If you’re like most business owners, you probably view your own products / services as the main way to bring in revenue.
But there are many other ways to increase your bottom line – and some of them won’t cost you a penny!
My favourite strategy is setting up strategic alliances and joint ventures.
Let me explain.
A joint venture is where you simply find another company, another business, in a non-competing field.
They should share the same customer base as you. Once you found a company that would be a good fit, do a deal with them.
- You market to their list (their email or phone database) and pay them a royalty or commission.
- For example; if you sold expensive watches, you could do a deal with luxury car companies.This could be done in multiple ways.
- Let’s imagine you sold the average watch for $10,000 at 50% profit. Every sale would make you $5,000. You could go to the car dealership and put advertisements and brochures in with everyone who bought a brand new car.
- Think about it; these people are about to spend $120,000+ on a car.
- Don’t you think they’re the type of people who would also spend money on a nice watch?
- You could say to the car dealership that you’d give them $1,500 from every sale that was made through the deal.
- Would they say yes to that?
- Of course they would!
- Another way you could structure the deal is to offer a watch with every car that was sold.
- You would sell the watches to the car company for $3,000 less than retail.
- They would simply add the cost of the watch into the price of the car, and advertise a free $10,000 watch with every car purchase.
- That’s pretty powerful, don’t you think?
- Most people would be financing their cars. So to also get a $10,000 watch for FREE would be immensely valuable.
- The car dealership would sell more cars, and you would sell more watches without having to deal with customers.
- A third way to structure the deal would be to simply approach car dealerships, and offer to pay them X amount to advertise to their past customers.
- They might have a list of 1,000 people who’ve brought cars in the last 3 years.
- You get the dealership to send out a letter telling them about the beautiful watches you have available, and a special deal they’ve arranged for their customers.
- You might get 10, 20, 30 even up to 50 sales from that one campaign.
- Even if you only made $2,000 per sale because you gave a huge discount, or offered the $3,000 per sale to the dealership, you’re still making $20,000 to $100,000 from a simple campaign!
My hope is that after considering these strategies, you’re starting to see the opportunities available to you when you partner up with the right people.
If you’d like help with putting these strategies into practice for your business, give us a call at 1300 680 223. We can help.