The Art of Joint Ventures

If you've ever listened to any of Jay Abraham's material you could be forgiven for thinking you know all about Joint Ventures (JVs).  Either that or you're in that group of people that don't know anything about JVs.  Whichever group you are in learning more about 'The Art of Joint Ventures' could dramatically improve your earning ability.  Let's start by defining a JV, so we're sure to be talking about the same thing.

Wikipedia defines a JV as an agreement between two or more parties to undertake economic activity together by creating a new entity.  This definition usually only applies to large scale enterprise such as the Fuji Xerox joint venture and is distinct from a strategic alliance which does not involve ownership.  For the purposes of this discussion I will define three separate classes of JV.



JV Class # 1: A Strategic Alliance
A strategic alliance is an agreement for two parties to co-operate toward a common goal while remaining separate entities. 

JV Class #2: Host / Beneficiary Relationship
A host beneficiary relationship is the type of JV popularized by Jay Abraham and takes the form of a host entity allowing a beneficiary entity to market to it's customers or clients.  Again no equity is exchanged typically and profits are shared according to negotiation between the parties.

JV Class #3: Equity Joint Venture
A new entity is formed with share-holding by both the co-operating parties having an equity stake in the new entity.  Depending on what each party brings to the table the equity may be 50/50 or a larger stake and/or control of the new entity may pass to either party as negotiated.



For every type of JV it is very important to agree in advance the distribution of profit and the contributions each party will make and when.  Except for smaller joint ventures it is usually advisable to put this agreement in writing.

For larger JVs it can be necessary to have lawyers draft documents however in most cases this is unnecessary because of the cost of enforcing any agreement.  What is critical however is that each party is clear on it's obligations under the agreement and of the consequences should either party fail to perform them.  The art of putting together a JV deal then comes down to a mix of salesmanship and negotiation.

The first step for anyone want to JV with another is to think though the proposal fully from the perspective of the partner as well as your own.  The things you need to consider are the costs involved the potential profit as well as the risk to either party and how to minimize it.

Much of the art of creating JVs comes down to selecting the correct partner in much the same way as you would select a target market if you going to produce a new product. Once you've determined your ideal JV partner, you need to approach them in such a way that they are willing to give you the chance to present your ideas to them.

Getting an appointment comes down to utilizing the correct language to succinctly communicate the benefit that your proposal will offer and nothing more.  Never discuss the details of your JV over the phone.

Instead make an appointment where you can meet with them and show them a proper presentation.  If they ask you to disclose your proposal on the phone simply say you have to show them it, and that you'll only take a short amount of time and then leave it with them.

Don't ever try to pressure someone in to doing a JV.  If the other party is not sufficiently motivated to do the JV with you it may be that the timing is not right for them, or that you've not thought through your proposal enough, or that you're simply not communicating the value for them, or you're demanding to bigger slice of the pie.  No problem!  Just rework the proposal and keep trying.

The performance of a JV is another subject entirely and outside the scope of this article.  However I invite you to contact me, or to post comments here, with your experience.  I wish you the best of success for your JVs.

Bring back the retweet

What happened to my retweet?  I was just checking out a new person on Twitter and he had something good for retweeting, and what?  No retweet!  How could they do this...  I know it was a beta, and that it was just a trial, but it was so good how could they possibly go back to the old ways. 

I was forced to copy the post, click on the home button, type RT and @ then paste the tweet... OMG what a hassle.  How could this possibly happen.  Twitter, bring back the retweet button.

Get The Edge

Ivan Lendl was the world's number #1 ranked tennis player during the 1980s around the time of John McEnroe.  Was he the most talented individual of his day?  No, but it was his work ethic, his dedication and his routines and rituals that made all the difference.

He was renowned for his adherence to strict diet and exercise schedules precisely timed and thoroughly rehearsed in every facet.  His modern day equivalent is, of course, Tiger Woods whose similar dedication to the management of every aspect of his life has enabled him to become the highest paid sports star in the world today.

So what can the aspiring Internet Marketer or entrepreneur take from these stories?  I take this away from the story and add a further example from my own mind rather than the two above I have stolen from Jim Loehr & Tony Schwartz's 'The Power Of Full Engagement':  1. That Eminence occurs only as the congregation of extremes of talent, effort, and perseverance; 2. That because nature is inherently cyclical we need to manage times for rest, fun and pursuit of enjoyable activities as consciously as that of work to ensure that the downtime is also productive, albeit with a different outcome from work.

