Creating a home based business online can be a daunting prospect at the best of times. But now you can see the light at the end of the tunnel because you’ve created your website, decided on a product or service to promote and you have you’re Internet marketing plan in place. As an integral part of that marketing campaign you’ve decided to enter into a joint venture. For the uninitiated what exactly is a joint venture?
According to Wikipedia a joint venture is a legal entity formed between two or more parties to undertake an economic activity together. The JV parties agree to create, for a finite time, a new entity and new assets by contributing equity. They then share in the revenues, expenses, and assets and “control” of the enterprise. There are many benefits associated with JV contracts for both parties but for the home business owner these are the top ten advantages offered by the business relationship:
1. You can build long lasting relationships with other business owners. When entering into your first JV partnership you’re venturing into unknown waters so to speak. As a result you must stick with it for the duration as outlined under the terms of the contract before passing judgment on the outcome. If the results are positive for both parties you can end up having a life long association with the other business owner which can present other opportunities to your home business, such as having other business prospects pointed your way.
2. As a result of this association your product will be exposed to a whole new market via your JV partner. The other business owner will be advertising your goods to his or her audience while you will reciprocate. This will result in increased traffic to your website which will help build your contact list and will also boost sales.
3. Because of your extensive research of the partnered company you have found a highly respected and very credible entity with which to do business. Being associated with such a respected organization can only result in your home business being perceived as a trustworthy and credible enterprise. This is a very big advantage for a new online business venture looking for an identity online.
4. Many home businesses just beginning on the web usually don’t have a lot of capital to spend on marketing. Therefore a joint venture marketing campaign makes a lot of sense because you can establish this type of relationship for little or no investment. This provides the opportunity for a very large profit margin while saving you money which can be directed to other areas of your Internet marketing campaign.
5. Since the JV business will be advertising your product as well your exposure will increase markedly with little or no expense to your business.
6. As a startup company on the web this affiliation can get you through many of the growing pains experienced by most new entities online. Many new businesses on the Internet experience financial setbacks, exposure issues, traffic challenges and as a result low sales and little revenue. A joint venture can get you over the startup hump so to speak and set you down the road to online success.
7. Being partnered with a well established company on the web can also help you compete with more experienced Internet businesses right out of the gate. This is another big plus just starting out because operating on your own makes it very difficult to compete with, and or defeat, the more well established enterprises online.
8. Your current customers and your potential clients will appreciate the new liaison because they will inevitably have a wider range of products or services from which to choose. This can have the effect of making your home business more popular which can result with your current customers recommending you and your business to people they know. Word of mouth advertising can be a very effective Internet marketing tactic for driving traffic to your website.
9. Joint ventures are a great way to expand and grow your home business in a very short time period. Again this is a big help for a new venture on the web because it assists with the development of your product offering and your online presence.
10. A series of successful JV projects can make you very successful very quickly. In other words you can become incredibly rich which will make you an extreme force to contend with online.
As you can see joint venture marketing can have an incredible upside for all involved with very little risk and the potential for great rewards.