Simple Endorsed Joint Venture That Any Business Can Execute

Posted by writer on September 26th, 2008 at 06:04pm

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. Please don’t jump there right away because you don’t want to miss out on some of the nuances.

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.

You find that you convert 2% of people into buying your product using this letter and approach. 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? It is in fact pretty good as far as it goes but could it be a lot better? 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?

The chances are good that the letter endorsing you will achieve a much better conversion percentage than if you used 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 doubt these results then consider this. 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 who you are targeting (type of customers)
Step 2 – Find a Joint Venture partner who already has a relationship with these types of customers.
Step 3 – Negotiate a % split of 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.

Happy Joint Venturing

Tags: business profits, conversion rate, endorsed mailing, joint venture, response rate, ripped off

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