Joint Ventures . . . the Killer App to Get LOTS of Coaching Clients
Most coaches believe they are too small to participate in Joint Ventures. But your business size nor your list size has anything to do with it.
Discover how to grow your list and clients by 1,000sWhy Would a Potential JV Partner with a Really Big List Want to Work With ME?
Let’s stop and look at the concept.
Let’s say that you have an ebook you are selling for $29.95, round it to $30 for our discussion. For most ebooks, the only cost is the time you put into it. So, after that, you make essentially 100% of that $30.
Now let’s say that you are going to approach a potential joint venture partner and make him a deal. He can sell it on either his site, or one of his teleseminars for $20. In other words you are going to give him the bulk of your profit on that book.
But keep in mind that a really big JV partner might move a few hundred to a few thousand of those. Let’s say 1,000 for the sake of this discussion.
You might be selling what, 1 to 5, a month on your website for the full $30? So you make $150 at the most. But working with a JV Partner, he might move 1,000 or so, you pocket $10,000 and he pockets $20,000.
Hmmm. Do you see? If you provide real value to a JV partner, you don’t have to bring them a big list. That old WIIFM, What’s in it for me, does kick in here, $20,000 speaks loud.
The only thing you MUST do is make it very valuable to those buying your ebook (or whatever you are promoting through your JV partner), and it must be able to sell for the price you’ve set up. Then you simply make an offer to the JV partner that he can’t refuse.
Let’s Give the JV Partner Even More….Huh?? Are You Serious?
Now, let’s back off for just a minute to evaluate what you really wanted from that book anyway. Most books, if written for the right reason, were written not to make money up front with it’s sales, but to build your list, which brings even more sales. That was really what you wanted. The book was to bring you clients and more sales.
So, let’s look at the lifetime value of your customers. A $1,000 a month coaching job might be worth about $12,000 for a year of coaching. So let’s take another big step into that “never thought of that before” land. We are going to give ALL of the ebook sales to our JV partner. We are going to let him have $30, and we don’t get anything (at least we don’t get paid for it).
What usually happens with that WIIFM from your Joint Venture partner is that the bigger the WIIFM, the more effort they put in to promoting you. Sales usually go up quite considerably more. In that first example besides the 1,000 ebook sales, we did receive 1,000 more people joining or list. With the JV partner pushing us harder, and possibly even longer, this could reach 2,000 on our list.
Now, let’s say that if we get even 7%, guess what??? Holy smokes batman, that’s 140 people taking some form of next step into hiring us. Our first estimate of lifetime value of a customer of $12,000 was for full blown one-on-one coaching. but since we’ve added $99/month membership site, $295 training programs, plus the $1,000 a month coaching, my percentages say that about 100 join my membership program, 30 join the training program, and 2 want one on one coaching. That works out to be about $21,000 for that first month. And we’ll want to keep this up from month to month, right?
About $240,000 for the year. Plus accumulating about 1K to 2K more on our list monthly. That could make a really good year!
Who Do You Want to JV Partner With?
Well, obviously the ones with the biggest lists will be the best choice. But don’t always pass up some with smaller lists.
Let’s say that your target market is small businesses, what other companies also target that same market? Web developer, other marketing companies, accountants, printers, etc. Maybe they don’t have the super size lists. Maybe their list is about the size of yours currently. But if you partner with them, couldn’t you double the size of your list, increase the number of people you market to and double your sales.
That simple huh? Yep! That simple.
Besides list size, who are ideal JV Partners. Obviously someone who serves the same market that you do, and isn’t in direct competition with you. Sometimes that is clearly different areas of the same market, as I mentioned above for a small business target market, web developers, marketing companies, possibly even consultants. But it’s also possible to work with others who may seem to do exactly what you do. Such as other coaches or consultants but who have different strengths than you do. I could work with other business coaches and consultants who focus on finances, while I focus on marketing and internet marketing. We all bring something to the party and any of us can easily promote the other to our clients.
In any case, who to pick for JV partners? Start with some that are working your same market and who you don’t directly compete with. If they have a list that is even half of yours, they will contribute to some pretty big steps in growing your list and sales suddenly.
Start with smaller ones, get your feet wet, and jump into the bigger pool as soon as you can. You’ll see your list, and your sales leap by many times in a very short time.
Helping coach/consultants reach another $100K to $1M within months and to stop thinking small when attracting new clients
Author of the upcoming book “Secrets to $100K+ Coaching/Consulting Business: Get Clients Faster, Easier”