Simple Endorsed Joint Venture That Any Business Can Execute
September 22, 2008
At the end of this short document are the five steps you need to go down to start you on the road to joint venture success. You may be tempted to jump to the bottom of this post read the five steps but I would encourage you to understand what is happening at a slightly deeper level.
Imagine that you have a product to sell that retails at $97on how to stay increase your business profits and live the life of your dreams.
You contact your nearest list broker and buy or rent a list of 10,000 names. You then craft a sales letter that explains your product and why people should buy it from you. The letter is sent out to each person on your list/database.
Amazingly you find that your letter pulls in a 2% response, in other words 2% of the recipients decide to buy from you. Lets do our sums; two percent multiplied by 10,000 prospects equals 200 orders. This gives us 200 Orders which retail at $97 or a gross profit of $19,400
Do you think that a 2% response is a bit on the small side? This may seem a bit on the low side, but 2% isn’t really that bad, or is it? Think about this for a second, the people don’t know you, they know nothing about your business, they probably don’t know anything about your product.
In short, they are concerned with being ripped off - Is there a better way?
Sending out a cold mailing like this is not normally going to work very well because they don’t trust you. Here is a way to improve it.
Just supposing you found an owner of a similar list who often contacts his subscribers and has a good relationship wit them. Imagine what would happen if this person wrote a to his subscribers and mentioned how great your product is and what a great person you are.
Do you think the response rate would be higher?
There is every likelihood that this type of endorsed letter is going to get a far better response rate than a cold list. The reason is simply that these subscribers trust the person who is endorsing you so the trust is transferred to you.
If your Joint Venture endorsement has been properly thought through there is a very good chance that you will get wa more than a 2% response rate. If your conversion rate only increased from 2% to 6% (a three fold increase) just imagine what that could do to your bottom line. Think of your bottom line, even if it only increased from 2% to 6% that’s a 3 fold increase. So instead of $19,400 you are now getting 6% of 10,000, multiplied by $97, equals $58,200 gross profit.
If you are incredulous about the increase then please try it out yourself. Here is what you could do; Test 1000 names from your cold (list broker bought) list and then analyse the difference when a joint venture partner endorses you.
Step 1 - Identify what type pf customers you are targeting
Step 2 - Find a Joint Venture partner who already has a relationship with these types of customers.
Step 3 - Agree a % split of the profits
Step 4 - Do a small test endorsed mailing
Step 5 - Do a small test to a cold list (same No’s and customer profile)
Compare the two results. There is a very good chance that the joint venture endorsed mailing did far better and brought in more profit.
All you need to do is repeat and leverage the one with the best results and you will make more money in less time.
Have fun with your next joint venture