Business to Business Partnership Basics

All successful B2B partnerships have a few basic principles in common regardless of the industry the businesses are in and the type of partnership. A business relationship not structured to mutually benefit both parties will eventually fail if the goals of both companies not aligned with the business deal. Every B2B relationship that is implemented correctly will have several layers of corporate partnership training to make sure everyone understands the relationship and what their roles are in executing the details outlined in the partner agreement. The training should outline the communication processes for both lower level employees that will be interacting between the two companies as well as outlining basic communications and updates between executives. By maintaining an open line of communication, problems can be fixed quickly and allow small hiccups to be non-issues instead of festering and creating problems that can lead to the unraveling of an otherwise successful business to business partnership.

Mutually Beneficial Partnership

Every business deal should benefit both companies. Benefits can come in many ways ranging from an increase in revenue, reaching new customers, branding with an industry leader, access to resources, additional product/service offerings and many more. However, a relationship that is not structured properly will lead to one company to begin to show disinterest in the relationship if the deal flow or perceived benefits do not materialize. Expectations should be discussed early on in the negotiation phase of developing a partnership so that both parties understand the costs and benefits associated to a new partnership.

Corporate Partnership Training

Just signing an agreement with a new partner does not mean that the deal will ever be implemented. The most important activity to occur after creating a new business relationship is to make sure that training about the business relationship occurs. This may require your business team to spend significant time educating a new partner about your business. Do not expect to be able to send a few web links to be shared with a new partner. Making a training binder that has all of the information needed for both executives and employees is critical. This will allow a new partner to quickly get their staff up to speed about the deal and the opportunities that are available in the new relationship. It’s best to have an easy to use binder to train new employees that come on board after the relationship has been in effect for some time.

Open Communication

Failure to communicate and solve problems when they happen will lead to major issues and possibly result in the termination of the B2B partnership that otherwise could have been successful. It’s always recommended that there be two points of contact between the partnering companies, in case someone is out of the office or not available. This tends to be most important when the issues revolve around customer service as no one wants to lose a long standing customer due to a partner problem. Executives should set in advance regular update meetings and times to review the partnership, discuss new opportunities to expand the relationship and review any financial documents due to co-branded marketing funds or revenue shares. This way everyone feels they have adequate information about what is going on with the business deal.

Develop a business partnership that benefits both companies and ensure that everyone involved in the relationship is completely up to speed with the deal. This is critical to the success of the partnership. Make sure there is an open line of communication to fix problems. Follow these core principles when creating a B2B partnership to avoid issues that may be problematic but more operational in nature and easy to fix since the deal is based on a solid foundation.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Business to Business Partnership Opportunities

There are several types of business to business partnerships that a business owner may pursue in order to improve their business. The main objective behind most business relationships is to find new customer leads and convert them into increased sales and revenue for both participating companies. Consider these four primary types of business to business partnerships in order to achieve the goal of increased sales and revenue including: suppliers, customers, resellers or companies with significant existing sales channels and/or vendors. Each type of partnership has its own unique set of advantages and challenges for successfully implementing and maintaining, therefore it’s important to evaluate each type to understand which is in your best interest to pursue.

Suppliers

Creating business relationships with suppliers usually makes great financial sense and can lead to unique business opportunities. Many suppliers are in a very competitive environment and constantly have to find new channels to sell their products. As a rule suppliers will be willing to give a business partner special pricing, expedited customer service and business referrals when opportunities that are out of their scope present themselves. However; there are some disadvantages with aligning too closely with a single supplier. It is recommended that you keep your supplier partnership agreements as open and flexible as possible to allow multiple partnerships to exist in the same space thus avoiding price spikes or product unavailability due to unforeseen partner problems.

Customers

The best types of business referrals come from existing customers. Provide a revenue share or special pricing for customers that are able to deliver leads that turn into new clients. Developing an incentive program for customers that make referrals is a win-win situation. Often a simple discount can keep your business at the forefront of the customer’s mind when their meeting with someone that fits your target market.

Resellers or Agents

Many businesses that have large databases of potential customers will actively sell a product through their sales channels for a fee and/or a revenue share. Building partnerships with resellers can quickly grow a company’s ability to reach out to the market. Resellers will invest time and resources to market their partner’s products and put their sales force to work selling the product. Small businesses with limited staff to actively sell can benefit greatly from these types of partnership deals.

