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| Page: Definition Joint Venture |
Joint Venture (JV):
A Joint Venture, often abbreviated as JV is an agreement between two or more businesses/corporate bodies to mutually undertake a business project to the benefit of both parties. Such an agreement can last for only one project or for a sometimes lifelong partnership. There are Joint Ventures between mega corporations (for example NBC, ABC and Major League Baseball have formed a Joint Venture and call it The Baseball Network) and also between two single (Internet) marketers.
The reasons for forming a Joint Venture are various. In general they are done because the resources of both partners complement each other so that the goal of a business activity can be accomplished easier, faster and more profitable compared to acting alone.
The most common Internet
marketing Joint Ventures are formed when one partner has
created a product but has no or
only a small list and the other has a big list of targeted
subscribers. The agreement being that the product is
promoted to the list against a commission for the list
owner. In such a case a JV relationship is very similar
to the relationship between a product merchant and his
affiliates
.
The product would have to match the subscriber list, of course.
That is, no owner of a list of golf enthusiasts would promote a
pet care product to his subscribers and a JV between those two
marketers would make no sense.
But a new keyword
research tool offered to a list of
subscribers of a SEO
newsletter would be a
perfect match and would comprise a real win-win situation
for both partners. The product creator could boost the
number of sales and the list owner would earn his agreed
share of the sales without much effort.
[Joint comes from Latin junctus,
jungere= to join
together;
Venture is a short form of adventure and comes from
Latin aventura = something about to happen, from
advenire
= to come about,
arrive]
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