First, let me give you my politically correct answer… the one you’ve no doubt heard me give if you’ve ever asked me to participate in a joint venture campaign.
Wait — just in case you’re not exactly sure what a “joint venture” campaign (actually, BETTER defined as “affiliate marketing) is — it’s essentially where biz owner 1 BORROWS biz owner 2’s list to sell a product or program.
Biz owner 2 sends out an email to their list, promoting (with total fervor and flair) whatever biz owner 1 hopes to sell you, and biz owner 2 –the owner of the list (the one you trusted with your email address) — gets a portion of the sale — if you buy.
This will explain why you’d get a form email from 3 different “gurus” promoting the same special deal…
So, back to my politically correct answer. It goes a little something like this: “I don’t do JVs. Right now, my list trusts me. And they know that when I recommend something it’s NOT because I’ve got some vested interest in them buying it… it’s because I BELIEVE in what I’m promoting. For me, this is working.”
And all of that is true. Every word of it. But there is more that I’ve always left VERY unspoken… until now. So, in the interest of total transparency, here goes:
1) I don’t like being “sold to” all of the time, and I assume you don’t either. So — frankly — if I’m going to hound you to death to buy something, I’d rather it be MY something. lol…
2) I believe this stuff really cheapens our relationship. For me, my “list” is not a list… I KNOW a lot of you, respect you, and really value our relationship, regardless of how “virtual.” I have zero interest in passing you around from marketer to marketer, so they can each try their best to get a piece of your wallet.
3) I’d be embarrassed to send you a series of emails — prewritten — SUPPOSEDLY from me… when I know the chances are HUGE that you’d be getting those same emails from some other coach you also listen to. (I don’t know… dressing up the SAME as everyone else is just not really my thing.)
Bottom line: I watch these joint ventures go down everyday. And the business woman in me wonders how much they’re REALLY making. Both the person selling (after giving away 40% – 60% to their JV partners) and the JV partner themselves. (Hey — businesses are about money… so it’s natural for me to at least wonder.) But in the end, passing YOU around to all of my marketing buddies to take a pass at you feels a little like offering you up as the fraternity house bimbo. Yuck.
Side Note: You have seen me promote some things that I DO very much believe in. www.dankennedy.com and www.stevechandler.com for example– I don’t get one red penny if you spent a million dollars with each of these businesses. I promote and recommend them because I know they can serve you – well… not because I get a kickback if you buy.
Michelle,
One of the things I LOVE most about you is how you role model a different way to success with honor and integrity. You stand out in how you think and I enjoy reading your blogs!
Thanks so much Denise! I am so glad you’re here reading them! Let me know if I’ll see you on June 11! (Btw, that pic of your dog — being CARRIED on Mother’s Day was too funny! I started carrying my Victorian Bulldog puppy.. and now I’m afraid he’s going to be a VERY HEAVY “lap dog”… lol…)
Why I DO joint ventures & Performance Based Partnerships…
First let me say Michelle that I respect your view point and that this isn’t an attack, just offering a different perspective.
I agree, you should always stick to what works for you and maintaining the relationship you have with your tribe is extremely important so anything that comes next is based on the premise that transformational value- add to our clients and customers is the priority and authentic transparency is the foundation.
To the points you raised….
A lot of “gurus” do seem to burn their lists by over-promoting products that are not their own and in those cases it does cheapen the relationship over time.
This doesn’t mean though that joint ventures aren’t effective, it just means that those individuals may not be as sensitive as they could be to the frequency of their promotions and how it may negatively impact both their community and themselves.
A really safe way to address this is to just ASK your community what would work for them, for example….
“Hey guys, you know I have your best interest at heart. I would never expose you to anything that wouldn’t benefit you immensely and add huge, transformational value to your lives and businesses. Given my sphere of influence I come across amazing people and products that I would love to share with you, but I don’t want to over do it. Would it be okay if I shared them with you every now and then? If so, what’s the sweet spot…once a month, quarter, year? And yes, sometimes I may get a commission and I’ll tell you if that’s the case, but his is OUR community so your input is invaluable. I’ll be sure to share your feedback with the others.”
I hear you you on the numbers as well. I wonder about the same things. Some people think you make a sale to get a customer, I think you get a customer to make a sale. The 40-60% given to an affiliate may be well worth it depending on the lifetime value of my clients/customers. In some cases businesses can afford to give away 100% of the first sale.
Here are my reasons why Joint Ventures & Performance Based Partnerships are still, in my opinion the most powerfully effective ways to add value and grow businesses fast.
1. You have the opportunity to add immense value to each others’ communities
2. You can set the criteria to insure alignment
3. There’s minimal up front risk & minimal financial outlay
4. You get instant reach & exposure to your ideal clients in addition to borrowed credibility
5. You can increase your range of offerings, thus your profits
Thanks for posting Michelle and keep em’ coming. This definitely sparked a dialogue and I hope you don’t mind me sharing.
Much continued success to you!