[tweetmeme]These days, everyone seems to be talking about Joint Venture Partnerships, yet there is little definition surrounding what joint ventures are and how you can make them work for you. Let’s shed a little light, shall we?
By traditional definition, a joint venture involves partnering to create a new entity and/or assets by combining equity and resources, then sharing in the revenues, expenses and assets of the partnership as agreed upon.
Today however, we’ve come to embrace a new definition, shaped by the rapid growth in solo-entrepreneurship and the evolution of online marketing. Everywhere you turn you’ll see entrepreneurs collaborating. The most common types of partnerships are Cross-Promotion Partnerships and Co-Creation Partnerships.
A Cross-Promotion Partnership is the simplest form of partnership and happens when two or more entrepreneurs partner for purposes of promoting their businesses, services, products, articles, events, etc. Typically short-term, cross-promotion partnerships do not require the combination of equity and/or resources, and they do not result in the creation of a new entity. Although generally simple arrangements, it is a good idea to make commitments in writing to be sure that all partners are engaging in a high-energy, high-integrity partnership. Cross-Promotion Partnerships are great for list-building, networking, establishing expert credibility, reaching new audiences and other non-revenue focused business building goals.
Co-Creation Partnerships are more traditional joint venture partnerships. This is when two or more people come together to create a new product, service, program, class, workshop, event, brand, etc. Co-Creation Partnerships are typically longer-term (6 months +), more complex, revenue-producing partnerships. It is essential that you draft and sign a mutually agreeable partnership agreement prior to investing time, resources or capital into a Co-Creation Partnership, so that all partners are aware of expected contributions and expected benefits. Since Co-Creation Partnerships usually result in the creation of a new entity, it is important to remember that you will need a comprehensive Partnership Plan, which includes a marketing strategy, as well as product development and delivery plans.
No matter which type of partnership you choose to explore, you can be certain that partnering is a great way to take your business to the next level. Always remember to think through your strategy, have a comprehensive plan and make sure you and your partner(s) are on the same page!
To learn more about integrating your online marketing and partnership strategies to spark exponential growth, visit http://jessicazsolutions.com . Or come to the next JV Coffeehouse ( http://jessicazsolutions.com/the-jv-coffeehouse ) where you can learn new partnership strategies, meet potential JV partners, and have your JV questions answered by an expert!
About the Author:
Jessica Zambarano helps entrepreneurs and small business owners integrate online marketing and partnership strategies to spark exponential growth. Her business, JessicaZ Solutions ( http://jessicazsolutions.com ), provides one-on-one strategic consulting, group cross-promotion opportunities and free resources for entrepreneurs and small business owners interested in building their business through the power of partnership. She enjoys facilitating connections between entrepreneurs, seeing them support each other as they build successful businesses.