Joint Ventures - One of the fastest and most profitable ways to skyrocket your online sales ...
A joint venture is a business and intellectual property development strategy whereby an existing company effectively co-manages a new yet to be developed market opportunity. When it comes to jv relationships, there are two types of agreements; limited partners or joint ventures.
In the first type of agreement, the entity takes on a financial investment in exchange for voting rights in deciding certain matters regarding the project. In effect, they become "co-owners" with minimal equity contribution due to their lack of ownership (limited partnership). The other type of JV agreement is when two companies merge into one joint venture called an "associate company. In this instance, you will see equal percentages of the venture shares held by each component.
The secret to successful JVs is having a written agreement outlining each party's role and responsibilities. Both parties should have equal rights to revenue opportunity, marketing and sales resources, as well as decision making powers for both the long-term success of the relationship and the development of new products or services that can be used to further expand market share. This can only take place if there are creative ways for both companies to make money off each other - otherwise, it's not a joint venture but simply a partnership.
There are certain precursors that must be in place before entering into a joint venture. For example, both parties must have a common goal and interest in the outcome of the joint venture. Second, each party must clearly understand their role in the jv relationship and how they both benefit from each other's contributions. One party cannot benefit more than the other or else there will be one unhappy member which can ultimately lead to the dissolution of the union.
Joint ventures are a way for companies to quickly expand their business. It allows them to grow without having to waste time and money starting from scratch on research and development or creating new products for niche markets. Like marriage, however, it is important to choose your partner wisely. If the chemistry and fit isn't there or one party feels as though they are being taken advantage of, you have a failed jv. The key to success is to choose someone who shares similar goals and objectives as you do. For example, if you're looking for a partner who can provide valuable services in the medical industry and have expertise in distributing over the internet, find someone with these skills that will complement your business model rather than competitively undermine it.
Joint ventures are ideal for niche markets where there is little or no competition. Working with another company with related products or services allows you to reduce marketing costs, pool ideas and resources and reach a broader client base. One great feature of a joint venture is that it can be relatively short term (in some cases) or long term if both parties agree. This means that you don't have to stay in the union for one set length of time; instead, you can exit the agreement based on certain predetermined guidelines outlined in your contract.
An ideal JV partner should offer something different than what you are currently selling. If this isn't the case, then there is little reason for your companies to merge into one entity. The bottom line is that you both need to benefit equally from the union.
Joint ventures are one of the fastest and most profitable ways to skyrocket your online sales. Put simply, it's a win-win situation where two companies merge into one and work together as one entity in which both parties benefit in revenue sharing. All successful joint ventures follow a certain criteria, however, so make sure you understand exactly what role each company will play before entering into an agreement. If you do this right, you should see positive results from your efforts and the jv relationship will turn out to be one of the best business decisions you have ever made.
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I'm a writer, marketing consultant and entrepreneur. My passion is helping clients increase revenue without spending more money. I have been running successful businesses online for over 15 years and have helped hundreds of businesses grow their revenues to the next level through strategic internet marketing techniques. If you would like to learn how to increase your online sales with less effort, contact me for a FREE consultation. Today! http://www.Online-Business-Courses-LTD.com
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Conclusion
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Joint Venture: Two Heads are better than One by Michael J. Ellsberg
If you want to succeed at business, you need to be a joint venture expert. This is the only way to increase your lead flow and double your sales. If you don't know what a joint venture is, this article will explain all the details - including 9 benefits of JV's and why joint ventures work - as well as how to get started in less than 24 hours. Just imagine having two or three marketing machines working for you instead of just one!
"Two heads are better than one.