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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 Similarity of Affiliate Programs
Venture (JV) is similar to Affiliate Programs. Still, the JV differs
from Affiliate Programs since the two people join in union to work in a
single business, utilizing each otherís resources to profit the
business. Affiliate programs require that you work outside of the
business to market the goods offered at the affiliate site.
Joint Venture relationships entail one party marketing a site ownerís product and/or service in exchange for half of the profit the company generates. For instance, take me for example. I am skilled in writing SEO/Keyword Density articles, which enhances the ranking of web sites. I would search for a marketer to join in JV union in the area that fits my expertise.
In this case, I can stretch beyond, since my talents will work in nearly any business. What I do is propose to exchange my marketing abilities to the JV partner, promoting his/her business and in exchange, the owner provides me half the profit the business generates.
On my part, I will generate traffic to the JV partnerís website by enhancing the sites ranking, by writing articles geared to focus on one topic. The articles will include keyword rich content, and will house links that sends the audience to the partnerís website. I could also use my SEO skills and provide one-way linking exchange to the partnerís site, thus increasing traffic.
Few people will include reciprocal links, which takes more time and will cost money is some instances. My advice is to stick with one-way link exchanges where you merely ask a webmaster to link to his/her site. If accepted the exchanger may add your link to his/her site.
I could also write newsletters that send the audience to the JV partnerís website for promotional purposes. As well, I could add and attract higher traffic returns by promoting the JV partners site through EZINES. Another good idea is placing reviews on various sites that offer relevant information to the site I am promoting.
The Partners Part
The JV partner will provide me information pertaining to his/her business. The JV partner will provide me insight links, connecting my resources to his/her resources, which are pulled together to form a working business unit. Once I begin the promotional campaign, the partner will provide me shares and statements of profits generated, i.e. if I do my part and make sells.
During the agreement phase, I will present an outline of a business plan and a list that houses details relevant to the business. The information in the body of the documents will show the JV partner my abilities, success, skills, talents, human relations (HR) strategies, business strategies, communication skills, etc.
I will also draw up an outline or plan that will leave room for exit and/or termination of the position, i.e. if the partner is not holding up to his/her part in the business relationship. If Iíve done my up most to promote the business and failure occurs ongoing, the escape plan will leave it open for me to remove self from the Joint Venture union.
The plan will also include disaster planning, which means I will devise a plan to recover from disaster promptly. Unlike Affiliate programs, the JV strategy pulls together resources in a different light.
For example, if you are skilled in restaurant work you will look for a partner marketing foods and items of restaurant nature. You will use your strategies, tools, resources, etc to generate revenue for the business. You might approach local restaurant owners asking if they demand the products you are marketing, otherwise you might promote 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 a JV union, take the steps to learn all you can to avoid failure. Read, write, review, and put the wheels in motion when considering a Joint Venture union in business.
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