Joint Ventures or Maybe Not
December 3, 2007
James Brausch wrote an thought provoking post about Joint Ventures recently.
In his post, he says, “I don’t do “joint ventures” anymore.” He does recommend products that he believes in, but he doesn’t consider them the normal joint ventures that most people talk about.
His post really got me thinking. So I recommend you reading all of it. James noticed I recommended his multivariate testing solution Muvar in my print newsletter last month. I didn’t have an affiliate link. I didn’t contact James to setup a joint venture. I had simply recommended the product because it is a good solution…and provides additional benefits not available in other products I’ve tested (many of which cost much more than his product).
The first rule for me is that whenever I recommend anything I must personally feel it’s the right thing to do. The first motive must be for my subscribers and customers…never for the potential money that can be earned from the recommendation. And that’s a rule I’d recommend to everyone.
Too many people recommend products based solely on how much they earn from their subscribers. Get on many of the big “internet marketing” lists and you’ll be burdened down by the constant promotional emails they send you for the next hot thing you must buy. Is it because the brand new product is so exciting you must have it? Nope. Is it because they personally use the new product? Unlikely. Is it because they honestly feel it’s the absolute best thing you could do for your business today? Not on your life. It’s because they’re getting a huge commission and they know the hype will cause the sales to come flooding in.
It makes me sick (and yes I unsubscribed from all those lists).
But does this mean I don’t do joint ventures?
No. I do joint venture regularly.
I create products through joint ventures. For example, my Next Generation Marketing Magic product was a joint venture between Sharon Odom Fling and I. I’ve also created products with Fred Gleeck, Frank Garon, and others.
Recently I started offering “The Virtually Foolproof Method of Choosing Slam Dunk Markets!” where I put together the recording with a coaching client who has been in my program for over 15 months now. We taught exactly how he picks his markets (some of them are small niches and others are large general markets) and we even included a flowchart and step-by-step system to show how he does it.
We teach everything we promise in the course on how to choose your market for $7. There is also a backend offer from my coaching client where he offers his course, and I get 50% of the money on that. It’s not a required purchase by any means, but it is something I can whole heartily stand behind and recommend. I’ve had the course in my possession since BEFORE he even offered it to the public since I’m his coach. I’ve been through almost every element of it and have picked up a lot of information I now use myself. So I know both the “The Virtually Foolproof Method of Choosing Slam Dunk Markets!” and the backend course are worth way more than what they cost.
I also use joint ventures to promote my own products regularly…
For example, a business owner contacted me last week about promoting one of my courses to his list. Did I say No? Not by any means. I even took one of my emails and modified it slightly to be specific to his list. He sent it out and from early results it’s going to easily be worth $3,000+ to each of us. They were someone who is on this blog list, but other than that, I had no additional relationship with.
And this happens to me all the time.
There have been times I’ve went out for joint venture partners, and several of my courses even show the exact emails I’ve used for this. It worked. I found joint venture partners to promote my products, and been well rewarded for the deal.
But most often, I don’t look for “joint ventures” anymore. I look for other marketers in my fields that I can develop relationships with. If they produce good products, I buy from them. For example, did I have Muvar in my possession because James sent me a copy to try out? Nope. I bought it during one of his specials. I recently bought Pat Doyle’s Blog Traffic Jump Start for the same reason…it’s a good product and she runs a great blog.
It’s interesting. In blogging you get to know people. I’ve gotten to know James Brausch to a level, even though we’ve never spoken or even exchanged a single email. I’ve never spoken to Fred Black and Ryan Healy although we have exchanged emails before. Yet, I feel like they’re friends.
Anyone who read my October issue of my print newsletter knows I gave 7 ways to contact and build strong relationships with the “big players” in your market without doing that “joint venture” email.
Here’s a hint. Sure, I can provide you with an email that has worked very well at generating joint ventures, but I want more than that one-time income from a JV. I want long-term profits from building relationships with people I trust.
I don’t know how many times I’ve been asked by coaching clients for a “contract” they can use in doing a joint venture. I don’t have one! I’ve signed simple agreements at times with companies that I will give them a specific portion of the profits from the sales, but I don’t deal in contracts. If I don’t know you well enough that your word isn’t good enough for me, a contract isn’t going to protect me. Going to court for a joint venture is more hassle than it would ever be worth to me!
Choose your partners wisely…people you trust…and people who have the same attitude about providing value to your customers that you do.
I have never been ripped off in a joint venture that I know of. I say “never that I know of” because there may have been poor tracking implemented at some point and a few sales might have been missed, but not once have I ever walked away with a bad attitude toward my partner in the deal.
So I guess my experience is quite a bit different than James’ in that regard as he says, “I sought out the big names in the field and offered joint venture deals they couldn’t refuse. I did several joint ventures before I learned my lesson. One of those joint venture “partners” still owes me several hundred thousand dollars.”
I don’t know if the difference in our experiences is because of how we choose our partners or what? There have been a lot of people who have asked me for joint ventures in many different ways that I flatout refused because I didn’t trust them or know them well enough. I also avoided any joint venture where they tried to “guilt” you into promoting their product because they had promoted yours at some time. I don’t care what my relationship is with you. If I can’t honestly recommend it, I won’t recommend it…no matter what you may think about it.
Let me give you another term for a joint venture…an affiliate program. It’s one form of a joint venture. I would never tell you not to promote an affiliate program, but I’ll also tell you never to promote it just for the money.
If you wouldn’t honestly recommend the product to a friend, even if there was NO commission whatsoever, what in the world are you doing promoting it?
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4 Responses to “Joint Ventures or Maybe Not”
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Terry, thanks for the mention! I’m glad you liked my product and enjoy my blog. Yours is one of the few blogs I always read, no matter what.
I agree 100% with what you are saying about not promoting stuff that you don’t believe in. I believe in purchasing a product that I plan on recommending, and then I only recommend it if I feel that it is a good product.
Terry,
After reading this, I too had a strong reaction. I have gone on record, declaring publicly, that despite what the “other” affiliates do, I will never promote or recommend something I would not pay money for myself.
I think it is easy to get caught up in the “making money” aspect of our online life to the point that at times, it may cloud our judgment. May the Lord be gracious and point it out to me if I should ever stray towards that border.
[...] http://www.terrydean.org/joint-ventures-or-maybe-not/ [...]
Terry,
I really appreciate the article, and you have been a hero of mine for a long time. And up until now, I have really followed James, as well.
Here is a point where we drastically disagree, I think it is very poor test for anyone that has made money using joint ventures suddenly sound off on them being so awful. I also believe that they do their readers a disservice by closing their mind into one of the best ways of expanding your business.
A person doesn’t have to take my word for it, just follow Jay Abraham, or look to large companies like McDonald’s or Wal-Mart.
I do agree whole heartedly that a person should never recommend something that don’t believe in, and would not pay for themselves.
But, once you are an expert you don’t have time to buy and examine every new product on the market do you?
The only way a lot of really great products have gotten exposure, and little known new entrepreneurs have gotten started are through this joint ventures.
I should probably be writing all of this on James’s Blog. But, Terry keep up the great work.