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Increase Your JV Profits by Paying For Advertising Results

September 30, 2009 by Christian · Comments Off 

How would you like to save money on advertising AND make more money? Your joint venture is a business vehicle that lives or dies by the bottom line. Doesn’t it make sense to use win-win methods that help your JV grow and become profitable? That’s why results-based advertising can help your JV increase sales while reducing your marketing budget.

Why pay for advertising when you get zero sales and no quantifiable leads? It ends up becoming wasted advertising, wasted money lost forever. “Results-based” means you only pay when you see results. It puts you at less risk to waste money, and your advertisers end up making more money than a set, pre-determined fee.

Results-Based Advertising

Your advertising budget can get inflated quickly. Print, radio, and TV ads can add up to tens of thousands of dollars in a short time. What you need is a method that helps retain dollars in your bank account until you are able to attract and convert leads from advertisements.

Pay Per Click - The Internet has become one of the most-used advertising systems in the world. Pay per click advertising uses prominent search engines to get your JV business on top of search results for specific keywords and phrases. You simply make a bid on certain keywords for which your ad should appear. And when a user clicks on your paid sponsor link to your Internet landing page, only then do you pay for the advertising. This system is easy and can generate thousands, or depending on the keyword, even millions of potential leads.

Pay Per Call – Similar to pay per click, this system provides an actual phone number rather than a website link in the paid ad. When a user makes a search and finds your ad, they call your JV business directly for more information. Your telephone sales staff then has the opportunity to gather information about the customer/client, and formulate a sales pitch to meet their needs. Pay per call is more expensive than pay per click, but the sales conversion ratio is much better at 45 percent, compared to about 3 percent for pay per click.

Results-Based Advertising - During a recession, advertising space grows. Magazines, newspapers, TV stations all have trouble selling space and time when the economy is down. As a result, advertisers become motivated to sell space at a discount rather than lose money.

When you talk to advertisers about purchasing space or time on their platform, do you ask them whether they believe your JV business will see sales by advertising with them? And if the answer is “yes,” then you can progress to discussions of another type of joint venture with them.

Using a similar method from pay per click or pay per call, offer to pay the advertiser a pre-determined fee or commission only when a quantifiable lead comes to your JV business. You can set up the lead generation so that the advertiser can track them. With every lead that comes from their advertising space, you pay them a set fee. This could result in higher fees for the advertiser, while reducing your risk for ineffective advertising.

Make the most out of your precious marketing budget for your JV. Start utilizing a system that makes advertisers work for you with a focused, results-based advertising.  The results can be more profit for you and your advertisers.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Filed Under: Business, Business Plan, Entrepreneur, Joint Venture, Joint Venture Marketing, Joint Venture Partners, Marketing, Money, Partnerships, Small Businesses, clients, entrepreneurship, strategic alliances
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Twitter Weekly Updates for 2009-09-27

September 27, 2009 by Christian · Comments Off 

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Increase Sales With Results-Based Compensation

September 23, 2009 by Christian · Comments Off 

Why pay salespeople who are not motivated or do not make adequate sales? If your joint venture product or service depends upon face-to-face or direct contact with potential customers and clients, you should consider using a results-based compensation system.

Auto dealers do it. Real estate agents earn it. Corporations pay brokers with it. What is it? Commissions. People who meet face-to-face or talk directly with a potential lead earn their keep by commissions. They close a sale and enjoy commission earned.

A set salary can become un-motivational when sales staffs realize that they still get paid regardless of whether a sale is made. If you use in-house staff, set up a motivational compensation system that pays them a percentage of every sale they make. Set sales goals so that each staff has a purpose and destination to reach with total sales. And incorporate bonuses for meeting and exceeding goals.

This type of results-based compensation will ultimately bring your JV sales staff greater salaries, and ensure that you hire and retain the best sales force available. If you prefer not to have in-house staff and your JV product or service can use an independent contractor, such as a licensed broker, set up a similar compensation system with them.

Structure for Results-Based Compensation

Simple Gross Percentage - This is the easiest type of results-based compensation structure. When a salesperson makes a sale, a percentage of the total sale goes back to the seller. For instance, if one of your sales staff makes a $5,000 sale with a 10% commission, they earn $500 for that transaction.

Gross percentage can be tiered as the value of the product or service increases. For instance, you may pay a commission of 10% for items valuing $0-$999, 8% for items $1,000-$4,999, 6% for items $5,000-$9,999, etc. You can structure a tiered commission any way you like to motivate your sales staff, and when items increase in value, so does the commission percentage.

Residual Commission Income – Many JV businesses are offering not a product but a continual service. Service subscriptions are the way these businesses make money. When a customer subscribes, they pay a fee, usually on a monthly basis to have continual access to the service. The more subscriptions gathered, the more income your joint venture can realize.

