There is a tremendous opportunity in this economy…
On one side of the aisle, we have people and businesses sitting on assets, trying to figure out how to unlock the cash from those assets. On the other side, we have people and businesses who’ve spent time organizing and growing communities, lists and followings.
It used to be, when times were better and money was flush, both sides would do the work and spend a lot of time and money to create some or all of the what the other side had. The asset holders would advertise. And, the list holders would take their money and use it to keep building their lists. But, now money is tight.
Everyone wants the benefits of the old paradigm, but nobody wants to pony up…
The asset holders either don’t want to, or don’t have the money to pay the list/eyeball holders for access to their communities. So, they can’t sell as much stuff. And the list holders are making way less money selling access to their people. All of which creates…
The perfect opportunity for the rebirth of the promotional joint venture.
What if, instead of each side banging their respective heads against the wall, they both stepped up, shared in risk and worked together to unlock the money tied up in assets and lists and deliver it into the bank?
What if, instead of the asset-holders paying for access to the community gatekeeper’s people, they offered a share in the proceeds in exchange for exposure to the tribe?
Nobody spends money up front and everyone joins in the chance to make serious money on the back end. Seems like a win-win, as long as the asset is solid and it’s well matched to the needs and desires of the community.
Sounds cool, but…
What if you’re not the person with the asset or the list?
Is there some way you can still benefit from this approach? Absolutely. By being the person who finds each side, then bringing them together and taking a fee for doing so. And, just like the two sides, that fee will very likely be a smallish percentage of the total revenue from the joint-venture.
So, if you’ve got assets, rather than hoping and praying you’ll make it through the next year without spending money, reach out to your prospect gatekeepers (list-holders, media, organizers) and offer a piece of the action, instead of a fee up front. If you’re the gatekeeper, offer access in exchange for a nothing up front, but a potentially far bigger payout on the back end. And, if you just love and know a particular industry or space, work to bring together both sides, then share in a small piece of the transaction.
Is there risk in doing a promotional joint venture? Sure, there’s always risk in business. But, compare that to the risk of refusing to adapt to a new economic world order.
Beats the hell out of sitting on the sidelines and moaning about the economy, while watching your bank account dwindle, your warehouse too full and your pages too empty.
So, what do you think? Make sense?
Share your thoughts below…
[PS – A while back, I reviewed a really solid program that teaches how to structure these types of deals called “Partnering Profits.” You can read the review here]
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