How to Start a Niche Business on the Internet

How to Start a Niche Business on the Internet: A Few Fundamental Rules of Joint Ventures

How to Start a Niche Business on the Internet: A Few Fundamental Rules of Joint Ventures – There is an established etiquette to setting up joint ventures.

Rule #1 – Give More Than You Receive

First, if you are the one approaching with the proposition, you need to structure the deal such that you give more in value than you receive.

This doesn’t mean that you offer your partner $1,000 in exchange for $500. It’s not about giving him the upper hand in a way that is detrimental to you.

It simply means that you create more in equivalent cash value than you take.

Let’s say that you offer your JV partner access to your opt-in list in exchange for a reduced rate on his copywriting services. His standard rate is $3,000 per letter, but he’s dropping the price down for you to $800.

In return, you send him your leads. The long-term value of those leads to his bottom line is $25,000.

So, you just gave him $25,000 for a $3,000 sales letter! But only $800 in real cash left your pocket – and that’s alright, because  the letter he wrote for you improves your conversion rate, bringing you an extra $15,000 in profit.

You gave more than you received, and you still came out ahead.

Rule #2 – Partner with Complementary Businesses

Always look at complementarily and relevance when choosing a partner.

• How likely are your customers to be interested in your partner’s products or services? How likely are his customers to be interested in yours?

• Do you and your JV partner share anything in common? Say, a similar sense of mission or purpose? An equal devotion to building strong customer relationships?

The most important thing is that you and your jv partner share a market with overlapping interests, while not providing the exact same product or solution to that market (in competition).

You sell gourmet Indian spices + your partner sells an Indian cookbook = complementary

You sell the ultimate cure for back pain + your partner sells pain-relieving skin cream = not complementary

(Sure, you’ve both got different solutions for pain. But yours puts the other guy out of business!)

Rule #3 – Always Formalize Agreements in Writing

Joint ventures can be very exciting, but don’t leave yourself in the lurch legally by relying on verbal agreements. Things can and do go wrong.

People back out of promises for various reasons. One partner could suffer a financial set back or illness. You could lose your business data in a hard drive crash.

It’s important to outline the responsibilities of each partner to the agreement:

• What is their role?
• What are they providing in terms of time or money?
• How long will the partnership remain in effect?
• Under what conditions might it be terminated?

You need to get all of these things in writing, in a formal contract, signed on the dotted line. Your best bet is to hire an attorney to draft the agreement.

Your name and email will Never be shared, sold, or given to anyone.

Regards, Coyalita

Copyright © 2022 U.S.A. Ads All Rights Reserved

Leave a Reply

Your email address will not be published. Required fields are marked *