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Do you want to learn more about efficient marketing strategies?

Released
2022-06-23

Are you interested in marketing strategies and wonder how to improve your companies marketing results? Learn more about joint ventures and referral programs in this press release.

Joint venture

What is joint venture?

The classic definition of a joint venture is a business arrangement in which two or more companies combine resources on a project or service. The length of the agreement and what resources it will include will vary. Participant companies typically agree to split any profits the venture creates. As a result, joint ventures are potentially advantageous for companies in need of expanded resources with minimal or no infusion of capital.  

How does a joint venture work?

Expanding upon our joint venture definition above, this type of agreement allows you to come together with one or more other individuals or businesses to carry out a specific project. Joint ventures are particularly common in the real estate, media, and technology sectors.

When it comes down to it, business owners enter into joint ventures to access new markets, tap into complementary skill sets, or combine resources. The concept of a joint venture can be confusing because there’s a degree of collaboration and independence.

Two or more people or companies come together in a joint venture for a specific purpose. However, the parties don’t have any legal responsibilities to each other beyond the scope of the joint venture.

The key is trust. You’ll be working with unknown entities from different companies, and in order to accomplish your shared goals you’ll need to trust them. You will be working closely with these individuals for what could be a lengthy amount of time. Are they the sort who might betray you? You’ll need to do your homework when the prospect of a partnership first arises and decide whether or not they deserve your trust.  

Benefits of using joint venture:

  • Flexible. Those who participate don’t need to form a new business entity to create the venture’s collaborative product. The partners are also not bound to one another after the expiration of the initial partnership contract
  • Your business can gain access to markets, resources, people, capital, technology, etc. that you wouldn't have otherwise.
  • You can reduce competition — especially if you're working with a direct competitor.
  • By working with another individual or business, you can more easily accomplish a goal or objective that would have been difficult on your own — which hopefully leads to an increase in profits.

Referral Program  

What is a referral program?

A referral program is a word-of-word marketing tactic that encourages your existing customers to share your brand with their followers, friends, colleagues, and family members. In exchange for their effort, a referral program usually offers customers a reward, such as a gift card, discount, points, clothes etc.

The beauty of a referral program is it helps businesses easily pinpoint their biggest brand fans, as well as track exactly where their new customers are coming from. A formalized program also makes it easy for customers to share your brand, with a dedicated referral page and messaging.  

This only makes it easier for your marketing and sales teams to nurture and engage customers because not only are these leads a good match for your business, but they're also familiar with your company and its reputation. Since they've been referred by someone they know, they have a reliable resource telling them that your company is trustworthy and produces a positive customer experience.  

How does a referral program work?

Referrals have proven to be one of the most valuable forms of marketing. Not only do most of us look to others for product and service recommendations, these recommendations come with a high level of trust.

Research reveals 92% of consumers trust recommendations from friends and family above all other forms of advertising. It makes sense. These are people who were once in your shoes and looking for a similar solution. If an existing customer is telling you how great a product is, you’re more likely to give it a try.

Benefits of using referral program:

  • Attract new customers at low cost, cost-effective strategy    
  • Bring in high quality customers  
  • Create an engaged workforce  
  • Referred customers are more valuable  

Conclusion

This is just a brief overview of the strategies. Both joint venture and referral program have massive benefits that can bring your business to the next level.  

Before you might think of using one of this marketing strategies, you must do more research about the strategies. And you also need to set up specific and relevant goals to see if the strategies suit your business.