Joint Venture is a term used when two or more business owners get together on a single project to help build their respective businesses. Joint ventures aren’t something new but in the online world in the Internet Marketing niche I believe many aren’t doing them correctly.
An off line example of a joint venture might be a sports show. You have RV manufacturers represented but you also have fishing gear, hunting gear and accessories and equipment for almost anything sports related.
This type of joint venture is good for all segments of the industry because the products compliment each other without directly competing with each other.
Let’s look at an example of an online joint venture that is currently very popular and, in my opinion, is being run all wrong.
This is where a group of Internet Marketers get together to give away various products to build their subscriber base for their newsletters or ezines.
The problem with this is these marketers are usually competing with each other selling either the same products or very similar products. For the giveaway they join forces to bring in hordes of people to gain subscribers BUT these subscribers all come from each other’s lists.
This type of joint venture does nothing but dilutes customer loyalty and increase information overload.
After the consumer downloads 5-10 gifts from the giveaway, they are going to be receiving newsletters from you plus the 5-10 other marketers that provided a gift.
How long do you think it’ll take them to start deleting emails and unsubscribing when they start receiving multiple messages with the same or similar subject lines, information or offers?
These marketers are unknowingly hurting their businesses by sharing their customers with a direct competitor.
To use an analogy, let’s say you are fishing a medium sized pond that used to feed you well. You shared the location of that pond with some of your friends and they started fishing there too. These friends told other friends so even more fishermen started fishing in the same pond. Even though the fish are breeding, there is no way you will be able to catch the number or quality fish you caught before your secret became common knowledge and was over fished.
The only solution in fishing is to find a different pond. You may have to change the way you do Internet Marketing and/or start from scratch if you choose to joint venture the wrong way or with the wrong marketer.
Last 5 posts in Business Success
- 3 Types Of Additional Income Streams For Local Business - June 17th, 2017
- Does Your Local Business Have A Residual Income Option? - June 3rd, 2017
- 5 Mistakes Local Business Startups Make - December 31st, 2016
- How Reputation Marketing Can Help Your Local Business - September 24th, 2016
- 3 Mistakes Consultants Make With Business Owners - September 10th, 2016