How To Successfully Do A Joint Venture Proposal

Joint venture is one of the ways of giving your business leverage and reach out to a greater number of people instead of trying to go it all alone. It is a method you apply in order to get more hands to help you reach the population, class or race you would otherwise not be able to reach naturally.

It is imply a way of applying another person’s strength to the weak areas of your business and make it stronger. For example, you are a website developer who can design and develop new sites for your clients and make money from there. You may find out that there is much money in hosting websites. To gain your clients and render more services to them and also earn more money, you can do a joint venture with a hosting company and as soon as you finish developing the site, you also offer them cheap hosting. By so doing, you get regular residual income from them instead of just developing the sites and thereafter they go to a hosting company. You and the hosting company can be referring clients to each other and then earn higher.

You may also be an internet marketer with a very small mailing list. You can do a joint venture with someone who has a larger list but may not have a product to sell to his list in the immediate future. You simply offer to share whatever proceeds that would come from selling to his list on a ratio of 40:60; 30:70; 50:50, etc. In that case, you make more profit by getting more customers from his list while he also makes profits by offering your own products to his customers.

However, getting someone to do a joint venture with is always not as easy. Those who have the list don’t easily want to give anybody access to their own customers and the big guys don’t want to accept you especially when you are just coming up. This could really be a challenge to you.

How do You write a joint venture proposal?

When writing for a joint venture, there are things to be carefully followed in order to make the road smoother for you to navigate.

1. Have a good subject line: Your subject line should be attractive enough to make the person tempted to open and read your mail.  Avoid all kinds of preambles that could make your letter to be dumped into their thrash by the reader or by gmail. Simply use headlines like “Joint venture proposal”, “Can we do a joint venture?” etc. Introduce yourself so he is sure you are human.
2. Show your records: To impress your intended partner, you need proofs that you are what you say about yourself. Provide proofs of the achievements you have had in the past. If possible include testimonials in your proposal letter so as to convince him of your success records.
3. The gains in it: Let him know what he stands to benefit if he joint ventures with you. Nobody is willing to listen to you except he is sure there is something he stands to benefit from such a deal. The sharing formula for the profits should be stated clearly without any ambiguity. If the ratio is going to be 50:50; 60:40; 70:30, etc, it must be well stated and let the other person decide whether or not to accept the proposal. The essence of including the sharing formula is to take away any fears your intended partner might have. It should be attractive enough as to make him willing to accept it.

Having stated the aforementioned, there are other things you need to add to your write up before summarizing:

§  Contact address: There must be a way of reaching you. So your email, phone number and possibly your office address should be included to also make it possible to reach you and for your intended partner to be able to carry out some check on you. Including addresses is a way of letting him know you are not a ghost and that your business is real. Make sure not to use general email address; rather you should use a personalized email.

§  Website: Your partner would be interested to know about your website. He would love to visit it in order to be sure your site actually exists. He may like to do a whois check, PR, traffic, and other checks on your site.

§  Tracking: Be sure to let him know how you intend to track his sales so he would get 100% of his due commissions. Your partner must be reassured that he would receive due commission for every sale referred through him.

§  Payment method: Some people live in countries where it is difficult to access online payment processors. You must let your partner know what method you intend to use to pay him –Paypal, Payza, Liberty Reserve, Bank wire, Okpay, etc. Or simply ask him to tell you what he thinks would be the best for him.

When your joint venture proposal is well written and properly arranged, the possibility of getting your intended partner’s attention and interest is quite high. You must avoid the temptation of having to lie or include false testimonials because they would definitely ruin your chances should your partner detect them.

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