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|Nine Simple Joint Venture Examples|
Joint Venture Expert Robin J. Elliott defines a Joint Venture as "...a win /win collaboration between two or more people, sharing resources to solve common problems and achieve goals."
1. Get Paid for Referrals: Joint Venture "As You Go"
One simple way to implement Joint Venturing is to start setting them up "as you go." In his Blog post "Understanding the Concept of Joint Ventures," Robin J. Elliott suggests, "When you respond to a need and make a referral, which you do every day, simply monetize the transaction and build in residual income wherever possible."
A Common Question
A common question asked then is, "How do I get people to pay me who I've already been referring business for free?" Click here to check out Robin J. Elliott's solution to turn non-paying business referrals into reciprocating relationships in his video Blog.
Multiplying Your Income
Also, from his book How to Retire in One Year, Robin J. Elliott suggests that, "When you have multiple Joint Ventures in place, the one can "feed on" the other, thereby multiplying your income. For example, if someone is already buying from or dealing with one of your JV partners, you can easily invite them to participate in a second and third JV with another partner."
Some of My True Life Joint Venture ExamplesFor the last 22 years Robin J. Elliott has leveraged Joint Ventures in business to create multiple streams of passive income flowing to him from all parts of the world on an ongoing basis. He now teaches the creative business strategies he has used to succeed at the DollarMakers Bootcamps, so that anyone may quickly and easily take advantage of this method of wealth creation.
From his book How to Retire in One Year, Robin J. Elliott shares, “Here a few simple true life stories of successful Joint Ventures that I have personally been involved in, that will clarify examples of JVs and also answer questions you might have as to the application of these principles in the real world.”
2. Hairdressers - 4 Ways to Make Money with Joint Ventures
When I trained hairdressers to increase their profits using JVs, I guaranteed double profits in two months. I charged $1,000 per month and I had four clients after nine months. When I spoke at hairdressing event, the owner of the Redken product rights for South Africa approached me with a JV offer. He wanted to get his Redken hair products into more salons, and I wanted more clients. If I agreed to exclusively train Redken client salons, he would promote my services to his database through his sales team. I accepted.
Making Introductions to Make Money
I don't know of any other way I could have increased my business so dramatically with no cost, risk, or time. As a Joint Venture Broker, you could have introduced me to the man from Redken and earned 20% of everything I made, as well as an override on all Redken products sold.
Doubling the Salon's Profits
Now you are probably wondering how I doubled the salon's profits in two months. I also used Joint Ventures on their end. First of all, they had to follow my instructions and take action. Most people don't follow the recipe and don't take action, so they don't get results - instead, they get a job. Sad, but true. Here's how we did it.
JV to Get Seats Filled
First, I was working exclusively with high-end salons. We printed hundreds of high quality Gift Certificates, entitling the holder to a free cut and blow wave.
Building a (Profitable) Back End with JVs
Next, we set up at least fifteen Joint Venture Partners who all supplied us with excellent value Gift Certificates and paid us generous commissions on resulting business.
3. Canteen - Leverage Someone Else's Unused Resource for FreeMy Dad and I heard about a savings and loan company (building society) that didn't have a canteen. Huge building, lots of hungry employees, no canteen. The company wanted to keep their staff in the building to save time, so they gave us the rights / permission to set up and run a canteen on their premises. No charge, no rent, captive audience. All I did was ask...
This is the only time I did business with my Dad, and it was great fun. We got a fridge from Coca Cola, hired a worker, bought inventory, got a cart to move food around in the building to sell even more, and started to cash flow from day one. Our outlay was minimal and we made money.
Here's the real money: As soon as the canteen was running at a good profit and our systems were in place, we advertised and sold the rights and the business for six thousand bucks to a policeman!
Easy, really. Anyone could have done that. Find a need and fill it. ASK. Help people to get what they want. Be proactive, professional, honest, and industrious. And make money.
Business Opportunities -Increase Employee Commitment AND Get Paid at the Same TimeRika and I had eighteen commission-only sales reps in our Success Motivation International distributorship because we paid 50% commission, as opposed to other distributors who had three salespeople and paid them 20%. Do the math. You pay peanuts, you get monkeys, with apologies to primates everywhere. Anyway, you get a certain level of commitment from sales reps, but you get a lot more from an "ownership mentality".
One night Rika suggested we sell our own distributorships, so we sold fifteen of our sales reps each a $10,000 distributorship in three weeks = $150,000. Here's the thing - their commitment soared, so their sales soared, too. We all won.
Creating a business opportunity works I have done this many times in various industries, moving huge amounts of product by selling them in bulk to distributors, selling training, franchises, and other opportunities. It's easy for an entrepreneur to create a business opportunity. But as time went by and I realized what a small percentage of people actually succeed in their own conventional business, I stopped selling business opportunities. Instead, I show people how to make money with no cost or risk through JV's.
