Success has less to do with what we can get ourselves to do and more with keeping ourselves from doing what we shouldn’tDarren Hardy
“If there is an audience willing to learn something for free, there will always be someone willing to pay for more. You only need 1% to become a millionaire and change the world at the same time.”Dan Henry
Get a FREE copy of my Marketing Strategies e-Book for ideas that you can implement immediately into your business! “More Leads – Joint Ventures” is one strategy outlined in the book, which I’ll share here as well.
Do you currently have any established joint venture partnerships?
JV’s involve two or more businesses who decide to form a partnership to share markets or endorse a specific product or service to their customer base… usually under a revenue share arrangement. The key to creating successful joint ventures is to find partners who service the exact same type of clients that need or want what you sell.
Let me give you an example and I’ll use one we’re both familiar with… a florist. One of the most financially lucrative product lines for a florist is providing flowers for weddings. The average floral bill for a wedding often exceeds $3,000. But what we discovered about florists is they fall into what we refer to as an “event chain.” An event chain simply refers to a series of businesses that customers purchase from in a specific sequence.
For example, a wedding will never take place until an engagement ring is purchased from a jeweler. So jewelers are at the forefront of every wedding chain. Once the young lady accepts that engagement ring, this event chain kicks into high gear. First, this young lady knows EXACTLY where she wants to get married, so number one on her agenda is to book the church, chapel or synagogue where she wants the ceremony held.
Second on her list is to line up her wedding planner. Weddings today are a really big deal, and often women like to use the services of a professional wedding planner. Next up, she wants to secure the venue for her reception.
She knows most venues book out months in advance, so locking in that venue is high on her priority list. After that comes the wedding dress, so she begins the search for the perfect dress at an affordable price.
Next is our florist. The bride-to-be will want to begin selecting her floral arrangements for both the wedding and the reception. Then after the florist comes the wedding cake… the printer for the invitations and thank you cards… and depending on the financial ability of the bride to be, she may also be interested in hiring a limo… a DJ for the reception… a travel planner for the honeymoon… the hotel… catering and so on.
This event chain is typical of this industry. And for the florist, it specifically identifies a multitude of potential and very lucrative JV partners. But here’s why this becomes so important.
Every business ABOVE the florist has the potential to ENDORSE and SEND prospects to the florist. Unfortunately, the florist has NO control over that flow of prospects. Every business above the florist controls the JV relationship, so it’s critical the florist create such a compelling offer and relationship with these businesses that they feel obligated to send prospects their way.
But here’s what’s even better. The florist controls the prospect flow to ALL the businesses BELOW them in the chain, and by establishing specific processes and procedures to make sure their customers use those businesses, the florist can negotiate compelling offers with those business owners as well. So consider these numbers.
Let’s say this florist cultivates a JV relationship with at least one of each business throughout this entire chain. Staying ultra-conservative with our estimates, would you agree this florist… since they have NO control over the flow of prospects from these businesses… is it likely they could obtain at least ONE referral each month from just one of the businesses above them?
OK, would you also agree conservatively that since the florist controls the flow of prospects to the businesses BELOW them… that they could easily send at least ONE referral to EACH one of them every month? Keep in mind these are VERY conservative estimates we’re using here.
Since the average floral bill for a wedding is $3,000… then just ONE referral per month from those businesses ABOVE the florist increases their annual revenue by $36,000. Now let’s consider the businesses BELOW the florist where the florist controls the referrals. Let’s start with the wedding cake maker.
The average sales price for a wedding cake is also $3,000, and the florist could easily negotiate a 10% referral fee. So, just a single referral per month produces an additional annual increase of $3,600 for the florist.
Now consider the printer. The average sales price for printing is $1,000, and the florist again could receive a 10% referral fee, so that single referral per month produces an additional annual increase of $1,200.
If we stop there, this florist has just increased their annual revenue by more than $40,000… and that’s using ridiculously conservative numbers. Imagine if you continued to add up the revenue produced by all the additional referral fees the florist would earn from all the other vendors in this chain.
This same process holds true for businesses that aren’t in a chain. But just like the florist, they simply identify partners who service the exact same type of clients that need or want what they sell. Now I realize this looks easy, but it’s not… and here’s why.
You not only have to properly identify who would make an excellent joint venture partner for your business… but you also must determine the order to approach each one… how to approach them… and when to approach them. It’s critical you do this properly or you wind up burning through all of your potential JV partners and come out with nothing in return.
Let me ask you a quick question. Just off the top of your head, how many potential JV partners would you estimate might be a fit for what you sell? Would you believe that I could identify more than a dozen for your profession? So conservatively, how many referrals would you estimate might be possible if a dozen other businesses were compelled to refer their customers to you for additional purchases?
Conservatively, let’s say you only get 3 referrals every month that buy from you. That’s less than one per week. How much additional revenue would that add monthly? Now multiply that by 12 to see your annual revenue increase.
One more thing before we move on. Remember earlier we discussed the critical importance of creating a highly compelling informational offer that would promise so much value to prospects that they would knock your door down to get it?
Suppose the florist offered this informational offer in their marketing, “5 Things Every Bride Should Know to Avoid Disaster on Their Wedding Day”. This offer would place TONS of prospects into their drip campaign and result in a tremendous increase in sales. Those new sales can then be referred to their new JV partners and they collect multiple referral fees every month.