Vendors

Finding other vendors that sell a complementing product is the right partnership solution for a company that by itself has a product that is not the full solution that a customer is looking to purchase. An example is a computer hardware manufacturer partnering with a company that makes software to do unique tasks that a customer needs.

As a business owner seeking additional deal flow, it is important to evaluate all of the business to business partnerships that are possible for your company. Regardless of whether the focus is on vendors, resellers, suppliers, or existing customers, if properly executed business to business partnerships are one of the best strategies for business growth.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Is a Daily Deal the Right Marketing Strategy for Your Business?

Companies like Groupon and Living Social have developed large networks of customers that are actively seeking new products and services. Whether to participate in a daily is a big decision to make for a small business owner that is looking for exposure to a large existing customer base in their area. The deal sites are known for taking a significant portion of a daily deal and the price being charged to the end customer is already usually below the price a company would normally charge for their services. This is what attracts the huge number of potential customers, however, if done without fully thinking out the true costs of providing the deal and servicing the influx of customers a business can go take a massive financial hit if customers do not stay around and make purchases in the future.

A joint venture marketing relationship with other local businesses may not have the overall reach that a Groupon or Living Social has in a specific demographic, but the revenue share terms will likely be much more favorable and still present your product and service to your target demographic. A daily deal can be great one time marketing campaign for some businesses and so it should be considered as a strategy for any business.

Issues with Groupon to be aware of:

1. Many small businesses have lost considerable amounts of money due to the deals that they have done. Groupon sales reps are not there to make sure that the deal is an ultimate success for your business’s long term future, only that the deals are sold at the best price and revenue split for Groupon.

2. While some companies have received decent terms from Groupon others have had a worse than 50% revenue share with the deal site.

3. Many of the customers are only there for the cheap prices and are not your customers, they are Groupon customers and will be purchasing another deal from another provider the next time they need the same product or service that you provide.

4. People will travel to your location for a great deal, but may never return due to the longer distance from their home.

5. It can cheapen your brand. Customers that know you and made a purchase through Groupon or Living Social may resist paying full price in hopes that you’ll do another super sale in the future.

There are other issues to be aware of such as brand control, customer satisfaction, upsetting existing customers who did not purchase the Groupon deal and many more. Unless your business really needs a last ditch effort to reach as many customers as possible, a different approach to customer acquisition would be best.

Find the right business partners that have your target demographic as their existing customers and create a joint venture marketing relationship that allows both businesses to equally benefit and grow rather than getting a daily deal site rich.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Reach New Customers & Potential Partners Through Existing Business

Small business owners that develop relationships with their best customers can receive excellent referrals in the form of new business as well as partnerships with other companies within the industry. Marketing can be very expensive and with limited budgets many small businesses can gain an advantage by tapping into the rolodex of their customers whenever possible. Many people that you interact with on a regular basis during your daily business activities will be more than willing to make an introduction or referral, but you have to ask. I’ve found that most business relationships can lead to at least a few new opportunities and sometimes many more so it’s wise to take the time for lunches, dinners, sporting events, rounds of golf, and other casual activities that can help build your ecosystem of business professionals willing to make introductions and referrals.

Develop Individual Relationships with Key Customers

Taking the time to build individual relationships with your best customers can be advantages for many reasons including; finding new clients, creating introductions to new business opportunities and gaining referrals that close. Every customer interaction is a potential link to a new customer so make sure you take the time to educate consumers about opportunities to make referrals and the discounts or cash payments they may receive for making an introduction or referral. A typical activity that should be done on a regular basis is to send out emails about product updates and new services that also mention the opportunity for making referrals to new customers.

It’s important that you are close with your key customers and business partners that provide the bulk of your referral business and this is best done in a setting away from the office or in traditional meetings. Key clients and partners should be wined and dined and taken care of based on the importance of the role they play in the growth of your business. There are many ways to show appreciation to a key person in your professional ecosystem. Business referrals and revenue shares are always appreciated and a great way to solidify a business relationship with a customer that helps expand your business. Additional methods for rewarding contributing players include; a nice lunch on your tab or maybe tickets to a sporting event that show your appreciation without having to directly dole out cash. Other gestures that can be much appreciated are gift certificates for nice restaurants in your local area or a weekend getaway at a nearby resort. Again make sure to reward your business ecosystem, but do so according to the value they provide for the growth of your businesses.