The example I will use to illustrate this point is that of Salvador Dali whose prints have graced the walls of many of my abodes and who was a stunning example of how eminence is not just about extreme talent but years of consistent effort in the face of adversity and the risk of loss.  After attending the Salvador Dali museum in London and the exhibition of his works while on show recently in Melbourne I feel somewhat qualified to give a lay impression of the man.  He worked tirelessly in spite of his wealth and influence with artists of the time to produce an extraordinary body of work.  He even began a movie with Walt Disney (email me for access to a copy).

As one final example consider one of the most revered artists in modern history, Leonardo da Vinci and his contributions to the world in comparison to Michelangelo.  While both are each considered masters, it was Michelangelo who positioned himself as having blue blood, while at one time Da Vinci was considered unemployable for his insistence on forever polishing his paintings (and thus never finishing them).  In my humble opinion I would rather be remembered as a Michelangelo than a Da Vinci

Who Won The Gold Coast Indy Super GP?

Mark Winterbottom, also known as Frosty won in the Ford Performance Racing car.  In the interview he credits his success to getting out in front.   There aren't many spots to pass on the tight Gold Coast circuit and you can hold people up so Congratulations to Frosty for getting out front and winning the surfboard on the Podium.

Winner of the Gold Coast Super GP Interview

The 80-20 rule

You've probably heard of the 80-20 rule.  What you may not know is that it is actually a scientific fact that is part of University statistics courses and was discovered by a guy called Pareto in the seventeenth century.

I was thinking about how to divide up some data and realized that dividing by five would give me the essence of the Pareto principle.  There would be five parts, each twenty percent.  One of those parts would be the 20, the remainder the 80.  Cool eh?

Well maybe, or maybe not but here is the kicker...

Count em out, 1, 2, 3, 4 fingers and one thumb.

Pareto is evidenced even in our own design.

Left hand female, right hand male, four fingers and one thumb.

Makes sense to me...

(& that's not saying much)

Internet Marketing Seminars Reviewed

Making money online is something many of us have thought about at some time or another.  There are so many programs and advertisements around that it is hard to know where to start.  Internet Marketing Seminars is a website I have created to help you figure out who you should trust.

I won't claim to know how to make money online but one thing I do know, is how to establish the credibility of a reference. That is something I was trained in and am qualified to do. In fact I have a Squidoo lens devoted to the topic.

Even if you can do this for yourself, when it is free to look on my website and you can gain from the experience of thousands of hours of study research and hard work I have done and shared with you for free, why wouldn't you?

So go on and take a quick look at the site. It is completely free and you probably won't be able to find it any other way than clicking on this Internet Marketing Seminars You can make money online, I have made sales already myself after only a few weeks and have many other benefits also, mainly freedom to work where ever there is an Internet connection. I hope you'll trust and do the same.

To Your Success
Michael Smale

Interview with Ken Wood

I have recently returned to Auckland NZ from a trip to Sydney Australia to interview successful businessman Ken Wood. A serial entrepreneur Ken was raised by an entrepreneurial factory and has been encouraged to start businesses in many senses. A great follower of Tony Robbins, Ken was able to meet his future wife Karen in the personal development arena. Together Karen and Ken own the promotion company that put on the wonderful Christopher Howard events in New Zealand, Australia and the UK.

Ken's background is technical as an electronics engineer. Luckily he was one of the few graduates employed in Australia's only chip foundry after finishing university. He realised early, lucky Ken, that Sales and Marketing where essential skills if he was to go in to business for himself and he took a half technical half sales job when Intel closed down the Australian foundry. Then he took a job he hated and that help to create the drive to start out for himself. During that time he worked in the evenings and on the weekend to research the market and come up with a business plan. What eventuated was mainly successful but held back by the technical partner who held the business back and eventually bought Ken's shares.

Ken then started setting up systems for Universal Events the promotion company based in Australia. He soon realised there was an opportunity for other small to medium enterprises to also use these systems and IT on Tap was born. IT on Tap gives small to medium businesses with between 5-100 employees in Australia access to enterprise quality systems and top technicians for a reasonable subscription fee. You can check them out on the web at IT on Tap