Real Life Examples of How People Doubled Their Business Profits Using These Joint Venture SystemsFrom his book How to Double Your Business Profits in 97 Days, Robin J. Elliott shares real life examples of how people doubled their business profits using these Joint Venture systems Mr. Elliott teaches at the DollarMakers Bootcamps. "To protect the identity of these clients, I have used obscure references and made slight alterations, but these true examples demonstrate the efficacy of the systems."
4.Auto Lube and Tire BusinessOur client needed to differentiate himself from a lot of competition.
Win by Giving Stuff AwayInstead of offering usual 10% discount, we created a huge, roadside sign offering a "Free Gift with Every Purchase" and gave customers a choice between three free gifts valued at 10% of the purchase price. Since 10% of the purchase was the retail price of the prize, and we were paying the wholesale price, we saved 3% right there. Click here to read about more about how giving stuff away is great marketing. (http://jvblogger.com/2008/12/smart-marketing-win-by-giving-stuff-away/)
Adding MASSIVE Value through Your WebsiteWe then created a powerful website for online reservations, a checklist that every customer worked through to uncover more needs that could be filled either at the shop or through one of the twelve JV partners we put in place, and established a daily "Lucky Draw" with sponsored prizes (no cost to us) that would be drawn randomly each day for people who were in the shop at the time.
Differentiate Yourself Enough and Get Free PressThis gave us press coverage, which led to more sales.
...Did I Mention People Like Free StuffWe also provided a Gift Certificate to everyone who spent over $300, at no cost to us, and sent flowers to the wives (most customers were men) of men who spent over $1,000 - this was advertised in-house to all customers.
Create Sponsored Events (and More) to Build Customer RelationsWe created a Friday BBQ for all customers to attend - no hard liquor, only sodas -and all the food was sponsored by our vendors and local businesses, who liked the idea of piggybacking on our growth. None of the competition even thought of this.
We created a Student Discount Card (paid for by sponsors advertising on the backs of the cards) which we distributed through the Student Body of a local college, and this built the business and the database significantly.
We also started Business Networking Meetings for local businesses - door prizes sponsored by local businesses - and sold Memberships. This was held at a local hotel and gave us huge access and credibility.
Increase Their Stay and Sell MoreWe started provided free coffee in ceramic mugs, which kept customers in the store longer - none of the competition offered coffee. The longer people stayed in the store, the more they were inclined to buy, so we started carrying impulse buy merchandise, especially geared toward men. I learned this from a jewellery store in Bellingham, WA.
Get Free Advertising while Simultaneously Building RelationsWe created a "Customer of the Month" plaque - a randomly selected customer - and the plaque was hung in the office of the customer for a full month, then recycled to the next winner. So we were getting advertising in other peoples' offices - we soon made it "Customer of the Week"!
This business established itself as an Innovator - something was always happening there - and people started talking, word of mouth advertising grew, and it got so busy that we could focus on the back end and subcontracting, thereby exploding the profits.
5.Gift Basket BusinessThis client was only making a 50% profit on his gift baskets, so we added corporate gifts, gift certificates, and vouchers (no discounts or "Two for One" stuff - only genuine value, all categorized to suit the recipient) and dropped his costs, increasing his profit to 84%.
Mine Your Untapped Resources with a Resource AuditThen we did a Resource Audit to discover what other resources he had, and found that he had a large database of businesses that had bought from him, and also strong connections in Dubai.
Joint Venture with Your Partners as WellThe client differentiates himself from his competition by adding value through Joint Ventures via Gift Certificates to his Gift Baskets - he can now sell an $80 Gift Basket for the same price with $600 value and at a cost of 16%. All his JV partners have started using his Gift Basket service, as well.
Leveraging EquityHe leveraged equity and his lines of credit though my contact at 12%, and further increased his cash flow by $1,000 per month.
Boosting Profits with Trade and BarterThen he joined a Trade Company and they promoted his baskets on trade to their database. This pushed sales up fast and he used his Trade Dollars (total cost per T$ was only 28%) to buy services and products he was normally buying for cash, at a 72% discount, plus the Trade Dollar deal only applied to the first sale - after that, customers paid in regular dollars. Click here to read more about the real life powerhouse of barter and trade deals. (http://jvblogger.com/2008/10/real-life-powerhouse-barter-and-trade-deals/)
6.House Cleaning BusinessOne of our DollarMakers Club Members in the UK has a house cleaning business - over 200 high-end clients who spend good money. He keeps his customers on average for two years - good client retention, low attrition. How can he use Joint Ventures to double his profits in three months?
A Website Joint VentureWe added a solid website with links to numerous JV partners who all paid for links and also paid ongoing commissions for business they got, including home theatre services, landscaping, jewellery, financing, interior design, limo services, party and catering services, and a lot more.