Ask for the Business

Many small company owners are fearful to ask directly for someone’s business when it’s actually the best way to do it. If you don’t ask, people will often think that you’re busy, have plenty of deal flow or not actively seeking new clients. Consequently the people that have great connections for you will simply not offer even though they are willing to help. Small business owners need to routinely ask customers and business associates for client referrals. By keeping a log of your communications with different customers and business relationships in your CRM system you will not need to worry about feeling like you are asking the same person too frequently. It’s critical that you remain in the forefront of your business acquaintances’ minds in order for them to remember you and your company when they interact with someone that could use your product or service. Send birthday cards, make occasional calls and drop by to say “hello” to key customers and people your business interacts with in order to keep those relationships fresh and relevant.

Every small business owner needs to maximize their business and customer relations in order to reach the next customer or next hot lead. Make sure to reward your ecosystem for providing quality leads that close and don’t be afraid to ask for business or client referrals.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Fix Small Business Joint Venture Marketing Problems Quickly

It can be impossible to stop unknown problems from occurring with a joint venture marketing relationship, but as a small business owner it’s critical to identify problems and either address them or take the appropriate actions to terminate the relationship and focus on more fertile ground. There are several critical areas of a business partnership to be conscious of at all times including: customer service and satisfaction, tracking referrals, accounting and revenue shares and promoting a positive brand image to the market in general. If an issue arises in any of these areas, it is absolutely necessary to spend the time to fix the root cause to eliminate it. Otherwise the right solution may be to simply identify new partners and move on.

Customers Satisfaction

At the end of the day it’s always about making sure that customers are happy and feel that they’re getting good value for what they are purchasing. Regardless, whichever side of the partnership your business is on it is critical to focus on providing great customer service. If you’re opening up your company’s rolodex of existing customers, you don’t want to jeopardize future business for yourself because the new JV marketing partner you’re introducing does not perform as expected. During the early stages of starting a new business relationship it is very important to test the waters early by referring a few loyal customers that will provide you with honest feedback about their experience with the new partner. Send over a couple of “new” leads as well and have a person within your organization act as the customer to get a real understanding of how the partner treats their clients. There is nothing worse than sending over a group of customers to a new partner only to receive emails and calls with negative experiences from those customers. This reflects on you as a business owner and can be avoided by properly implementing the new partnership.

Track Everything

Make sure that the partner is tracking referrals, new leads, products ordered, products delivered, products returned, marketing campaigns, ROI, brand reputation and any important data points related to your industry. It is very difficult to measure the true value of a joint venture marketing relationship without this information. You will have to rely on an open business partner to get many of those details and keep an open line of communication. By tracking everything related to each of your business partners it’s easier to accomplish the required accounting and to come to firm conclusions about which relationships are the most profitable and provide the greatest return. This will let you prioritize your time and resources for future activities and identify partners it may be better off to just walk away from. It is recommended that you monitor the market in general and understand what the market says about your business partners. As a business owner it can be very frustrating to have a partner do something unwise that creates a lot of negative press as this can reflect on your company, especially if you’re very active together with co-branded marketing.

Small business owners need to be prepared to spend the necessary time to monitor each business relationship and collect the required data during the month to accurately assess the success or failure of the partnership. When you identify a major issue related to servicing customers or accounting for the referrals that are being sent to a partner then set up a meeting to fix the issue as soon as possible or move away from doing business with the partner in the future. Allowing a negative partnership to linger just because you have already done all of the work to put the relationship together can be detrimental to the business and the brand for the long haul.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

What Should Be In Your Business Partner Training Binder?

When forming a new joint venture marketing partnership it’s always a good idea to put together a training binder that has information about your company, the products and services the business provides and key details that are relevant to the business partnership. Training a business partner to execute the partnership in the right manner is critical to successfully finding new clients. Here’s a short overview of the standard documents that should be included in a binder that is provided to your business partner.

A binder that is provided to key executives and the one that is handed off to a person that is just involved in one element of a business partnership should be adjusted accordingly, however it is important that key individuals have a clear understanding of your business and the details of the relationship.

Binder Documents

• Executives should have a copy of the partnership agreement included in the binder.

• List of contacts based on role within partnership. It is always good to have at least two contacts for each vital link inside of a business partnership in order to resolve critical problems when needed.

• Current and future co-marketing campaign budgets should be included depending upon recipient.