This would absolutely dwarf the revenue we just uncovered for the florist in this example. What I find really exciting about JV’s is this is a strategy I help my clients implement immediately… and it begins generating instant cash flow for them right out of the gate.
In a recent case study I conducted, I found $75,000 in additional annual revenue just using the JV strategy.
And again, that’s revenue that business will generate year after year after year.
$75,000 in additional annual revenue increases the valuation of that business somewhere in the range of $225,000 – $300,000.
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As a business coach and marketing strategist, I work with small and medium size businesses that have little or no money to spend on markeitng. I show them how to generate all the leads they can possibly handle without spending any extra on marketing or advertising.
One of my focuses is to look at existing marketing and dramatically reduce your existing spend while significantly increasing your response rate. I aim for a 2-10X increase in response rate, but 50-100X is not out of the question.
If you’ll invest 45 minutes with me on a video call, I’ll show you how I can find at least $10,000 inside your existing marketing. I’ll show you how to get it and I’ll show you how to put it in your pocket.
I’ll do that in 45 minutes if you’ll give me the opportunity at the end of our conversation to disccuss what I could do for your business. (with zero pressure)
If you want to generate more revenue in your business click HERE now!
The thought, ‘I can’t’ is a lie. We use it to excuse ourselves from trying.Darren Hardy
“…the FASTEST way to getting back on my feet is to find the right customer who will advertise for me (through word-of-mouth referrals).Julie Stoian
“When you are at a panic point in life, who you surround yourself with MATTERS.”Stacy Martino
“…the false thinking that any amount of reading, watching videos, browsing social media, or going through courses will get me out of my situation… the ONLY way out is for me to take action like crazy!”Dana Derricks
In the talent hotbeds I visited, the chunking takes place in three dimensions. First, the participants look at the task as a whole – as one big chunk, the mega circuit. Second, they divide it into its smallest possible chunks. Third, they play with time, slowing the action down then speeding it up, to learn the inner architecture.
“There’s no higher-leverage skill a marketer can devote time to than that of storytelling.”– Stephen Larsen
Making a 22 hour drive from Southern Alberta to Arizona gives me plenty of time to think, and listen to audio books. Fortunately, this time I’m not alone on the trip so my wife has shared the driving, which gives me time to work and write.
While I was in Canada we were spending time with family and I had a chance to visit with a nephew who had asked me to suggest some good books for him to read. We were talking about the different books and he shared a few with me that he had enjoyed that I hadn’t read yet. One of them was Smarter Faster Better by Charles Duhigg. So this is one of the books I have been listening to on my trip home.
There are many intriguing thoughts and stories in this book, but something that really caught my attention was in his chapter on Innovation when he talked about Innovation Brokers or Idea Brokers. The reason this was so interesting to me is because I have been spending a lot of time recently preparing for an upcoming Mastermind Group, and the ideas he shared help to explain how and why a mastermind group works so well.
In his book, Duhigg refers to the work of Ronald Burt in a 2004 study he conducted. Burt conducted a study with a large number of managers in a company and found that ideas that were classified as creative came from people who were particularly talented at taking concepts from one division of the company and explaining them to employees in other departments. Burt explained that people connected across groups are more familiar with alternative ways of thinking and behaving. “This is not creativity born of genius, it’s creativity as an import, export business.”
As I listened to this and the rest of the book I decided to do a little more research on Burt’s ideas. On this topic, when people seek out insights from people in different fields, different organizations or of different mindsets, Burt refers to it as “brokerage.” He explains how this can lead to better ideas, improving processes and more. He says, “if you’re charged with innovation, you need to branch out and build brokerage.” “It’s essential. The new ideas we come up with come from the places where we vary. A person who only knows about the variations in what they do will get better at what they’re doing, but will always come to the same place.”
This is exactly where the power of a mastermind group comes from. I recently wrote a post High Performance Mastermind Group, and explained a challenge I had dealt with for some time which I had not found a solution to. But when I had an opportunity to sit with a group of entrepreneurs who were all in very different industries than me, we quickly found a solution to my problem as a group because the others in the group looked at my situation differently and had been through their own challenges in their industries.
Joining a mastermind group allows you to look at each other’s problems and challenges from different perspectives, industries and life experiences. But it also gives you an opportunity to discover things that are holding you back that you were not even aware of. It allows you to be more innovative in your business, your life and your thinking in general.
Join our Elite Performance Mastermind and prepare yourself to take your life and your business to the next level! You will be with an elite group of individuals, from different industries, backgrounds and different areas of the country that will be able to share their brilliance and knowledge with the group while you do the same for them. I’ll also be sharing some powerful tools you can use to give yourself the power to create the future you’ve been dreaming about.
If you don’t own or run your own business, don’t count yourself out. Whatever it is you do, you will do it better after joining this mastermind. You’ll think different. You’ll network. You’ll have the tools to be successful.
Be your best entrepreneur. Be the best manager. Be the best employee. Be the best YOU.
“I learned from Joe Polish that there’s no relationship between being good and getting paid, but there’s a huge relationship between being good at marketing and getting paid.”– Stephen Larsen