Simple Endorsed Joint Venture That Any Business Can Execute
September 28, 2008
At the end of this short document are the five steps you need to go down to start you on the road to joint venture success. Please don’t jump there right away because you don’t want to miss out on some of the nuances.
Supposing you had a product that sells for $97 on how to have a better relationship with your teenage children.
You get hold of a good list broker and purchase or rent a list of 10,000 contacts. You then craft a sales letter that explains your product and why people should buy it from you. You send out this letter to all the people in your database.
You find that you convert 2% of people into buying your product using this letter and approach. Two percent multiplied by 10,000 names equals 200 orders. 200 Orders which retail at $97 is a gross profit of $19,400
Do you think that a 2% response is a bit on the small side? It is in fact pretty good as far as it goes but could it be a lot better? Think about this for a second, the people don’t know you, they know nothing about your business, they probably don’t know anything about your product.
In short, they are concerned with being ripped off - Is there a better way?
Cold mailings are never going to be that great because they don’t trust you. Here is how you could improve it.
Just supposing you found an owner of a similar list who often contacts his subscribers and has a good relationship wit them. Imagine what would happen if this person wrote a to his subscribers and mentioned how great your product is and what a great person you are.
What do you think would happen to the conversion rate?
There is every likelihood that this type of endorsed letter is going to get a far better response rate than a cold list. The reason is simply that these subscribers trust the person who is endorsing you so the trust is transferred to you.
If your Joint Venture endorsement has been properly thought through there is a very good chance that you will get wa more than a 2% response rate. If your conversion rate only increased from 2% to 6% (a three fold increase) just imagine what that could do to your bottom line. Think of your bottom line, even if it only increased from 2% to 6% that’s a 3 fold increase. So instead of $19,400 you are now getting 6% of 10,000, multiplied by $97, equals $58,200 gross profit.
If you doubt these results then consider this. Run a small test of say 1000 names from a cold list and then compare what happens when you work with a Joint Venture partner who endorses you.
Step 1 - Identify who you are targeting (type of customers)
Step 2 - Find a Joint Venture partner who already has a relationship with these types of customers.
Step 3 - Agree a % split of the profits
Step 4 - Do a small test endorsed mailing
Step 5 - Do a small test to a cold list (same No’s and customer profile)
Compare the two results. There is a very good chance that the joint venture endorsed mailing did far better and brought in more profit.
Now work out which one generated the most profit, repeat it and smile, as you make more profits in less time and at a lower cost.
Have fun with your next joint venture