• Flow charts for exchange of data, client information, client referrals, sales information, customer service requests and any other specific part of business transactions that occur based on the joint venture. Only include what each party requires.

• Company information, basic overview of company.

• Product and Services information. In depth information about the company’s product and services, pricing, etc.

• Incentives. Depending on the role within the company each joint venture partnership should include bonus incentives for employees that perform and excel in their roles of executing a successful partnership. For sales organizations this may already be included however; other positions that require additional work to perform the new duties should experience rewards of a successful business venture as well.

• Additional document. Depending on the businesses involved there may be additional information that companies wish to share with each other including demographic data, client information, and many more details.

Be sure to use a cloud based document storage service and keep a copy of your training binder available for all parties that require it.

The training binder is intended to serve the purpose of reinforcing the partnership agreement and act as an implementation tool for kick starting the business relationship. When distributing the binder to the appropriate people there should also be a timeline of when activities will begin and the flow charts will be followed. Create a visually appealing template that can be used for that specific partnership and any new clients or businesses that join the partnership in the future. Take the time necessary to clearly write out the details needed in the training binder and the chances for success will increase.

A well trained business partner will understand your business thoroughly and be able to sell your company and its products or services to new clients, which is ultimately the point in creating a joint venture marketing relationship in the first place. A well trained sales team that has been provided the right information will always deliver better results than the sales team that is given minimal or incomplete information and asked to educate themselves concerning the company’s products and services. By training your partners in a consistent manner, even when personnel change occurs during the course of the partnership and it will continue to remain productive and profitable due to the core training you have in place.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Find New Clients for a Joint Venture Partner with Classified Ads

joint venture marketing

joint venture marketing

Finding new clients that can take advantage of an offering from a new joint venture partner can sometimes be a challenge. Posting ads on classifieds sites like Craigslist and BackPage.com can be a successful marketing strategy. It’s always critical to help drive immediate business for a new partner to demonstrate a commitment to the partnership. Classified ads can be an excellent source of new clients to refer over to a partner.

There are specific strategies required to implement in order to have a successful classifieds marketing strategy. Work with a designer to create attractive ads. For certain products and services it’s advisable to create specific landing pages to help educate the market. It’s recommended you create tracking mechanisms to ensure that data can be provided to the partner to show numbers of impressions and sales that result from classified ad campaigns to evaluate whether it is an appropriate channel for marketing the partners’ products and services.

Create a Killer Advertisement and Title

Working with a graphic designer to develop an eye catching ad is the most critical aspect of a classified ad campaign for attracting new clients. It’s always recommended that you use images in the ad, as this will capture the attention of anyone that clicks on the ad. If the person clicking the ad does not become instantly connected through the images then they will most likely continue searching and not even read the words on your advertisement.

A header that captures the reader’s attention and makes them ask a question that is then answered in the bullet points below is a proven strategy to drive click-throughs to learn more from your website. The goal of a classified ad should not be to fully educate the market about the product or service, but get them interested in learning more to lead them to the landing page that has been created. Include in any online advertisement the contact information that’s required to not only learn more information through the web in the form of a link but also a phone number or email address to get in touch directly with a sales representative.

A Landing Page to Sell

Create a landing page that has additional information for the potential new client to read through if they‘re interested in the product. A landing page can be a main website but generally for a joint venture marketing relationship it is best if a special landing page is created so it’s easier to generate analytic reports to provide to a partner, demonstrating the effectiveness of the marketing activities. Aside from core information required to learn about the product or service a contact form should be an important part of any landing page. The leads that are generated from a landing page can then be pursued in several different ways from a sales rep making a phone call to sending additional product brochures or promotions through email or physical mail.

Set a VOIP Phone Number for Each Campaign

Using a VOIP phone service from a company like 8×8 allows a business to set up different phone lines for each marketing campaign so it is easy to track phone calls that come through classified ad campaigns. VOIP phone lines are relatively cheap and it’s easy to associate a specific number for ads that go on Craigslist, Backpages or for any other number of classified sites.

Outsource the Posting of Ads

If the product or service can be sold in many different markets than it can become a very labor intensive job to post hundreds of ads a day that may be required to maximize the partner opportunity. Reach out to overseas labor that can post the ads and corresponding titles to the right categories. It may take a little bit of time to create the right posting team, but after they are in place it can be a long term lead generator for new potential clients.

