The Risks Of Joint Ventures

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The are some risks of joint ventures that you have to consider before you proceed with a joint venture opportunity. In this article I will share with you some of these risks of joint ventures and what it means to you as a marketer. Some of the risks that I will mention will seem like common sense, but for the most part these risks can affect you in one way or another. Here's one of the first risks of joint ventures.

1) Your reputation is on the line

Your reputation is on the line in a number of ways. For one, if the JV is not a success, more than likely your JV partner will not want to do business with you ever again. It's important that your JV is a success because word will spread in your niche that you're someone that people should not do business with.

Your product reputation is also on the line. Without a stellar product, you will get a lot of refunds. This is one of the risks of joint ventures that a lot of people overlook. It's one thing to get sales, but it's totally another thing to keep the sale. To keep the sale and avoid a refund, your product has to be worth its product price. With that being said, let's take a look at one of another risks of doing JV's.

2) Income potential can be limited

The amount of money that you make from the JV may not be enough to proceed with a second one. You have to plan for goals to have when doing your JV so that you and your partner can both know what to expect from the partnership. If you're currently selling a product at a low price point, then you can not expect to make a lot of money from the deal. That's just the nature of the beast. Let's take a look at one of another risks of joint ventures.

3) You have to give a considerable percentage

If you currently have an affiliate program that is paying 50% for each sale, then you may want to offer your joint venture partner 65% -75% of each sale. Your JV partner has an asset that you want a part of (their customer list), so you should pay them considerably for the asset.

One of the risks that you face with giving a large commission to your partner is that you may not earn enough money on the deal to make it worthwhile. Sure you have equity in the customer that you accepted, but as far as immediate income, it may be slim to none. You will have to weigh out the pros and cons of giving a large percentage to your JV partner. Let's take a look at the last risk of JV's.

4) You're responsible for tracking

If you do not have a good tracking software, then get one. It's utterly important to your joint venture marketing success. Luckily, there are programs out there that you can use to track your statistics automatically. Two good programs are ClickBank.com and Paydotcom.com.

Both of these sites give you tracking ability and the ability to see how well the partnership is doing. Both of these sites give you access to the stats that you need to be able to determine whether or not the partnership is profitable.

These are some of the risks of joint ventures. Be sure to weigh out these risks carefully before you start a JV in the future.

Good luck with your joint venture marketing efforts.

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Source by Adrian Hargray