Pitfalls In Joint Venture Marketing – Are You Prepared

Pitfalls In Joint Venture Marketing – Are You Prepared?

As in any business strategy, there are pitfalls in joint venture marketing. Many people suffer huge losses in joint venture dealings, simply because they don’t know how to go about it in the right way. Joint marketing involves much more than just finding the right partner- you need to make sure, you have a full strategy mapped out, from beginning to end.

Who Are You Dealing With?

Admiring a company from the sidelines is one thing, but going into partnership with them is a completely different story. A number of pitfalls in joint venture marketing occur because people don’t research their partner company’s product or services. Many people have ended up promoting low-quality products along with their own and losing valuable business. What’s worse, they usually find out about it when it’s too late.

It’s imperative that you test the partner company’s product yourself. Is this something that you feel comfortable endorsing? Does the product live up to its promises? If the company won’t give you a sample product to test, then just walk away. This is the easiest way to avoid one of the most common pitfalls in joint venture marketing.

Let’s Work Together

A number of pitfalls in joint venture marketing happen because there’s no clear-cut strategy. It’s not enough if you just brainstorm great ideas- you need to sit down and work out a plan. Make it as detailed as possible to avoid problems later- make sure that your project has a definite starting and ending date. Be clear about what methods are going to be used, especially in terms of promotional tactics and advertising. If you are new to joint ventures, it makes sense to start with a short-term project first. In this way, you’ll be able to assess whether your partner and your strategy are worth a longer investment.

Stinginess is another cause of pitfalls in joint venture marketing. It’s natural to feel a little apprehensive about going into business with someone else. Nevertheless, you won’t help matters by offering a weak deal to your partner. Remember that you’re not doing anyone a favor by going into partnership with them. Putting a robust deal on the table shows the other company that you’re serious and are willing to make this worth their time. Conversely, don’t be too generous with your resources. Joint ventures involve sharing, not blindly handing over everything you have. With an online business, be especially careful about your mailing lists. Not only is this valuable to you in terms of leverage, you could be in breach of contract if you’ve already given a privacy promise to your clients. Finally yet importantly, make sure your agreement has an exit clause. If the arrangement doesn’t seem to be working out, there should be a way to end things amicably for both parties. With a little research and common sense, you can easily avoid the pitfalls in joint venture marketing.

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