Salespeople can be motivated to sell subscriptions for a residual commission fee. Every time they sell a subscription, they receive a portion of the monthly service fee for as long as the customer remains a subscriber. With this type of result-based compensation, a salesperson may have unlimited income potential.

Bonus - Bonuses are important for sales staff to remain motivated. As well as receiving compensation for each sale, a salesperson can earn a pre-specified bonus for meeting sales goals. A bonus could be cash, or something else of value such as an automobile, a Hawaiian vacation, or even stock options if your JV structure is a corporation.

Be wary of how you pay your people to sell what your JV produces. With results-based compensation, your income grows, and you attract the most talented and motivated sales staff. Make sure your JV business compensation is win-win.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Filed Under: Business, Entrepreneur, Joint Venture Marketing, Joint Venture Partners, Marketing, Money, Small Business Owners, strategic alliances
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Use Business Psychology to Help Your JV Succeed

September 21, 2009 by Christian · Comments Off 

Business psychology is one of the fastest-growing and exciting areas of business application. Major colleges and universities are creating undergraduate and graduate programs that deal specifically with business psychology. Business leaders in larger corporations are finding that business psychology helps their organizations perform more efficiently and run at optimum levels.

Business psychology can be a vital factor to the success of your joint venture since psychology plays a part in every person-to-person transaction you perform. Here are some of the important ways your JV can grow and succeed when you implement positive business psychology:

Relationship Building

Starting with your own JV partner, you must form, build, and maintain business relationships. Your relationship with your JV partner needs to be cooperative, progressive, and encourage creativity. You’re a team, and teamwork is the ability to work together toward a common goal.

  • Interpersonal skills - How do you communicate with people? Does your approach make others feel welcome and receptive, or chastised and put down? Interpersonal communication is a skill and sometimes needs to be learned, honed, and practiced. Learn to be able to communicate effectively with business partners, customers, and employees.
  • Build lasting relationships – Using your interpersonal skills along with your personality, you must build relationships in order for your JV to succeed. Talk to others. Make friends and acquaintances. Network. Even shy and introverted individuals can learn to use their strengths to build relationships that help their respective businesses succeed and be a pleasure to with whom to work.
  • Teamwork – Are you a team player? Or do you play by your own rules? If you want to build your JV business relationships, be prepared to leave your ego behind and contribute to the greater good of the team. It is important for every member of a team to contribute. And even if you are the leader, your job is to encourage that contribution from everyone and help them do their best, rather than an autocratic “do it my way” approach.

Networking

Whatever your JV business, networking will help you and your JV partner experience growth better than simply hanging out the proverbial shingle and advertising. People carry news to other people more effectively than any other method. Be sure you use positive business psychology and your relationship building techniques to help promote your JV through networking with other business owners, customers, and anyone who can potentially put in a good word about your business.

Professional Development

What about your own professional development? Take classes in business psychology, interpersonal skills, or even classes that can help you work through shyness. Many community colleges offer such classes usually at cheap tuition. Other for-profit companies offer professional development for reasonable prices. Take the time to develop your business psychological skills with your own personal development training program.

Business psychology, whether you recognize it or not, is employed continually around any business. Don’t let it work against you. Develop your business psychology skills so your JV can grow and prosper.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Filed Under: Business, Business Plan, Entrepreneur, Joint Venture Marketing, Joint Venture Partners, Marketing, Money, Psychology of Joint Venturing, Small Businesses, clients, entrepreneurship, strategic alliances
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Twitter Weekly Updates for 2009-09-20

September 20, 2009 by Christian · Comments Off 

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Your JV Consumer Psychological Strategy

September 18, 2009 by Christian · Comments Off 

Do you know how your customers view your joint venture business? And how do you treat your customers? Consumer psychology is important when you consider how you promote your JV business and develop products or services. In fact, it’s an integral part of the business process. You and your JV partner should be aware and understand consumer needs in order for your joint venture to expand and be successful.

Consumer psychology is based on several factors. The following are just a few of the important factors that help shape the consumer psychological profile for a particular business.

Purchase Experience

A consumer wants to have a pleasant purchasing experience. Spending hard-earned money, especially in a down economy, is a big responsibility to the consumer. They want to know that they are getting value.

Is your product or service a faceless, anonymous item with no personality? Or do you market and package your product with style and flair? The packaging of your product plays a big part in how a consumer views the quality. Even if your JV offers a service, the method of marketing and promotion gives the consumer a good idea of the quality.

Pricing also fits under this category. You don’t have to sell the cheapest product, but be sure you offer great value for your pricing strategy.

