What Are Joint Ventures?

4:54 pm

When you decided to enter into online business, you may have thought that you were moving away from business-speak (what many would not-so-affectionately think of as “business mumbo jumbo”).

While you will be able to move away from a great deal of business-speak by entering the world of online business, there are still a few key terms you will need to make sure you understand.

One such term that you are likely to come across every so often in your online business pursuits is “joint venture.” A very basic definition of a joint venture is, that it is the cooperation of two or more businesses or individuals, in which each party shares profits, losses, and control in a single venture with the other. There are plenty of “real world” examples of successful (and long-standing) joint ventures, but when it comes to online business and online marketing, the specifics of what a joint venture entails are a bit different.

joint venture

Generally speaking, the alliance established by a joint venture is intended to be for a specific project (or for a set period of time).

And in online marketing, this “specific project” is often the pairing of one person or business that has a great product to sell and another person or business that has a great list of leads. By joining forces with one another, the two parties are able to take what they do best and align it with what someone else does best.

Another way in which the Internet enables joint ventures is by giving each party a ready platform (that is, their website, and the customers who regularly visit it!) from which they can promote the products of another company.

When two or more businesses enter into one such joint venture, they can cross-promote for one another – encouraging their own customers to check out the products and services of the business (or businesses) with whom they have entered this joint venture.

You Might Also Like