What if I told you the easiest way to grow your business was to partner with other people?
That all you have to do is take advantage of the hundreds of thousands of dollars others have spent building their business.
It sounds crazy, right?
The fact is, joint ventures can be the fastest, most lucrative way to grow your business.
And to show you how you can get started, I’ve put together 13 joint venture ideas with examples and word for word scripts you can use today.
Be sure to read each example because the secret ingredient for turning your small business into a mega-success story in hidden in this article.
Who already has a market that you want? What influencers, bloggers, or brands already have a relationship with an audience that you want to reach?
Approach them and ask them to offer a special deal to their list with your product. You can split the profits 50/50.
This works because they lend their credibility to your product/service. In turn, their followers feel comfortable checking out your offer.
Example: Assume you have a piece of software that helps SEO marketers identify long tail keywords. What bloggers already has a relationship with SEO marketers?
Here’s a simple joint venture email script to approach a potential partner with:
I am very interested in setting up a joint venture with you offering XXX to your customers.
It will be a very simple way for you to add substantial profits to your bottom line without lifting a finger or investing a dime.
I’ll do all the work, pay all the costs and make sure the project is kept on track.
All is you have to do is give me the OK to move forward – deposit the $1,000.00 checks I will send you.
Identify a business with only one or two products and nothing else to offer.
Many brands only have one or two products. But then they either run out of products to sell to through their distribution, or sales on their one or two products start to die off.
They have already invested a significant amount of dollars and time building a distribution channel (i.e. you’re in Wal-Mart. Whole Foods, 1,000 specialty stores around the U.S., or a list of customers on their website).
If they have a good relationship with their buyers, all they have to do is find other complimentary products and work out a deal to offer them to their current customers. No time or money is invested creating additional products.
Now, you need to ensure the benefit the product provides is valued and desired by the customers. But you can gain a full sales staff overnight by using other’s current sales distribution.
You can find businesses that have a lot of inactive customers and do a joint venture deal with them. You take a percentage of the revenue for all customers you bring back.
Think about businesses that have a product or service that is repeatedly used, consumed or needed.
Or in other words, you’re looking for businesses where customers have stopped using/going not because the customer went elsewhere, but because they just simply stopped. Maybe they had a change in their job or had a kid, or you stopped contacting them. They need to be reminded to schedule their monthly or yearly service.
Examples would be a dentist or chiropractor or carpet cleaner. Approach the dentist and offer a joint venture. Persuade them that if you are able to reactivate clients that haven’t been in for over two years, they will give you 50% of the revenue for each customer you reactive.
Then you can choose to email, call or write a letter to the inactive customers reminding them to come in. Or contact with a special offer or bonus for calling and scheduling their appointment now. This could be very lucrative if a dentist has 1,500 inactive customers and you are able to reactivate a percentage of them.
4. Buy in Bulk.
I came across this idea at a local e-commerce meetup. The owner of a chain of candle making stores (10 total) was giving a presentation on his business model. One thing, in particular, caught my attention.
They sell a start-up system to potential business owners that offer a package where you can replicate their entire business system. This is different from the traditional franchise model where someone replicates their exact business in another location. They are able to brand it however they want to.
The system includes all the necessary items to start and launch their own candle making retail store. This is very beneficial to a new store owner because it could save them years and thousands of dollars figuring out what works.
You see, the main reason they do this is that every time they sell a store on their systems, they also lock them into their purchasing network. The new stores pool together with the existing stores and they are able to buy more raw ingredients in bulk. This splits the costs among the stores.
Now, let’s do the math. If they purchase raw ingredients only for their 10 stores, it would look like this:
Pounds of wax: 1,000
Total Cost: $10,000
Number of Stores: 10
Each store pays $1,000 ($10,000/10) for 10 lbs.
BUT, if they add the 20 other stores to the purchasing mix, they can now buy 3 times as much, and then split 30 ways the costs in a fraction of what it was.
Pounds of wax 10,000
Total Cost: $20,000
Number of Stores: 30
Each store pays $667 ($20,000/30) for 333 lbs.
Does this make sense? It does? Good. Let’s move on.
Say two people have an identical product or course called, “How to Increase Website Traffic.” They both sell to the same target customer. Instead of each launching and selling their product on their own, they could partner together and launch one massive product.
By doing this they leverage both of their lists and both of their skills. This would deliver greater value and a far superior product (content, videos, scripts, coaching calls, etc) then they would on their own.
Think barter is only for 3rd world countries or the 1400’s? “I’ll trade you my wheat for your corn.” Think again. What skills do you have that you could trade with someone else in return for their products or knowledge?
Example: If you’re great at increasing website conversions, but can’t muster up a sale via email marketing to save your life, you could find an email marketing expert and offer to help with their conversions. In return, they help with your email marketing.
Both of your times could be worth $100 dollars per hour, but by trading your services you avoid the hard cost (exchanging of cash) and you both win.
I’ve seen this happen too many times. Someone creates a product and has no idea or hope on how to sell it.