Customer service is also very important. If you sell your product or service directly, the more personable your sales clerks and staff are, the better experience your customers will have. Also, be ready to satisfy customers who have complaints and questions about your JV product or service.

Quality

The quality of your product or service will determine whether your customer returns and spreads the word about your JV business. If you sell a product that falls apart or turns out to be low quality for the price, you can be sure it will have a negative effect on future business.

Your JV business should always focus on quality. Your service should always have experienced staff (which may be you), which serves the client well. If your JV manufactures and sells a product, be sure that the materials are of the best quality, and the process is efficient so that your consumer will value what he buys.

Innovation

Innovation plays a big part in consumer psychology. Does your JV meet a specific niche?  Did you and your joint venture partner develop an innovative way to present a product or service? Consumers value a product or service that doesn’t fit an old mold. New technology, innovative design, and additional services – all these elements can be innovative to your JV business. Consumers will value innovation in your product so don’t neglect it when you and your JV partner start your venture.

You and your JV partner need a strategic consumer strategy when you form your joint venture business. Be sure to consider how your customers will approach and value your product or service from the outset.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Filed Under: Business, Entrepreneur, Joint Venture, Joint Venture Marketing, Joint Venture Partners, Marketing, Money, Optimization, Small Businesses, clients, strategic alliances
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3 JV Marketing Strategies During A Recession

September 16, 2009 by Christian · Comments Off 

Business growth can be difficult during a recession. How do you continue to market and promote your business when spending cuts are necessary and profits are down? It can be done – but it takes some creativity and effort to make up for paid advertising. Here are three good ways to market your JV during a recession:

1. Pricing Strategy

What is your pricing strategy for your joint venture product or service? Are you pricing for sales or profit? You should remember that many consumers base their purchasing decisions on experience and quality in addition to pricing. Thus, you and your JV partner need to evaluate these elements in your pricing decisions.

Pricing doesn’t necessarily mean you have to sell at the cheapest rate. You want to create an experience and quality that the customer wants to come back to and share with others. But remember that in a recession consumers are likely to price shop more, which means you, may have to experiment with pricing to determine the optimum price strategy. You might try a certain price in one region of the country and another price elsewhere. Find out what consumers respond to and make adjustments accordingly. Remember, it’s not the lowest price, but the overall experience for the consumer that brings them back.

2. Social Media

In a recession, your advertising budget is precious. Though the conventional wisdom is not to lower your marketing budget even during a recession, you need to find the best ways to get value for your marketing efforts. Social media is a way you can promote your JV without a lot of money.

Social media such as YouTube, Facebook, and Twitter, have become popular not only among individuals, but for businesses as well. If you or your JV partner is tech savvy, you could create and produce short videos and promote your JV product or service with a YouTube account. Facebook has millions of users. Create a business page and gather fans to which you can send notices of promotions and specials on your products. Twitter is becoming a popular way for celebrities and businesses to promote themselves with short broadcasts and links.

What’s the best thing about social media? It’s all free! All you need is a little effort to create your JV business profiles and update regularly.

3. Press Releases

Press releases can provide your JV business with free publicity. Did your JV business just form into existence? Write a press release. Do you have a new product developed through your JV? Write a press release. A well-written press release should be sent to all local and regional media. If a particular media finds a press release interesting and worthy of further investigation, you could get interviewed for an article. That type of free publicity is priceless, especially in an economically depressed climate.

In order for your JV to succeed, you need to get the word out about your joint venture product or service. Consider these easy and cheap marketing strategies and come up with your own creative ideas.  Marketing during a recession can be successful if you find the right avenues.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Filed Under: Business, Joint Venture, Joint Venture Marketing, Joint Venture Partners, Marketing, Money, entrepreneurship, strategic alliances
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3 JV Marketing Techniques That Work

September 14, 2009 by Christian · Comments Off 

Has your joint venture taken off yet? Or are you and your JV partner still struggling to get noticed or even find that special niche? Joint ventures are a great way to promote a business idea with double the experience and double the resources. But without the right marketing strategy, your JV may sit stagnant with flimsy profits.

How can you give more oomph to your JV marketing and promotion? Take these marketing tools into consideration and put them into practice. You may find that your JV will start flying instead of coasting.

Joint Venture Design

What is your JV design? You should have a marketing design and theme for your business product. Here are some design elements to consider:

  • Color – What is your color scheme? Use colors that evoke emotions. For instance, reds are passionate, vibrant colors, while blues are subtle and more subdue. Use colors that promote your JV business idea best.
  • Logo – Does your JV have a logo? If you are jointly manufacturing a product or performing a joint service, you should consider having a professionally designed logo to add to all your promotional materials.
  • Graphic Standards – Does your promotional material have consistent graphical standards such as fonts, colors, and themes? Your promotional material will be taken more seriously when your graphics are consistent and professional looking.

