Now it’s finally time for me to explain how you actually go about finding joint venture deals and how you make the contacts. In other words, how you make this thing fly!
Again, let’s make it simple. There’s really nothing complicated about this. Just follow along.
I’ll assume that you don’t have your own product, so you would start out by searching the Internet, either for what I call a…
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- Home Run, or
- Grand Slam
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These are not official titles for joint ventures. I just came up with these names because I think they make sense and are easy to remember. Plus we all love baseball, don’t we?
Let me explain.
There are basically two different ways for you to do joint ventures.
The Home Run
This can be explained as:
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- A joint venture between a Web site with a great product (the Supplier) and one or more introducing Web sites (the Endorsers)
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You simply locate a great product, probably on a low traffic site and then other Web sites with heavier traffic will introduce or endorse this product to their customers. In other words, you’ve made a “complete circuit of the baseball diamond” and scored a Home Run by finding a product and getting the OK from the Supplier to have this product Endorsed by other Web sites.
The Grand Slam
This is simply:
- A joint venture between two Web sites with non-competing products (they are both a Supplier and an Endorser)
You match-up two Web sites with non-competing products and have them mail their own customers each other’s offer.
In other words you’ve “hit a Grand Slam by batting in the three runners” (the Supplier, the Endorser and Yourself).
Home Run Or Grand Slam?
Your first joint venture could either be a Home Run or a Grand Slam. I’m not saying that one is better or easier than the other. Just get things going and see where it leads you.
You never know, you might hit a Grand Slam on your first try with two Web sites that have customers in the tens of thousands.
In this and the following section, I’ll get into the Home Run and in Section 8 I’ll explain the Gland Slam.
Below, you can actually see screen-captures of all the Web pages and search results. I’ve done this so you can actually follow along and view the Web pages as you read the step-by-step instructions.
The example Web site is actually a real site, so please don’t contact this particular site with questions or with any joint venture propositions.
I decided to use real information, because it’s important that you get a good grasp on this. Like they say, “a picture is worth a thousand words.”
Onward.
Let’s assume that you’re interested in sports, and in particular golf.
Now, one of the first things you would do is to fire up your Copernic browser and start searching for golf sites on the Internet.
As I mentioned in the section about tools, you could use Copernic, Web Ferret or any other search engine for this. But for our example, we’ll use Copernic.
You start by simply hitting “The Web” button under “Categories” to launch your search.
Then you can start your search by simply inputting “golf”, “golf equipment” or something similar in your search.
After a few seconds Copernic will have gone through a number of search engines and done the search for you and is now displaying the search results.
Now, Copernic will list a number of Web pages that all belong to the same Web site. So in order to eliminate a lot of duplicate look-ups, you would simply click on the “Address” field above the search results in the middle of the Copernic screen.
This will sort all the Web addresses in alphabetic order in alternately ascending or descending order as you click the “Address” field.
The next step would be to click the links in the results and start looking at the actual sites to see what they’re all about and what interests you or what pops out at you.
Now, for example, if you have looked at a Web site and then you see that the next couple of addresses in the search results also lead to that same Web site, you can simply skip them.
As you look at these various sites you should have Alexa running in order to see what kind of information Alexa is displaying about these sites.
Also, because Copernic will list a lot of results for you to investigate, you might not be able to finish looking at all these sites in one sitting. So as you finish one Web site, simply highlight that Web address in Copernic, and hit the “delete” button on your keyboard to delete that result. That way you don’t get lost as to which sites you have looked at and which ones you have not looked at.
Let’s further assume that after a few minutes of looking at these sites, you run across a Web site called Streamline Golf at www.streamlinegolf.com that makes custom made golf clubs and golf club components.
This site was originally started by David, a friend of mine in Renton, Washington, but has since been sold to someone in Asheboro, North Carolina.
After spending some time looking at this site you determine that this Web site has great potential for a joint venture. Your next step is to gather a few pieces of info about this site and to find the owner or the decision maker so you can contact him or her.
All you really need is…
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- The Domain Name of the site
- The Contact Name of the decision maker
- His or her E-mail Address
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You already have the domain name, which is “streamlinegolf.com”, but if you can’t find their email address on their site, you can go to a sites like Network Solutions at www.networksolutions.net or www.coolwhois.com or similar sites.
Network Solutions is the original site where domain names were first registered. However, since June 1999, Network Solutions is not the only registrar for domain names. There are now several others.
But since this was the original site, you’ll find most of the info you need here. This site compiles information about who registered a particular domain name. You’ll find information such as the e-mail address, the postal address, phone and fax number, as well as who is the administrative contact, the technical contact and the billing contact.
I should mention, that you are not to use this information for any purpose other than to find out who to contact. You have real reason and a serious business proposition for the Web site you are looking up. Never misuse this information for spamming or mass solicitations.
So now you would simply open a second browser window on you computer and go to www.networksolutions.net and click on the icon at the top right corner “WHOIS Lookup”
When the Whois screen comes up you simply type in the domain name of the site you want the info for in the “Search” box, (leave out the “www.”) which in this case you would input “streamlinegolf.com” – without quotation marks.
