When it comes to setting up joint ventures, business owners often stay sceptic about the profitability they could derive from it. Marketers have a number of misconceptions about joint ventures and the way they work in promoting any business. These misconceptions often owe to lack of clear knowledge about joint ventures.
Besides, the use of joint ventures is often confused with a couple of other marketing tools. Generally, joint ventures are confused with ad swaps as well as affiliate marketing tactics. Such confusion perhaps holds many businesses back from harnessing the benefits of joint ventures per se.
While ad swap and affiliate marketing are focused marketing tactics used by a company alone, joint ventures include economic collaboration among two or more firms to market the products and services of partner companies in a more lucrative as well as effective manner. Like other marketing strategies, though the purpose of joint ventures is to market the businesses well, but it differ a great extent in terms of involvement of the companies.
In order to use the joint venture tools effectively, it’s imperative that you must understand the difference between other marketing strategies and joint ventures clearly. For the purpose, let’s elaborate these marketing strategies individually to have better insights into it.
* Affiliate Marketing – Affiliate marketing is the simplest to pitch of the three marketing techniques discussed above. This form of marketing includes and advertisement or a notice having a link to your business proposal. Subsequently, in involves generating an appealing sales letter to lure your potential business partners familiarizing them with the incentives they would get for selling your product.
The link available with the sales letter direct the intended affiliates to the home page of your product, where they get the opportunity to register for the affiliate services. Through these letters try to encourage the affiliates to send you their email address and first name so that you can send them a small sample of your product.
* Ad Swaps – This includes some higher degree of involvement than that of affiliate marketing. In this method, you simply require your product to be recommended by someone who owns a quality list and in turn offers you a comparable product for your list. This technique, however, is good for upgrading your list rather than selling goods.
* Joint Ventures – This marketing tool differs starkly from the two methods discussed above. It includes more involvement and dedication from marketers. In this method, the firms collaborate to undertake the task of business promotion and expand reach to a much wider customer base. This form of tool also helps you to invite your partners to collaborate on some productive project.
Joint ventures further help you in monitoring the cash flows on any project and empower you to counter any sort of economic situation more effectively. You can harness the full potential of your business by assigning roles to your partner firms and can use their expertise in growing your own business.