The Pitfalls of Joint Ventures and How to Avoid Them
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Business > Joint Ventures
Nov 28, 2007
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The Pitfalls of Joint Ventures and How to Avoid Them
Like most marketing strategies, Joint Ventures aren't without some risks. Some of these risks include wasting your time, achieving no significant results and the loss of your credibility. Still, the rewards far outweigh the risks if you understand the main pitfalls of Joint Ventures and how to avoid them. With a JV, you're working with people, not systematic advertising mediums like pay per click. Taking into account that human factor is the key to JV success. Many alliances fail because of selfish attitudes. The first step to avoiding this pitfall is a personal willingness to give of what you have for the good of the project. Share your information and resources and focus on how the alliance will benefit your partner. Be prepared to give in order to get. Alliances also fail because of divergent goals. You may be focused on increasing the long-term lifetime value of your customers while your partner is more interested in new customer acquisition. This "clash of cultures" could doom your working relationship. Your goals don't have to be identical, but you do need to be able to work together for a common purpose. Even if you do have selfless attitudes and similar strategic goals, the partnership won't be successful if either person lacks trust in the other. A JV only works if a mutual trust and a sincere desire to move forward together exits on both sides. If you find yourself questioning your potential partner's motives, don't do business with that person regardless of how much traffic he may be able to generate for your website. The best way to avoid these mistakes is to not rush into any JV opportunity. Taking time to plan the project will give you a chance to get to know your partner and develop that necessary trust. In the planning process, each person needs to understand how much they have to gain from partnering-or lose by not working together. You can help your potential partners understand the benefits of working with you by asking and answering the following questions of yourself before approaching anyone with a JV idea: --What is it that I sell, and how do I currently reach my target audience? --Who is my competition? What do they offer their customers that I don't? --Am I willing to combine resources? Or would I rather work alone? --Do I know anyone who has participated in successful Joint Ventures that I can talk to and learn from before entering a JV partnership of my own? --Do I already know someone who would make a great partner? --Who can I partner with that will enhance my credibility? --What are my strengths and weaknesses? --What opportunities and threats exist in my target market? --What unique knowledge, experience or resources do I have to offer? --How would my competition benefit from doing business with me? --What are my goals? Do I want to generate traffic to build my list, increase my profits, offer more diverse products, reduce my competition or extend my market reach? Once you know the answers to these questions, you're ready to seek out trustworthy partners and start negotiating deals.
Glen Hopkins is a Best-Selling Author, Information Marketer, Speaker and Consultant. Glen specializes in teaching struggling entrepreneurs how to turn their small Online businesses into thriving money machines using specific systems that will allow you to work less and earn more. Get his List Building Report and Web Traffic CD (valued at $97) for FREE at: http://glenhopkins.name/>http://GlenHopkins.name
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