Well, instead of either giving up or pounding the pavement by yourself with no results, you could assemble a dream team. Find experts in marketing, copywriting, development, design, etc. Offer them a split of the revenue. Launch the new business with everyone specializing in one piece.
You may only make ⅙ of the revenue now, but if you bring in 10 or 100 times more than you would on your own, it could be much more lucrative.
Most businesses have equipment, machinery, delivery trucks, salesmen, space or processes that are either unused or underperforming.
You can approach businesses and offer to do a quick walk around to identify unused or underperforming assets that they can turn into profit centers.
Identify warehouse or office space that they are utilizing and are paying a fixed monthly fee. You could then find other businesses, start-ups, entrepreneurs to lease the space to.
You could find telephone sales team that may only be used for part of the day, and lease them out to other businesses who can’t afford to hire an internal telephone sales team.
You could find delivery trucks that are delivering goods one way but returning to the office empty. Make a deal where you rent them to delivers other people’s products on the return route
There are between 600,000 and 1,000,000 books published each year.
Now, many these authors have very great books and a nice sized following. The problem is, they have no clue how to monetize their audience other than with writing more books. Think about what products are services would be add-ons that they could sell to their list.
For example, an author with a book coconut oil has little other ways to sell additional products or services to their list. Either take your own coconut oil product, or go out and find somebody else who has a great product, and have the author offer do an endorsed mailing to their list where they recommended your product.
You could split the profits generated from the resulting sales.
The easiest way to get started with joint ventures, without having money, without having a list, without having a business – is to form a joint venture with your current company.
If you approach your boss and say “I want to make our company more revenue, or cut our costs – all on a performance basis, and still continue to produce within my current role.” It would be difficult for them to say no.
Try this today within your current company:
If you follow the 80/20 principle, you know that for almost every company, 20% of the salesmen/women are responsible for 80% of the sales.
Now, there could be a variety or reasons why the best salesmen/women out pull the others:
Within your company, identify the best salesperson who converts better than everyone else at different points in the sales cycles. Train the rest of the salesmen with their strategies and techniques.
You could work out a deal where you get 10%-50% above what the revenues the company is already doing. It’s no risk to them.
This is a very powerful method. If you can persuade the owner of a product or service that for every 10 people that start a relationship with their company, 8 come back and buy over and over again. They will see how important it is for customers to get started with them.
You can then work out a joint venture deal where you give your customers a free bonus for purchasing your product or service. The bonus would come from the other business (where you either pay them at cost or lower than cost or it’s free).
It benefits both sides because your sales with the increase because of the bonus, and they will add an ongoing stream of new customers, where 8/10 will continue to buy their product for years.
Why put up millions of dollar starting a business when you can piggyback off of someone else’s existing assets or distribution to start a business.
Airbnb first used Craigslist to post ads for their apartment rentals.
Paypal partnered with Ebay to launch their payment platform.
This is easier than it sounds:
Let’s assume you have an idea to start manufacturing and selling motorcycles.
If you already had the money, how would you use it?
Well, you could build a manufacturing plant. And then once you start to produce, buy an office building to house your employees, hire and train a sales team, get distributors and get retailers.
Why not shave millions of dollars and years of this process?
Find a manufacturer of a similar product (lawnmowers, ATVs, dirt bikes) who already has a manufacturing plant that’s not fully utilized. Who already has distribution and a sales team.
Do a joint venture with them where they put a second shift to manufacturing your motorcycle. And then they put it through their current distribution.
You might only make half of what you would originally make but you didn’t have to risk putting down millions of dollars to begin.
Rather than spending thousands of dollars developing new products, doesn’t it make sense to approach other proven products and offer to buy the rights?
You see, there are thousands of men and women who sell at local markets or crafts fairs or on Etsy. These people have great products, but once again, they have no idea how to sell or market it.
But you have the key, you have the distribution. Many other brands also have great products but have no idea how to sell it. If you approach them and say you sell can more of their product than they can, it would be very hard for them to turn down a deal.
You can approach these people and offer to buy the rights to their product and put it through your distribution network. You give them 5% royalty on each product sold and keep the rest.
Why would they do this? Because left up to them, they would never get around to selling. You giving them 5% and selling 100,000 products is much more than they would get selling 1-2 products here and there. You have the key, you have the distribution.
A way to approach them is:
I’m personally writing you because I have a great new profit center that you can easily add to your current business.
I want to create and buy the rights to a whole new, unrecognized, revenue-generating part of your business. I want to do all the work for you, and I want you to share the profits. I have a really cool model can be very meaningful to your business. It can only add, not take away, from the revenue that you are currently generating and put a lot more profit in your pocket.
I would be very pleased to give you a very quick short-course, big picture overview of my idea and all it entails–plus why the probability of the financial payoff I’m projecting is quite realistic and conservative.
Do you have time for a 10-minute phone call next week, Monday, 9/19 or Tuesday, 9/20? I’m free all day, especially the afternoon, or I can work around whenever is convenient for you.
After reviewing these 13 joint ventures ideas, do you now see how much more fun and lucrative this can be then growing your business the typical route? Comment below and let me know your favorite joint venture method: