JV ? What, Who, Why…
Yesterday, I partnered up with 2 partners who will be able to take sales of my next Product AIS to a higher level. This is known in Internet marketing as a "Joint Venture" or "JV". Though I did not really need to partner up in order to make money, I decided that I would like to see how the "big boys" handle their marketing and sales.
Of course, this decision means that I will receive less per sale of each product (as I share the income with my partners), but should receive more income overall due to the far higher number of sales. In other words, my share of the cake will be larger, simply because the cake is larger!
I am pretty sure that most of the Internet marketing Professionals simply sell to their own mailing lists - these are people who have opted in (probably by previously buying products), so the chance of amking a sale is much higher to a pre-targetted mailing list than it is to sell to Joe Public.
It should be interesting to get an insight as to how a mass launch is done. If I can glean anything that's useful I will post back to let you know.
Comment by Will — May 23, 2006 @ 6:20 pm
Sounds like exciting stuff, Gary! Did you approach them or did they approach you?
Comment by dreamscape — May 24, 2006 @ 12:01 am
FYI, "Joint Venture" is not an Internet marketing term. It's an actual business term describing a certain kind of strategic alliance where 2 or more parties come together to form a new entity, sharing in revenues, expenses, equity, and control.
It is a great strategy for entering foreign or unfamiliar markets that companies have been using since before either of us were born
Off the top of my head the only current well known JV I can think of is the mobile phone maker Sony Ericsson, a venture between the media & electronics giant Sony and the telecom company Ericsson.
Comment by burt — May 24, 2006 @ 9:54 am
Yes, it should be quite illuminating. I basically had a product made, which I then advertised for sale on one of the private forums that I am on. I priced it quite high at $1000…
I also made a Camtasia Video of it in use, so that potential buyers could see the ease and simplicity of the product…
This led to a few members expressing an interest in the forum owners doing some kind of deal with me (thereby every forum member gets their hands on the product at a much lower price).
The Site Owner contacted me and we worked out a solution which should benefit all parties. As well as getting to see how the "big boys" do their marketing, I also got an extra sweetener (worth over $600 per annum to me).
At my $1000 price point, I did have 3 people ready to purchase. I would certainly hope to make more than $3k by entering into this agreement to JV. We'll have to see!
Well, even if none are sold, I have not lost out as I got my sweetener - but I am fairly sure that the product will sell well, particularly as the 2 partners are top sales-people who both have large mailing lists etc.
Well, it's out of my hands now. They are working on bringing the product to market (hopefully in the next few days). I am working on my next AIS!
Comment by Tom — May 24, 2006 @ 12:40 pm
Burt,
Congrats on your latest venture and good luck - with a price of $1000, you sound to be getting up the level of the "big" internet marketers!
Tom
Comment by Will — May 24, 2006 @ 3:52 pm
A bit like an IM version of Dragon's Den! Good luck with it, Gary, and keep us posted. Can you tell us anything about the product?
Comment by burt — May 24, 2006 @ 4:02 pm
Once they have the sales page up, I'll let you know the URL. I'll also show a way to get your hands on it cheaply, should anyone be interested
Comment by burt — May 24, 2006 @ 11:18 pm
OK, I've just seen the sales post that they've come up with. It's one of those extra long ones that nobody likes, but really makes you want to purchase the product…
Comment by burt — May 24, 2006 @ 11:25 pm
Here's the 411…
The product is a "site building tool" which creates non-scraped, White Hat, article based websites in minutes.
The only way (at this moment) to get your hands on the tool is to join Keyword Avalanche (cost $57 per month), then purchase the tool for an extra $57. So you need to lay out $114 in total. Once you've joined KWA, you'll find the sales post in the Forum.
You'll recall I mentioned I had 3 people ready to buy at the $1000 price-point, you can see just how good the low price is for KWA members.
You even get to hear my voice on a Camtasia Video
Comment by burt — May 25, 2006 @ 9:54 am
I don't know the number of sales of the tool right now, but judging by the posts on the forum it shold have sold a few.
We'll see, hopefully I'll have some good news to report when I get my check on the 1st of the month