Viking Joint Ventures
TheMarketingTeacher is pleased to offer items from Warlord Marketing. This particular resource is from the Viking Digital line and includes a quality eBook (pdf), a video version and an audio version. You and your students can learn in a variety of ways.
What are JVs?
Traditionally, JVs or Joint Venture Partners, simply referred to people who came together to cooperate and share in a business venture. Today, especially in the Internet Marketing (IM) world, it means something a little different. “JV” has become shorthand for “affiliate”, or someone who sends traffic to your offer and is paid a commission for each sale they make. Frankly, this has caused a little confusion because, even in IM, you can still have a JV partnership in the traditional sense. For example, if you have a video course and ebook you created, but no skills or means for getting it online, you could partner with someone who will do the web design and development and split profits 50/50. The fact that those two JV partners will usually start recruiting “affiliates” to drive traffic to their product while calling those affiliates “JVs” makes things even more confusing, especially when you consider that those two JV partners split profits AFTER payouts are first made to “their JVs” (affiliates). This happens all the time in IM and so it’s difficult to know what a person means when they say “would you like to be my JV?”. But today, for whatever reason, 9 times out of 10 a person simply means affiliate. Frankly, conflating the terms was a horrible mistake on the part of the IM community.
That said, since it has become the norm, in this guide, we’ll be using the term “JV” to refer to affiliates. Clear as mud? Good. Let’s move on…
Why JVs Are Better (Than Paid Ads)
There are plenty of ways to drive traffic today. But generally, when you need to drive large amounts of it for a product launch, you’ll be using paid methods. In many industries, the standard is, of course, paid advertising - usually pay-per-click or PPC. This is risky because you are paying out money for traffic without a guarantee that those clicks you paid for will convert to sales. So you’re risking loss and you have little or no control of what your ROI will be. For example, you might pay $200 for 200 clicks and only make $210 from the handful of sales you made. It’s great that you at least broke even, but you had no control over that outcome and in the next campaign you might make back less than you spent. You can still make this model work, obviously, but it requires a lot of testing, tweaking, adjusting, and a ton of “ad spend” just to get to the point where you’ve optimized and gained better control over your expected ROI.
Compare that to the JV/affiliate model. When you do a JV-driven product launch, you don’t have to worry about ad spend. You’re only paying for successful sales after they happen and you know in advance what amount you’re paying per sale. You also don’t have to spend any time or money testing and tweaking and targeting. You’re handing all that hard work over to JVs with their own lists and audiences that they already know well and know how to pitch and market to.
When you compare the two, clearly the JV/affiliate model holds an advantage, especially if you’re an independent entrepreneur and not a business with a huge advertising budget. Bottom line: if you want to launch a digital product, you need JVs sending traffic to your offer or you can kiss your dreams of having a big buyers list goodbye. The question is, how do you attract these JVs. It all starts with having an awesome JV recruiting page and that’s what we’ll cover next