Experiment with online classified ad campaigns to find new clients for a joint venture partner. This is an excellent way to consistently drive new leads that are actively looking for something new. If the campaign is set up correctly with tracking components built in, it is a great strategy to pursue right away with any new joint venture partners that have a product or service that fits with the categories of online classified sites.

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.

Discover more joint venture marketing Strategies join his free report on joint venture marketing.

joint venture marketing

joint venture marketing

Personal Introductions Attracts New Business

Joint venture marketing relationships are designed to attract new business and one of the best methods for reaching customers and closing deals is through personal introductions from a joint venture partner. These introductions can come in many different forms, but are based on the trust that exists between a company / individual and the customers. It should be the goal of every partner to leverage this trust as much as possible without crossing the line that damages the relationship to maximize a marketing partner. Depending on the partnership and the products / services that are being offered to the customers, the following three types of personal introductions will work, but one may be more effective than another based on the situation. It’s best to discuss the types of introductions that will be made while setting up a relationship with a new partner to ensure everyone is on board and committed to leveraging their trusted relationships to drive success for the partnership.

Personal Introductions – Face to Face

While a face to face meeting can be the most time consuming type of personal introduction and recommendation it is also the most likely to attract new business and result in a quick sale or at least end with the potential customer understanding the offering with any immediate questions answered. Meeting in person allows both parties to work closely to ensure that customers are satisfied and take an active role in creating a successful joint venture marketing campaign. Try and keep a face to face meeting to 30 minutes in length. Have marketing collateral that the customer can review at a later time if they have any questions. Always send an email after the meeting and CC the partner that assisted in setting up the meeting so that they are confident in the way that their customers are being handled and taken care of properly.

Personal Introductions – Sales Call

Setting up a sales team within a joint venture that will make personal introductions to an existing customer base will not only attract new business, but is an effective method of reaching many customers quickly and saving time for meetings with only the hot leads that come through the partners sales channel. Review the script that will be used for all outbound calls concerning the product or service, even if this is only a few lines for an introduction that is added into a sales person’s routine call for either new business or maintaining relationships with existing customers. If the message concerning the partnership opportunities is lacking the right hook then it will not be as successful in attracting new business so dedicate time to assisting a partner to craft the right pitch about a product or service.

Personal Introductions – Video Recommendation

While the two options above tend to be a much better solution for an introduction from a partner, sometimes a short video recommendation akin to a product testimonial from a joint venture marketing partner can be very successful at least as a supporting marketing tool to reinforce other marketing avenues. While having a person face to face or on a phone call to answer specific questions is valuable, a strong message of support from a CEO or other executive depending on the size of company can carry a lot of weight in customer’s eyes. These can be utilized as a type of validation and can be used in many different ways, even pointing non partner related customers to the video.

Attract new business utilizing a joint venture marketing partner’s ability to reach their customer base and capture their attention. Sometimes it will take many different methods to reach a customer or finally convince someone to make a call or request a meeting. It is best to have clearly defined the processes for implementing at least these three basic ways of gaining a personal introduction from a joint venture marketing partner.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Find More Clients Being Active in Local Business Communities

Small business owners can find more clients by becoming active members in the local business community, whether by joining a local business chamber of commerce or through industry groups, or just attending business social events and local trade shows. By interacting with local businesses a small business owner has the best chance at locating companies that can be excellent joint venture partners that are currently servicing their exact demographic. The following, highlights a few of the most important aspects of developing joint ventures through participation at local business community events.

Find Industry Groups / Business Owner Gatherings

Determining the type of companies and people that are required to develop the relationships needed to create successful joint ventures is the first thing required before identifying where to meet them. There are lots of places to find information about local business groups and trade shows for industry groups. A few Google searches for trade shows and a specific location will result in lists of venues and upcoming events. Attend relevant events that would be interesting for pursuing companies and individuals of interest to your business. One good source for finding local events is Meetup.com where there are plenty of business / entrepreneur focused groups where business owners get together to talk about business topics as well as industry groups that are interested in a specific niche, like software developers that get together to talk about industry topics.

Develop Relationships with Business Decision Makers

When at business functions and events as a small business owner it is best to focus energies on meeting and spending time talking with individuals that are decision makers. At business events and trade shows time can be wasted interacting with a sales rep that is just looking for sales opportunities. This can be good if there is an existing customer base for your business that aligns with their product or service, but if the desire is to locate new existing customers for a business through joint ventures, spending time with executive management is key and it’s best to avoid the typical sales rep just pitching products and services.

