This weekend I have been reading about Joint Ventures. The more I read about this the more excited I got. The potential is truly unbelievable.
Think about it. Let’s say there is a business that doesn’t have a list but they have a product and there is another business that has an extensive list but they do not have this product. The product is something that a fair number of people on the list would be interested in. The two businesses work out a deal where the business with the list emails about the business with the product. They work out an equitable percentage of sale for each business. Assuming that it is a good product, it is a win-win-win situation. Both companies and the customer benefit from this partnership.
Let’s look at it a different way. Let’s assume that the product is an ebook so there is really no cost to reproducing it. The ebook is going to sell for $30. The company that has the list has approximately 30,000 names they can email. Analysis of the customer list shows that approximately 20% of them would buy this ebook. That’s 6,000 sales from this list. At $30 per sale, total revenue would be $180,000. If the deal that was made between the two companies was a 50/50 split, each company made $90,000. The best part of this scenario is that there wasn’t much effort or cost involved for either party to earn this type of income.
This could then be taken a step further by recruiting affiliates to promote this product as well. An affiliate would more than likely expect 50% of the revenue in return for their promotion of the product. Each company would make 25% of all the affiliate sales. Depending on the number of affiliates you are able to recruit and the size of their lists, you could increase sales by a very large amount. Let’s assume that the affiliates were able to sell another 6,000 copies of the ebook. Each of the two companies would receive an additional $45,000. That’s a total of $135,000 for each of these companies and $90,000 to the affiliates.
Again, assuming that it is a good quality product (and it needs to be), everyone in this scenario wins.
What kind of partnerships could your business develop? How much would you be able to increase your revenue? Have you started your list yet? Visit our “store” page to find products to help you get your list started today.
Photo by IQoncept
