising budgets and strategies to get bigger and better coverage from running joint adverts.

Public Relations – Conduct a long-term PR campaign submitting any interesting story, or information article you can provide on any member of the group or the group itself.

Endorsement Marketing - Endorsement is very powerful promotional strategy for members of a JVM group and can be done directly when networking or by sending personal letters of recommendation directly to a client base. A well-written endorsement letter can easily achieve a high response of around 30% - 50% if certain rules are followed.

Newsletters are an excellent JVM promotional medium, which can be used to promote all partners in a JVM group.

Vouchers are a really exceptional promotional incentive to use in a long-term JVM strategy programme. When all JVM members proactively operate a voucher incentive scheme, it will offer one of the best and most cost effective ways of getting free promotion and potential new long-term clients.

Competitions – Promote like a voucher scheme. All partners collectively help fund a central attractive competition prize(s) to clients, making this form of incentive marketing very cost effective.

Internet – all partner’s websites can be reciprocally linked to each other, providing opportunities for a lot of additional free traffic, greater profile, affiliated income, higher ratings with search engines etc.

Forming a JVM group can initially be a bit involved, but the effort will be well rewarded with the huge savings on marketing costs, greater sales results and lots of new business.

In cases of small JVM projects involving just 2 – 3 companies, with zero or very little marketing investment, management of the project should be easily conducted between all partners. For larger, long-term and more extensive JVM projects, it would be wise to commission an experienced JVM marketing consultant to help develop and project manage the whole strategy programme.

If all members in a JVM group worked in a positive, proactive and determined matter, promoting each other extensively and the group as a whole, then the driving force and results will far exceed the effort placed by all members. This “synergy” is a major contribution to the success behind a professional run joint venture marketing programme.

If you are looking for a sound approach to expand your company, increase sales and profile at minimum cost and with best results, then seriously consider joint venture marketing as part, or all of your future marketing strategy.