Establish Joint Venture Partnerships with Local Businesses

Reaching out to local businesses to become joint venture partners is a proven way to find more clients in a specific region. For most small business owners the focus is on servicing the local community with a product or service and so developing partners with other local businesses can quickly expand brand awareness to the right demographic of customers. Local business owners will be easier to develop relationships with regardless if a business is planning on only servicing a local region or planning an eventual national or global launch. It’s important that each joint venture is successful to build momentum in the market and maintaining strong communication between partners is more easily done when decision makers for each business are close enough to meet in person.

Don’t Sell – Find Champions Who Sell

When meeting business executives and business decision makers it is important to not spend lots of time selling a product or service, instead develop relationships with others that can become a champion for your product or service to their existing customer base which will lead to your business finding more clients. Build a personal relationship first even though attending business related functions, the business part will always come, but learn the kids and spouse’s names and other details through the conversation to be used in later conversations to develop a personal relationship with a potential business partner. By the time a partnership agreement is on the table and discussions about how to implement the marketing strategies for promoting the joint venture the terms will always be more favorable than if approaching joint venture partnerships from a strictly business perspective when dealing with local business owners.

Find more clients locally by becoming engaged with local business activities such as small business owner events, chambers of commerce, and other business related activities such as industry trade shows. These venues provide the capability to meet with local business decision makers and find individuals that can help really drive a successful joint venture marketing partnership for the long term.

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.

Discover more Joint Venture Marketing Strategies join his free report on Joint Venture Marketing.

Reasons for Joint Ventures During Uncertain Economic Times

When the economy is in a downturn there are several really good reasons for joint ventures as a way for a struggling company to get the little extra business required to stay afloat and live to do business another day. Joint ventures provide many opportunities for companies to grow into new markets, extract additional revenue from their existing client base, and develop a strong network of other businesses that can be relied upon for supporting their customers to ensure a high level of customer retention. During tough times people do not spend as quickly or freely as during good times and so it’s very important to do everything possible to service existing customers and make it as comfortable as possible for new customers to try a product or service for the first time.

Develop New Customer Acquisition Strategies

One of the best reasons for a joint venture during a time of economic uncertainty is the potential to acquire new customers. Acquiring a customer is expensive and time consuming and the beauty of joint venture marketing partnerships is the potential to market to a partners existing customer base a product or service. Gaining access to customer lists or the capability to have a logo and company description sent out from a V.P. of Sales to existing customers can be a make it or break it opportunity for a small business in a tough economy. If a product or service your company is selling fits well with a partners existing offering you might receive new sales and never have to touch the customer because the partner is handling all of the customer facing activities and delivering your product or service to them directly.

Earn Additional Revenue

Earning additional revenue from an existing client base is an excellent reason for joint venture marketing relationships to be established with companies seeking to market to the demographic of existing customers. During tough economic times companies might be willing to negotiate better referral fees and percentages of revenue for each closed sales lead increasing the value of the partnership. Most small businesses are not servicing their customer’s entire needs and so it’s easy to identify at least 3 or 4 great potential partnerships that could support customers’ needs and put money in the company’s pockets simply for making products and services available to the company’s customers.

Create a Strong Web of Support

It is vital to create strong network of partners during a tough economy. It’s important to remain active pursuing the best and most attractive joint venture opportunities. Companies do fail during bad economies and so it is imperative that if a business has an important joint venture partner that is supporting its clients and putting money in its bank account that there is a backup plan in case a partner goes out of business. While it may not be the number one reason to continue to pursuing joint ventures during tough times, if a company that your business has a relationship with fails, it’s important to be able to quickly replace them with a new partner and promptly provide customers the confidence needed to not jump ship. Failing to not have a backup plan in place for servicing client requirements that are supported by joint venture partners is a big problem, but can be resolved by creating a strong network of associates and even partners that are in place, but not yet fully active.

There are many good reasons for joint venture marketing in a tough economy as well as during good times. Focus on developing strong JV partners to limit potential risks that may occur during a down economy and make sure to continue to track down new opportunities. Every joint venture partner is a new potential channel to acquire fresh customers and at the same time is an opportunity to gain additional revenue from an existing customer base.

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 report on Joint Venture Marketing.

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