When you hit the “Search” button, up comes the info about streamlinegolf.com.
As you can see it give you a lot of information about this site, including when the record was created – meaning when the site was registered.
However, the only few things you’re interested in, is the Administrative Contact which is Ken Burnham and his E-mail Address which is golf@streamlinegolf.com.
I should mention that the e-mail address you’ll find here is sometimes not valid any longer. This was the e-mail address the person used when he or she registered the domain name and this might not be a valid e-mail address any longer. So if in doubt, use the e-mail address found on the actual Web site, normally found under “Contact Us” or at the bottom of the home page.
Also, if there are several different e-mail addresses on a site, try to figure out the one that goes to the decision maker. Remember, you don’t want to waste your time with someone who’s not in control. You only want to contact the person who has…
The Authority To Make Decisions!
I should also mention, that sometimes Network Solutions will not display the domain info you’re after, but will instead refer you to another “Whois” server, such as Tucows “Open SRS” at www.opensrs.net .
This is just another domain registrar. In that case you simply go to www.opensrs.net and enter the domain name of the site you’re after in the “WHOIS” input field and you’ll get the info that way.
Now, you have all the contact info you need, so you simply input the Domain Name (streamlinegolf.com), First Name of the contact person (Ken) and E-mail Address (golf@streamlinegolf.com) into your database or spread sheet.
You need to put this info in some sort of spreadsheet or database so you can keep track of whom you have contacted and when you made the contact. You also need to know what the result was of you contact – do they want you to contact them again at a later date, do they want more info or whatever.
Also you need to check your data whenever you make contact with a new site so you don’t duplicate your efforts or send several e-mails to the same Web site again and again.
So what you have found so far is a potential Web site that you can do a joint venture with that sells custom made golf clubs and golf club components.
If you’ve installed Alexa, and it’s running on your Web browser, you’ll see that Alexa displays information about this site, such as “Related Links” and “Related Site Info”. Also Alexa gives this site a “Traffic Rank” of 461,082 (at this particular time).
So, based on the above, you can pretty much be sure that this is a site with low traffic, because the lower the number, the higher the traffic.
So because of this information, you assume this site and its product is most suitable for a Home Run – to endorse to other Web sites with heavier traffic.
You now have a potential site that you can joint venture with, so your next step is to contact the decision maker with an e-mail, something like the following:
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Subject: Ken, let’s work together
Dear Ken,
My name is (Your Name), and I’ve just browsed your Web site www.StreamlineGolf.com and I wanted to make contact with you.
(Now here is where you could simply say something nice about this Web site or comment about why you think his site would lend itself to a perfect joint venture)
Because of what I found on your site, I want to share an idea with you that I believe could be very profitable for you and me.
I feel that your product is a perfect non-competitive match to several Web sites than I have had contact with recently.
Also because there is no time or monetary investment needed on your part, you could do quite well.
I would like to discuss this in greater detail with you.
Please contact me at your earliest convenience, as I am sure you are going to be as excited as I am once you hear what I have in mind.
You can reach me by e-mail at:
YourName@YourE-mail.com or by phone at 425-555-6664.
If you happen to miss me, just leave a number where I can reach you and I’ll call you right back.
Kindly,
Your Name
P. S. As soon as I hear from you I will let you know all the details.
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Now, if you want to be a little more aggressive and especially if you don’t get any response from your initial contact, even after your follow-up and final e-mail, you might want to fax a similar letter as above to the business.
You can normally find the fax number on the Web site of the business or you’ll find it at Network Solutions.
Unfortunately business owners sometimes don’t take the time to fully read all their e-mail messages, so they might have missed your important e-mail or just deleted it by mistake.
So regardless, if you don’t get a reply from your initial e-mail, simply contact them again with another e-mail or fax, changing the message slightly – starting out with something like:
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Subject: Ken, just in case you didn’t get my message
Dear Ken,
I tried to contact you a few days ago after I browsed your Web site www.StreamlineGolf.com
However, if for some reason you didn’t receive my message, here’s why I was trying to make contact with you.
(Now here is where you could simply say something nice about this Web site or comment about why you think his site would lend itself to a perfect joint venture)
I’m looking to market a product in the golf industry and your product has caught my interest.
I have contact with a lot of Web sites with heavy traffic and I would like to introduce your product to them.
I feel that your product is a perfect noncompetitive match for these Web sites to recommend to their customers.
Again, I want to stress that there is no time or monetary investment needed on your part, so there is no financial risk to you.
You could also do quite well depending on how the product is accepted in the marketplace.
Please call me as soon as possible to get this going. You can reach me at 425-555-6664 or by e-mail me at YourName@YourE-mail.com
Kindly,
Your Name
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Also, remember that you are not contacting these business owners as a “salesman” who is trying to sell them something. But instead you’re contacting them to…
Do Them A Favor!
So, when you get an answer back either by e-mail or by phone and the person wants to know what this is all about, you simply tell them what you have in mind.
If you get a reply by e-mail, you can simply e-mail them back and follow up with a phone call in a few days. Simply send them an e-mail, something like the following:
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Subject: Ken, here is the information you requested
Hi Ken,
Thank you for your interest in my offer.
