06.24.07
How to Set Up a Successful Joint Venture
Be careful when setting up any reciprocal Joint Venture. Here are a few pointers / red flags that can save you time, money, and frustration:
- MOTIVES: When setting up a Joint Venture, be aware of the motives of your prospective JV partner. Many times, they will tell you anything you want to hear to get into your database, so avoid sending your people to their websites where they automatically opt in to their database. Set it up so that there are checks and balances – I have made the mistake of trusting the wrong people once too often. Now, before I cross promote, I want evidence that you are indeed reciprocating before I sell your products and services to my database. You can “salt” their database – opt in with a false name so you can see if they actually promote you and send out those e-mails. Many times, they have no intention of reciprocating.
- RULE CHANGING: Watch out! When they start changing the rules and moving the goalposts, or “Re-negotiating”, you know you’ve found a dud, not a stud. If you suddenly become too successful in their MLM downline, for example, and they renege on their promises, you have a loser by the tail. Replace them fast. Get the rules in writing at the beginning in a simple Memorandum of Understanding.
- LACK OF COMMUNICATION: If they are eager to communicate with you at the beginning and then they become “busy” or unavailable, you know they’re hiding and trying to back out of their commitment. Everyone is busy – that is never an excuse.
- WEAK REPORTING: You should receive a full Report / Statement at the end of each month, with a check attached. If you have to beg for details, it’s because they’re not tracking or don’t intend paying.
- Finally, THE COMPANY THEY KEEP: If you see that they are linked up with scoundrels and weasels, you know that birds of the feather flock eagerly together. DO judge them by the company they keep.
The great thing about a carefully arranged JV is that it takes little time and no money to set up, and you should not incur any risk. If you see any of the above Red Flags, walk away, terminate, cut bait, and move on. You’ve lost nothing and you have learned something. There are millions of JV’s to be had out there- no shortage – don’t be attached to any one JV.
Be particularly careful of the Big Ego. Usually, a big database makes people feel they‘re important, and you should be careful around those types. They think they’re untouchable, but they’re not. Do seek Centers of Influence, but find people who are humble, real, professional, and caring.
Do your due diligence, plan carefully, bearing the above in mind, and take your time. When people rush or pressure you, they’re either hiding something or they are desperate for money – either way, it’s another Red Flag. Look for patterns and remain objective – treat your JV’s like a Monopoly Game or a Cash Flow Game – don’t take it personally. By having multiple JV’s running at the same time, you can cross sell and cross promote the good ones. Take advice from your team members, mastermind group (if you have to pay to join it, by the way, it’s not a mastermind group) and fellow JV Forum Members.
Finally, as a DollarMakers Joint Venture Forum Member, I encourage you to ONLY JV with other Members. I do. I will not even consider doing a JV with a non-Member.
Robin J. Elliott www.DollarMakers.com
