joint-venture-marketingAs with most things in life, when you know what your goals are, then your chances of success improve. Having the right approach to joint ventures is essential. It can’t just be about benefits to your business.

It needs to be a win-win for everyone involved. Know what you want to get out of it – the answer to that is usually new customers.  But also know why the other business would be interested in partnering with you.

What can you offer that their customers would want or would enjoy?

Setting up Successful Joint Ventures

Your primary goal with a joint venture is to use other businesses to help you spread the word about your offers in a positive way. If you share the same target market then you should be able to do the same for them. Throughout the centuries the most powerful marketing tool has remained referrals or what’s often known as word-of-mouth marketing.

When you partner with other businesses this is what you want them to do for you. It shouldn’t just be the same as a listing. The referral should carry some weight.

Think about it, if you are in a bridal boutique there may be a directory with a number of photographers. They may all appear to be good, but you really have no way of telling. It’s just a list of names. But if the boutique offers you a voucher with a free photo consultation or trial photo shoot you have an incentive to choose that photographer. It is not just because there is a free offer.

More likely it is because the bridal boutique is making a recommendation. Most businesses will not refer someone they don’t trust as it will reflect badly on them.  Customers know this, so are far more likely to go with someone who is recommended.

This is your goal with a joint venture. You want your joint venture partner to recommend your business because they genuinely believe in the value that you can offer their customers. It should never appear that your joint venture partner is simply offering something to customers just because they are getting something out of it.

The joint venture partner’s goal should be to build customer loyalty. They would be using the incentive to say thank you to their customers or to provide them with added value. Remember it needs to be a win-win situation for everyone.

Goals for Joint Ventures

  • Expand your client list by partnering with other businesses
  • Offer something of value to your customers and to theirs
  • Offer incentives for joint venture partners to refer business to you
  • Build your business reputation in a positive way
  • Improve customer loyalty and your business network
  • Use your marketing budget more effectively
  • Grow your sales through word-of-mouth referrals

A joint venture is a great way to source new customers without it having to cost you much. If done properly, it can lead to an extensive business network that continually refers new business to you. Be clear in what you want to achieve from a joint venture and it’s the first step to growing your business more effectively.