Joint Ventures: How To Gain $3.4 Million Of Goodwill In 30 Days - Part 4
Here's the rest of the story of how a True Value Hardware store used a joint venture:
Then Chris worked the back-end of his customer list. Every two weeks, he sent a 4 page newsletter to everyone on his customer list (which had added a couple hundred people by now). Each issue contained a feature article about one of the businesses that was a participant in the service center. The best part was that the featured business paid for the mailing - and Chris still got his percentage from each resulting sale.
Chris leveraged the entire operation of over 30 businesses. In essence, he became a landscaper, a drywall technician, a carpet cleaner, a fence builder, etc. without having to make an investment in those areas. His customers wanted those products and services and they trusted Chris' judgment. If Chris said these were the companies to do business with, they were going to listen to his recommendation.
The participating companies leveraged Chris' entire customer list by entering into the joint venture. Basically, they paid $50 plus a percentage to gain over 1,600 customers who would use them in good faith. Now that's leverage!
There are thousands of ways to construct joint venture deals. You have to be willing to actively pursue and put together deals. When you present another business owner with a proposition, your approach is all-important. Just like all good marketing efforts, you want to preach benefits to him immediately. Don't just go up to him and say "Will you endorse my product to your customers?" You have to paint the picture first. You have to help him understand how it works. Not everyone understands the dynamics and leverage like you do.
This concept can be applied to almost any kind of business successfully. We've used joint ventures with retail, business to business, consultants, professionals, and any other business you can name.
For more information
SUBSCRIBE to our new weekly marketing newsletter.
Maximum Marketing Leverage with Joint Ventures (Part 4) - Adult B2B Marketing Tip
Linear Mode
