These types of business to business collaborative opportunities can include:
- Co-hosting a live event
- Creating an on-line training program
- Co-authoring a book
- Co-leading a group coaching program
These types of JV partnerships can be incredibly wonderful on so many levels from helping you create massive lists, increasing your profits and dramatically improving the positive impact you have on the lives of others.
However, things can go really wrong when you don’t know exactly what to do in these type of situations!
I have seen many of my business colleagues experience a variety of outcomes that range from “absolute JV synergy” to the “It got really ugly fast!” type situations. As a speaking expert, I have coached many of my clients on what to do and not to do in these types of situations so they can avoid the common pitfalls that so many others end up dealing with.
To ensure that you make an educated decision when it comes to JV partnering with another business person and/or company, I wanted to share some super important things that you need to do before it’s too late.
# 1 – Before you ever say “Yes”…
Before you ever say “Yes” to a partnership, you want to make sure you talk about what you both need, desire and are willing to do. Make sure you are on the same page.
I have seen many co-hosted live events where one speaker ended up doing most of the work including filling the event seats. By the end of the event, that speaker felt like the other partner took advantage of them and didn’t do their part.
I don’t want this to happen to you so be crystal clear about EVERYTHING including:
- – Who is doing what technical things such as website design?
- – Who is responsible for what aspects of marketing?
- – How are you going to handle the financial aspects of creating and designing this program?
# 2 – Always do this!
Whether you are partnering with your best friend, beloved family member or a highly respected person in their industry, always get all the specific details in writing. Let me say that again “Get everything in writing!”
To avoid huge challenges in the future, always create a contract that you both discuss, agree upon and sign. I have seen way too many friendly JV relationships go south because one person believed one thing and the other person saw it a different way.
If you put it in writing, you can always refer back to the contract you both signed and maintain a healthy JV relationship.
# 3 – Don’t leave this to last minute
Maybe you decide to co-host a half day workshop with your JV partner. To make it extra lucrative you and your co-host are planning on making an “upsell training offer” during the event so that attendees have an opportunity to continue learning.
To avoid potential problems, you and your partner need to discuss your “Program Offers” immediately before you ever say “Yes!” to moving forward with your joint venture.
Decide in the beginning if you…
- Are you offering a higher level program led by you and you partner?
- Are you making individual offers to the participants?
- Is there any overlap in your program offers or are they distinctly unique?
- How will your relationship be impacted if one person outsells the other?
- Are you going to the split the sales income based on a specific percentage for each?
- How are you going to process the sales such as credit card, recurring payments and handle all aspects related to payment processing?
- How will you handle expenses like credit card fees?
- Do the program sales help to cover your overall JV expenses?
I know these questions got you thinking! Make sure you ask these types of questions. Just imagine what could potentially happen if this type of information isn’t clear prior to your JV partnership.
I found this great article by Valerie Orsoni-Vauthey called Joint Venturing 101. I thought you might want to read this too. You can check it out at: http://entrepreneurs.about.com/od/beyondstartup/a/jointventures.htm
Now that you know what common pitfalls to avoid when Joint Venturing, apply what you have learned and create happy and healthy JV partnerships 🙂 If you have any questions or comments make sure you post them below.
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