It's Wednesday, and you know what that means. It's time for another weekly Internet Business Fortune Cookie.
Tomorrow is Thanksgiving, and I am actually at my parents home in Houston, TX at this very moment. I have a lot to be thankful for — so much so that it is hard to make a list. I was thinking about that today and I suddenly realized that I have never had any turkey-based Chinese Food. Why is that?
A quick trip to Google to search for “turkey Chinese food” reveals information about Chinese food in the country of Turkey, but little information about Chinese food containing turkey. Naturally, my next thought was to dominate the “turkey Chinese food” niche, but I don't see any AdSense ads on that page. Guess I'll hold off on that site for the time being.
This week The Cookie has come out on the side of the value of Joint Ventures in Internet Marketing.
Hear The Cookie:
“Take a trip with a friend.”
Of course, the fortune cookie is obviously referring to the fact that some of the most successful Internet businesses these days rely on joint ventures. Joint Ventures (or JVs as they are called) are business arrangements where two or more parties get together to deliver a product and share the profits.
Why Do Joint Ventures?
The best reason to do a joint venture is to leverage unique talents of individuals. Let's say you know how to write killer code, but you are not sure what to write. Another guy has a great idea but neither one of you has any marketing savvy. The two of you team up and find a marketing guru with a list of 100,000 hungry buyers. That's a joint venture. You share the profits according to some prearranged split.
The awesome thing about JVs is that you can often achieve something much greater than the sum of the contributions by leveraging each others talents. That can mean more profit all of the participants.
Three Tips For A Successful Joint Venture
Here are three things to keep in mind when doing a JV.
- Communicate clearly. Everything from financial arrangements to schedule and quality expectations. Misunderstands and arguments are a leading cause of JV failure and disappointment.
- Know the law. I am not a lawyer, and I do not play one on TV. However, I do know that you need to be very careful to understand the difference between a Joint Venture, a partnership and other business arrangements. If you do it wrong, you could be held liable for goofy stuff that your JV partners do without your permission. Consult your attorney.
- Be honest and fair. Treat your JV partners the way you want to be treated. Expect a long-term business relationship, and behave accordingly. Care what they think, and listen to what they have to say.
Bottom line as always is listen to the cookie. A JV can be a great way to jump-start your business.
Have a great day.
Be sure and check out our previous Internet Business Fortune Cookies.