Joint Ventures & Partnerships, Profit

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Joint Ventures - Lesson 3

Joint ventures are also called host-beneficiary relationships, strategic alliances, host-parasite relationships and business alliances. Joint ventures are mutually beneficial relationships that take under-utilized resources and turn them into profits.

Joint ventures will work for your e-business whether you have a product or not. Joint ventures are a great way to promote new products or services to your clients. If you do not have a product that you sell on your e-business website, you can use your marketing skills to promote other products to your subscribers.

Joint ventures will work for almost all products and services. The important thing is to look for the products or services that would complement or fit what you are doing with your e-business. Your e-business will attract a certain demographic looking for a particular product, service or kind of information. You will need to consider what this group of people wants. Compile a list of every possible product or service that this group of people could want. Do your research and setup joint ventures to provide this group of people with the opportunity to get the products and services they want, while they are visiting your e-business website.

The two things to look for when you are trying to setup a joint venture deal are:

  • An great product (either online or offline)
  • A well established customer list that will result n sales

You will also need to convince your proposed partner that a joint venture will help them generate more sales, increase profits and be of value to their business. You may also be required to show them the plan of how this could be achieved.

There is no set formula on how you would share the income of the joint venture. That is left up to your negotiating skills and your business savvy. Once you have negotiated the joint venture, write up a contract that will outline the joint venture but also protect your ideas.