JV Advertising

Where do you advertise your joint venture product or service? Are you marketing on a local, regional, or national level? The methods you use to advertise can make a big difference in the success of your JV. Consider how you use the following:

  • Print – Consider the above-mentioned graphic and design standards for your print ads. Are your print ads eye-catching? Where do you place your print ads? Newspapers? Magazines? Local programs? Print ads are expensive. Be sure to place your ads in print medias that will be seen by your target consumer.
  • Radio – Radio ads are relatively inexpensive and can be effective. If you wish to promote through radio, be sure to talk with various radio stations and have them provide important demographical information.
  • Television – Television spots can be produced from the local to national level. Have you seen the local auto dealer ads? Usually they have low production value, but they get the message across clearly. National TV campaigns will require big bucks spent on production including writing, actors, equipment, and of course, cost of placement.
  • Internet – Your Internet marketing strategy should include at minimum a website for your JV product. You should also take advantage of paid Internet marketing such as pay per click or pay per call, where your ad gets placed on top of search results for specific key word

Joint Venture Marketing in Social Media

And don’t forget the power of networking through social media. It’s free and with a good promotional strategy you can build a huge customer base.

  • YouTube – Create short, creative videos that promote your JV business.
  • Facebook – Facebook allows you to create a business page and promote it among all Facebook members.
  • Twitter – The popularity of Twitter allows you to promote your business 140 characters at a time. Tweet about your JV business and acquire followers. You can send out links to your website or even promote coupons in your tweets.

Your JV promotional strategy is important to the ultimate success of the venture. Be sure to take advantage of every promotional opportunity available to you.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Filed Under: Business, Entrepreneur, Joint Venture Marketing, Joint Venture Partners, Marketing, Money, Small Business Owners, clients, strategic alliances
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Twitter Weekly Updates for 2009-09-13

September 13, 2009 by Christian · Comments Off 

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Relationship Marketing Through Joint Ventures

September 11, 2009 by Christian · Comments Off 

All business is about building relationships. Whether it is building relationships with partners, employees, customers, or vendors, everything successful about your business depends on the relationships you form. And it is no different with a joint venture.

Your JV is first and foremost a relationship with another business owner. You must build a bond with another individual who is successful in his or her own business. And the more successful you are with building that bond, the more likely that your common goal of making JV profits will become reality.

Relationships: How They Influence Joint Ventures

But what is the most important relationship element of a successful JV? Customers. Without customers, there are no sales, resulting in no (or negative) profit. That’s why it’s important for you and your JV partner to think about relationship building with your customers. You can do this from the first point of contact with relationship marketing.

Relationship marketing is a strategy where you and your partner acquire customers by forming a mutually beneficial relationship. You and the seller must focus on the value enhancement of selling a product to a customer. With an approach that steps outside the normal purchase and exchange process, you strive to make a purchase more meaningful to the customer.

With a personalized approach involving direct contact and a wholesome exchange experience, your customers will feel a more emotionally richer purchase experience. This way, you and your JV partner create an emotional tie with your customers, and they feel more satisfied with their exchange with you, and they will want to buy from you again.

Goals of Relationship Marketing

Relationship marketing creates strong bonds and builds a healthy customer base. With a relationship marketing approach, a JV should have two goals in mind:

  • Satisfaction – Relationship marketing relies upon the complete and total satisfaction of a customer. By providing quality goods and a holistic and personal selling strategy, each individual customer becomes relevant to the total customer base.
  • Retention – Relationship marketing is also focused on retention. By providing exemplary customer service and exceeding the customer’s expectations, they will want to do business with you again and again. It is human nature to do business and have contact with others who make us feel comfortable and offer a pleasant experience.

Without even conducting mass marketing to a wide target base, your relationship marketing approach can build your customer base even faster. Not only do you retain customers through relationship marketing, you gain more through word of mouth and referrals. Referral customer building can have a viral effect when friends tell their friends, and so on.

A joint venture with intentions of building upon existing customer bases should consider relationship marketing as a viable way to grow and expand business. When customers love the experience and want to spend money on your product or service, you have succeeded in your relationship marketing campaign.

Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing firm. He exemplifies how to profit from Joint Venture relationships by creating profit centers with minimal risk and maximum profitability.

To discover more Joint Venture Marketing Strategies join his free Joint Venture Marketing Wealth Report.

Filed Under: Business, Business Plan, Entrepreneur, Joint Venture, Joint Venture Marketing, Joint Venture Partners, Marketing, Money, Partnerships, Small Business Owners, Small Businesses, clients, entrepreneurship, strategic alliances
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