Five Small Steps For An Easy Joint Venture

Easy Joint Venture

At the end of this short document are the five steps you need to go down to start you on the road to easy  joint venture success. You may be tempted to jump to the bottom of this post read the five steps but I would encourage you to understand what is happening at a slightly deeper level.

Supposing you had a product that sells for $97 on how to have a better relationship with your teenage children.

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You get hold of a good list broker and purchase or rent a list of 10,000 contacts. You then craft a sales letter that explains your product and why people should buy it from you. You send out this letter to all the people in your database.

Amazingly you find that your letter pulls in a 2% response, in other words 2% of the recipients decide to buy from you. Lets do our sums; two percent multiplied by 10,000 prospects equals 200 orders. 200 Orders which retail at $97 is a gross profit of $19,400

Is a 2% conversion a bit on the low side? It is in fact pretty good as far as it goes but could it be a lot better? Lets pause for a moment; the people you have written to don’t know anything about you, they know nothing about your business, they may have never heard of your product before.

In short, they are concerned with being ripped off - Is there a better way?

Sending out a cold mailing like this is not normally going to work very well because they don’t trust you. Here is a way to improve it.

Just supposing you found an owner of a similar list who often contacts his subscribers and has a good relationship wit  them. Imagine what would happen if this person wrote a to his subscribers and mentioned how great your product is and what a great person you are.

What do you think would happen to the conversion rate?

The chances are good that the letter endorsing you will achieve a much better conversion percentage than if you used a cold list. The reason is simply that these subscribers trust the person who is endorsing you so the trust is transferred to you.

If your Joint Venture endorsement has been properly thought through there is a very good chance that you will get wa more than a 2% response rate. Think of your bottom line, even if it only increased from 2% to 6% that’s a 3 fold increase. Think of your bottom line, even if it only increased from 2% to 6% that’s a 3 fold increase. So instead of $19,400 you are now getting 6% of 10,000, multiplied by $97, equals $58,200 gross profit.

This outcome may surprise you and you may even have doubts it would really work. Here is what you could do; Test 1000 names from your cold (list broker bought) list and then analyse the difference when a joint venture partner endorses you.

Step 1 - Identify who you are targeting (type of customers)
Step 2 - Find a Joint Venture partner who already has a relationship with these types of customers.
Step 3 - Negotiate a % split of profits
Step 4 - Do a small test endorsed mailing
Step 5 - Do a small test to a cold list (same No’s and customer profile)

Compare the two results. There is a very good chance that the joint venture endorsed mailing did far better and brought in more profit.

Now work out which one generated the most profit, repeat it and smile, as you make more profits in less time and at a lower cost.

Have fun with your next easy joint venture.

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