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venture (often abbreviated JV) is an entity formed between
two or more parties to undertake economic activity together. The parties
agree to create a new entity by both contributing equity, and they then
share in the revenues, expenses, and control of the enterprise. The
venture can be for one specific project only, or a continuing business
relationship such as the Sony Ericsson joint venture. This is in
contrast to a strategic alliance, which involves no equity stake
by the participants, and is a much less rigid arrangement.
Organizations can also form joint ventures, for example, a child welfare organization in the Midwest initiated a joint venture whose mission is to develop and service client tracking software for human service organizations. The five partners all sit on the joint venture corporation's board, and together have been able to provide the community with a much-needed resource.
The phrase generally refers to the purpose of the entity and not to a type of entity. Therefore, a joint venture may be a corporation, limited liability company, partnership or other legal structure, depending on a number of considerations such as tax and tort liability.
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JV and the Comparison of Link Programs
Venture (JV) is comparable to Affiliate Programs, or linking associates.
JV however, be at variance of Affiliate Programs, in view of the fact
that two people join Intellectual Property (IP), pulling resources
together in a solitary trade. The JV partners employ each otherís
assets to generate revenue to the corporation.
Affiliate programs differ, since you provide space on a website to promote a business and receive commissions, or tier income from the associates. You do not sign any agreements, other than a simple Terms & Condition.
Joint Venture alliances involve marketing, selling, producing, etc, i.e. one JV partner markets the other JV owners site and products in swap over for half of the companyís profit generated from the partners promotions. The partners sign a contract that is in great detail, and defines, verifies, and builds trust before the relationship begins.
The marketer might utilize his skills, which he/she will define in great lengths in the contract. The marketer, e.g. will build links, exchange links, write articles, build web pages that links to the partner, use Search Engine Optimizing strategies, write newsletters and create subscribers, as well as writing EZINES to promote the business. The marketer could write newsletters that send the spectators to the JV partnerís website for promotional purposes.
As well, the marketer could enhance and create a center of attention, bringing in higher volumes of traffic returns by promoting the JV partners site through EZINES. The marketer might place reviews on various sites that offer relevant information to the site in promotion.
I point this out, since the details and definition must be outlined thoroughly within the business plans, lists, and contracts signed by you and the JV partner.
The JV collaborator will make available information linking to the partners business. The JV partner will make available links, connecting our resources to his/her assets and Intellectual Property, which together we will pull our sources to form a working business relation. The partner will make available shares and statements of profits generated, i.e. if you do your part and produce sells through your promotional campaign.
At some stage in the agreement, you will make available a draft of a business plan and a list that encloses the details pertinent to the trade. The information in the body of the documents will show the JV collaborator your aptitudes, achievements, human relations (HR) strategies, corporation strategies, communication expertise, et cetera. You need to create a rough draft or plan that will leave room for exit and/or termination of the arrangement, i.e. if the partner is not holding up to his/her part in the business affiliation.
You will also need to include a plan for disaster, which comprises strategies to recover promptly when/if a disaster occurs. In contrast Affiliate programs, the JV line of attack pulls resources together, yet the partners head in the same direction often.
For instance, if you are skilled in marketing you will look for a partner marketing products you are familiar. You will employ your strategies, tools, resources, etc to create returns for the commerce. You might approach local business owners asking if they demand the products you are marketing, or else you may perhaps endorse the business by enlisting your own website.
You could also generate traffic by adding mini sites, websites, informational pages, and/or reporting pages. Any information should focus on the subject and never mislead or sway the audience in another direction.
If you are on the market for joining JV collaboration, take the steps to become skilled at JV to keep away from stoppage. Read, write, review, and put the wheels in motion while contemplating Joint Venture collaboration in business.
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