Newsletter to Feed Joint Ventures and BusinessIn addition, we set up a monthly, printed newsletter with interesting articles, links to his Joint Ventures / JV partners, and a special offer to his clients: recommend one person who starts using the cleaning service and get one month free.
Building a Back End with Gift CertificatesThese JV Partners also provided high quality Gift Certificates that we distributed selectively via our new, monthly, hard copy newsletters and weekly e-zines - one per month.
Share the Love with Customers TooIn addition, we created a points system, which financially rewarded customers for length of patronage (the longer they used the service, the more value we created) and referred business.
Leverage Other People's DatabasesWe also Joint Ventured with several partners who had large lists of wealthy home owners, and they very selectively provided their lists with a Gift Certificate offering a free, limited house cleaning as a sample of the service the client provided. We naturally pay an ongoing commission on all new business resulting from these Joint Ventures.
Private Label Your Products And Make A FortuneWe also added a product line for house cleaning, branded with the client's logo, and we're in the process of licensing / franchising the operation. Click Here for a full article on Private Labelling. (http://jvblogger.com/2008/11/private-label-your-products-and-make-a-fortune/)
7.DentistThe client was based in British Columbia and wanted to enter the Washington State market, since Americans at that time saved up to 35% by using Canadian dentists and they could still deduct it from their insurance.
We found a Laser Eye surgery company in BC that had a large American list, and paid them $10,000 to mail our information and offer to their list in WA. Massive response.
Then the dentist approached a Seattle radio talk-show host, did his teeth for free, and had him sing their praises on his radio show at no charge for months!
8.RestaurantWe started the client off with a powerful training program to teach their employees how to deliver excellent service, particularly focusing on what happened at the END of the meal, including added value like walking guests to their cars with an umbrella in the rain, opening car doors, etc.
High End Gift CertificatesWe secured Gift Certificates from ten high profit margin local merchants (each commission to us would be no less than $100 net profit) to distribute at each table (every woman at every table would receive a Gift Certificate - perhaps a test drive of a luxury car or paintball for men) at every meal.
Have Extra Space? Sell Advertising.We arranged with a freelance salesman who sells advertising to sell advertising in the backs of all our menus and on signage in the washrooms (bathrooms / toilets.) Menus also have an advert in them to sell menu advertising!
Offering a Discount and Still Making MoneyWe set up a program to selectively and actively contact ten groups per week to offer them the opportunity to try out our services at an initial, one-time 15% discount, including Rotary Clubs, Singles Clubs, Dance Groups, etc. Naturally, this is an ideal opportunity to distribute Gift Certificates and sell menu advertising. With a food cost percentage of 32%, we still make a tidy profit after the 15% discount.
A Worthwhile WebsiteWe created a solid website with links to our JV partners, as with the cleaning company, and built a strong database (every guest is offered an incentive to opt in to our database at the time they are in the restaurant) which maintains regular contact via hard copy and e-newsletters, each edition highlighting one of our customer's businesses (our point system rewards regular visits to the restaurant).
Setting Up Programs that PayWe also created a Membership program, with discounts to offset the cost of Membership, build cashflow, and incentivise frequent visits and recommendations to the restaurant. And we pay commissions for referrals to Christmas parties and other group referrals. Customers can order special Gift Certificates with a 15% discount, which they can selectively give to their friends. These certificates are customized with their own name: "With the Compliments of Henry Bumsworth", so it looks as if the customer paid for the Gift Certificate.
Give Employees a Vested InterestAll the servers are on commission and tips only, and they benefit from the restaurant's success - graphs are posted DAILY so everyone knows how well we do and how they personally and directly benefit.
9.Realtor (Real Estate Agent)We had this client create a Directory that had 32 advertisers in it who were also JV partners, which meant they paid for the advertising but also paid him commissions on resulting business. He made money on the Directory printing, made money selling the directory to other realtors, and made money on the back end off all the commissions generated. He incorporated Gift Certificates and samples from local businesses, too.
People buying houses need numerous additional contacts and services, and businesses providing flooring, painting, renovations, windows, interior design, furniture, television, CCTV, patio furniture, lighting, plumbing, electrical services, and many other services were carefully vetted before being brought on board to serve them. The realtor also built a large database, which he leveraged by offering them other JV partners' services, including mortgages, insurance, and paving. His newsletters became popular because of all the "Freebies" they provided their grateful readers.
Joint Ventures know no bounds!Literally ANY business ANYWHERE in the world can be Joint Ventured in a multitude of ways to boost profits. The only limitations of this phenomenal business strategy are the creativity of the user (which is significantly improved by attending a Bootcamp), their ability to select good partners (which is greatly aided by joining the DollarMakers Club) and their willingness to take action.
See? Easy as one, two, three! The difference between successful Joint Venture Brokers and others is ACTION, PERSISTENCE, and CREATIVITY.