Joint venture marketing can be a highly effective way to expand your business and draw customers to your website.
How you go about this relationship can take a variety of forms, from a formal business arrangement complete with a contract, or an agreement that centers more on endorsements. Either way, a joint venture enterprise is where two or more companies or businesses get together to pursue a mutual interest of expanding their niche. Your business may be successful, but perhaps you have hit a plateau with your products and customers, and need to find a way to expand to continue to gain new business. Forming a joint venture marketing partnership or merely making agreements with new companies to sponsor endorsements can be a way to breathe new life into your business and give you the competitive edge that you seek to continue to get ahead.
Joint Venture Marketing and Relationship Marketing
Joint venture marketing is actually a subset of the relationship marketing philosophy. If your company follows a relationship marketing platform, customer relationships are at the forefront of your businesses concerns. Relationship marketing stresses the importance of strong customer relationships as a way to sustain repeat business, which is one of the main strongholds of a successful company. If you have a large customer base of repeat business on which you can consistently count, this will cut down on the time and resources that you have to put towards gaining new business. Thus, a solid portion of your quarterly sales are somewhat secure and reliable.
Joint venture marketing keeps customer relationships as an important tenant, but the relationships on which a joint venture marketing agreement will focus is on business to business relationships. Joint venture marketing concentrates on making connections and building relationships with other business owners, as a way to facilitate further expansion, and ultimately lead to more sales.
Partnerships and Endorsements
This marketing arrangement can help you expand your business into areas that you’d not previously explored or had exposure to, and do it in a way that more reliably ensures your success in these new markets than if you were to reach out to these new niches on your own. In a joint venture marketing agreement, whether you opt for a formal partnership or a more informal endorsement arrangement, you will be reaching out to clients where your joint venture partners already have a presence and a solid reputation. This cuts down on a portion of the risk associated with approaching new clients and expanding your business.
Think of it as a recommendation from a friend-if you need to buy a sofa, and one of your friends, business associates or even just an acquaintance suggests a great sofa shop, you are more likely to buy from that shop because of the mutual endorsement from someone you trust. Joint venture marketing works exactly the same way-establishes businesses will recommend your products and services through a variety of mechanisms, as you will do for theirs, thus increasing exposure and potentially gaining new clients for all parties.