I’m looking to market a product in the golf industry and your product has caught my interest.
I have contact with a lot of Web sites with heavy traffic and I would like to introduce your product to them.
I feel that your product is a perfect noncompetitive match for these Web sites to recommend to their customers.
Again, I want to stress that there is no time or monetary investment needed on your part, so there is no financial risk to you.
You could also do quite well depending on how the product is accepted in the marketplace.
Please call me as soon as possible to get this going. You can reach me at 425-555-6664 or e-mail me at YourName@YourE-mail.com
Kindly,
Your Name
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When the business owner contacts you again, you just tell him what you have in mind as well as finding out about a few things such as:
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- How long has he had a Web site?
- How much traffic does he get?
- How many sales does he make from his site?
- What’s the markup on his product?
- How much of that profit on his product is he willing to give up, to be paid out as commissions, if you find him customers?
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Of course, realize that most of the commission has to go to the Endorsers, the Web sites doing the actual promoting and selling. Your slice of the profits will be smaller. How much smaller is negotiable between you and the Endorser and the Supplier.
The total commission payout depends on several things such as:
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- Is it a hard-goods product or a “paper and ink” product?
- Is this a one-time purchase product or is it a repeat purchase?
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If the product is of an information type “paper and ink” product, the profit margin should be fairly substantial so the Supplier should be able to pay out up to 50% of the sales price as a commission – with maybe 40% going to the Endorser and 10% to you.
Because of the excellent profit margin…
Information Products Are
One Of The Best Products To Joint Venture!
If the product is a non “paper and ink” product with a lower markup the Supplier might only be willing to pay out 30% – with maybe 25% going to the Endorser and only 5% to you.
If it is a repeat purchase product, such as vitamins, the markup could be small, but the Endorser as well as you will continue to receive commission on all future purchases for years – with maybe 15% going to the Endorser and 5% to you.
But don’t let the small percentages stop you from doing these deals. It’s better to get a few joint ventures going with a small percentage commission, than getting a high commission and no, or very few sales.
How To Finalize And Close The Deal
Next let’s talk about what to do when you and the Supplier have agreed to the terms, and it’s a go.
In order for you to get paid and for the Supplier to fulfill their obligation to you, you need an agreement to be signed between the two of you.
However, an agreement is not always necessary. Obviously you don’t need an agreement if you have your own product and are only looking for Endorsers, or if you personally know the Supplier and trust him or her.
But if you decide to use an agreement, use a simple agreement without all the legal talk. And definitely try to stay away from a “contract”. A contract is way too formal and contracts kills deals.
For your first joint venture use a simple agreement, something like the agreement below, that’s friendly, to-the-point and describes the issues that you’ve both agreed upon.
Most people and businesses are honest. I wouldn’t worry too much about being ripped off. You are trying to get that first joint venture deal, so do whatever is necessary, and please…
Don’t Make It Difficult
For Anybody To Do Business With You!
Here is a sample agreement for you to use and/or modify as you please.
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Agreement
This agreement made and entered into by and between:
Company:
Address:
Web Site:
E-mail:
hereinafter called the Supplier
AND:
Your Name:
Your Address:
E-mail:
hereinafter called the Associate
WITNESSETH
The Supplier hereby agrees that the Associate has the right to promote the Supplier’s product(s) solely for the purpose of generating sales either by
Associate’s Web site or by other Web sites that the Associate introduces the Supplier’s product(s) to, and for the Associate to receive commissions on such sales.
Commissions
Supplier agrees to pay a commission of (specify % or $) to Associate for any sale generated by Associate or if the sale is generated by other Web sites that the Associate has promoted the Supplier’s product to, those Web sites will get a commission of (specify % or $) and Associate will get a commission of (specify % or $).
Payment Of Commission
Commissions will be paid once a month, and no later than by the 5th day of the month for the preceding month.
Refunds, Cancellations, Adjustments, Etc.
If a promoted product was returned for any reason for a refund or money was reimbursed to the customer, Supplier has the right to deduct the appropriate commissions from the Associate’s next commission check. If there were no commissions earned for that time period, the Associate agrees to reimburse Supplier immediately for the commissions paid out to the Associate on the returned/refunded products or reimbursed money.
Installing Of Tracking Script
The Supplier agrees to install a tracking script on Supplier’s site in order to properly track sales.
Agreement Period
This agreement shall be in force for a period of (specify time) from this date and shall continue automatically at the end of that time unless canceled in writing, with a one (1) month’s notice, by either party.
If there is no business generated in any three (3) month period from this date, either party can cancel the agreement by notice in writing.
However, all business generated up to that time will continue to earn commissions indefinitely.
Governing Law
This agreement will be interpreted according to the laws of (specify state, province or country) and venue will be in (specify county or area), (specify state, province or country).
Signed: ________________________ Date: ______________
Supplier
Signed: ________________________ Date: ______________
Associate
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There you have it. You have found an excellent product on a great Web site and you have tied up the product with an agreement.
Your next step is to locate Web sites that have the traffic to endorse this product to their customers for a slice of the profits. That’s exactly what I’ll explain in the next section.
Can you feel the excitement building?
Let’s move on.