Steps
- Find another business owner who has a list of clients who are in your target market.
- Contact the list owner and ask him if he would like to review your product or service. After he tries it out, explain to him or her that you want them to recommend you to their client base. If they do so, you get a lot of business and you give your partner a percentage of your additional profits. 50% is the norm. Always remember that a percentage of something is a lot better than 100% of nothing.
Tips
- You also have the right to keep the contact information (e-mail, addresses, etc.) of your new clients. Now you have a mailing list too! It's a valuable asset. You can then endorse to them. Just be sure you have a good relationship with them before doing this.
- Find list owners who have huge lists. A list of 100,000 people is worth more than a smaller list (with all else being equal).
- Find list owners who have excellent relationships with their lists. The stronger the relationship, the stronger the endorsement. The stronger the endorsement, the more money you will make.
- Here is an example of the potential of JVs. If you were to get a hold of a customer list, and send an advertisement without an endorsement from the business owner they know and trust, the response rate may be around 1% to 3%. If you do get an endorsement, the response can increase to 10% - 33% and more. That is an increase of 1,100% to 3,300%!
- JVs are also low risk investments of time and capital, because you are paying on performance. If you make a sale, you give a percentage to your partner.
Warnings
- Before endorsing to your list, be 100% sure that the product or service is of very good quality, or it will hurt your reputation, and you may have a lot of refunds coming in.
- Never partner with people who have shady businesses.
- Never partner with people who give you a bad feeling when you are in contact with them.
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