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.

Amazingly you find that your letter pulls in a 2% response, in other words 2% of the recipients decide to buy from you. Lets do our sums; two percent multiplied by 10,000 prospects equals 200 orders. This gives us 200 Orders which retail at $97 or a gross profit of $19,400

Is a 2% conversion a bit on the low side? It is in fact pretty good as far as it goes but could it be a lot better? Lets pause for a moment; the people you have written to don’t know anything about you, they know nothing about your business, they may have never heard of your product before.

In short, they are concerned with being ripped off – Is there a better way?

Sending out a cold mailing like this is not normally going to work very well 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.

Do you think the response rate would be higher?

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. So instead of $19,400 you are now getting 6% of 10,000, multiplied by $97, equals $58,200 gross profit.

If you are incredulous about the increase then please try it out yourself. Here is what you could do; Test 1000 names from your cold (list broker bought) list and then analyse the difference when a joint venture partner 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.

All you need to do is repeat and leverage the one with the best results and you will make more money in less time.

Have fun with your next joint venture

No related posts.