One of the most effective marketing techniques is Joint Venture marketing, whereby you find a non-competing business whose customers are the same type of people as your customers. You get this business to promote you or mail their customers promoting your product or service and then split the profits with the host business. It takes many years and many thousands of $ to build a customer base so why not take advantage of someone else’s hard work?
And the beauty of it is that it’s a win-win for both of you! Jay Abraham, the famous and successful US marketer, has a sound piece of advice when it comes to setting up “host” relationships: “Be generous with the host company when setting up the deal. If you can’t get the host company to pay for the mailing, offer to pay for it yourself. Or offer them 60% instead of 50%. Or offer them 100% until they double their money, and a lower percentage thereafter. Offer them whatever it takes to get them to do the joint venture with you. What do you care how much they make, since you’re investing so little up front and have so much to gain yourself”?
Over the years when I’ve explained this truly effective technique to clients I get many blank looks as they think it’s all too hard, despite the examples I produce from real businesses showing that in fact it’s like everything in life, it just takes a little effort and imagination. Now imagine how thrilled I was to see this pavement sign outside a local shop which I immediately captured with my mobile ‘phone:
Isn’t that fabulous? So simple, so low-cost and so straightforward and yet so effective! It costs the shoe shop nothing, not one cent, so they’re happy little bunnies. And neither, of course, does it really cost the pedicurist anything either, just their time. But the return for the pedicurist, if she does a good job, is huge taking into account the lifetime value of a typical customer – even at $50 per visit, monthly for even three years is $1,800! What a local and very simple example to explain joint-venture marketing to clients.