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Joint Venture Marketing: Reducing the Costs of Your Advertising
A joint venture marketing partnership is an enterprise undertaken by two or more people or companies, who typically share the expense, and ideally the profits, created by their union. Joint venture marketing agreements do not create new business organizations or third party companies from their union - the idea is for two, or several parties to come together to share ideas, expertise, clients and contacts.
Advertising Joint Ventures
One of the most popular types of joint venture marketing partnerships involves a sharing of advertising space. This can take several forms:
- Trading space on your partners website for space on your site
- Pooling resources to purchase ad space
- Selling space on your website to your partners
Trading Ad Space
Forming a joint venture marketing relationship where the venture involves trading space for website advertising is fairly straightforward. If you have only one partner, you would swap an equal amount of space on your website for advertising for your partners company, and receive the same amount of advertising space on their website in return.
These types of partnerships are mutually beneficial to both parties and usually don’t require an upfront investment of capital. The same principle holds with more than two partners - each partner would be granted ad space on each of the respective websites of their joint venture marketing partners. This can be a highly beneficial arrangement at very little cost or risk - you could expand your advertising capabilities several times over and reach more people than you would independently. This is also a valuable resource because you will often be able to reach a niche of people that you would not be able to reach solely through your own website advertising.
Purchasing Joint Ad Space
Forming a joint venture marketing partnership where you pool financial resources to purchase advertising space is a valuable way to achieve the high-profile exposure of a paid ad, with a decreased expense. Advertising space, whether on a website or in print, is usually sold in increments of three or four spaces per page. This, of course, will depend on the publication - some will sell as little one sixth or one eights of a page, and you always have the option to purchase a full-page ad.
It is more cost-effective to pool resources with a joint venture partner to purchase ad space because it is cheaper to buy a larger chunk of advertising space, even if it will be used for different ads, than it would be to purchase each advertising spot separately.
Selling Website Space
Selling ad space on your own company’s website can be a profitable way to raise revenue for your company. If you have already made an agreement to trade ad space with a joint venture partner, but they would like additional space, you may charge them a fee.
Another option is always to sell space on your website in the open market to companies with whom you do not as of yet have a joint venture marketing partnership, and this can also increase your professional contact list and increase the potential for future joint venture marketing partnerships.
Christian Fea is CEO of Synertegic, Inc. A Joint Venture Marketing & Consulting firm empowering business owners to discover and implement Integration, Alliance, and Joint Venture marketing tactics to solve specific business challenges and increase profits. To read more articles related to Joint Venture Marketing, please go to his Joint Venture Blog Site. He can be reached at christian@synertegic.com
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