How to Increase your Business Profits with Referral Marketing and Joint Ventures

How to Increase your Business Profits with Referral Marketing and Joint Ventures

Referral marketing and joint ventures are two of the best ways to get sales and increase your business revenue and profits. These two methods are both applicable to online and offline marketing tactics, and can be very beneficial to business owners. So, without further ado, let’s look at each method beginning with referral marketing.

Referral Marketing
Referrals come from the word ‘refer’ so it simply means potential people, customers and prospects that are referred to you by someone. And who will possibly refer potential customers to you? Well, if you are aware of the various marketing methods businesses usually adopt, you will realise that your referrals will come from many sources, most notably your family, friends and the network of people you have built.

And you should probably do the same for them. If you come across a prospect looking for a particular product or service that you do not offer but you know of someone who does, then it is best that you refer the prospect to him or her. Both the prospect and the person you refer to will love you for this and they may refer future customers to you in return.

Think of it as a win-win situation for both you and your referral. Referral marketing, if done properly, adds value both to an individual as well as to a network that an individual belongs to.

Next, let’s get into doing joint ventures.

Joint Ventures
Doing a joint venture (JV) is probably one of the best and most profitable ways to get widespread exposure, attract more customers and gain huge profits. But who can you do a JV with? The most obvious choice will be your competitors in the market you are targeting.

However, I will strongly advise that when you are first starting out, to approach numerous fledgling and newer business owners just like yourself or those with just slightly more experience than you, instead of targeting the bigger, more established companies. Once your business is quite reputable and you have done several successful joint ventures, you can then approach the more established companies for joint ventures.

Regardless of whom you approach for a JV though, it is prudent that you follow the following joint venture guidelines to avoid being turned down or ignored.

  • Ask yourself what your JV partners will want by putting yourself in their shoes.
  • Think of equal gains for you and your JV partners. Or better, think in terms of benefiting your JV partners more than you.
  • Tailor the JV not only to your market but also your JV partners’ market and the situation they are in.
  • Offer something unique, innovative and special for them.
  • Ask them whether they will be interested in doing a JV and where you can send them a proposal.
  • Be precise, clear and personal in your proposal.
  • Compliment them and their business and be sure to state all the benefits (not just financial) of the JV in your proposal.

The beauty of doing a JV is that you will be working with and not competing against your potential competitors. In addition, you will be able to leverage on their marketing techniques and current pool of resources and customer base to promote your business. So this is definitely a profitable way to promote your business if done correctly.

And there you have it, basic ways to improve your business profits through referral marketing and joint ventures. So, the next time you are scratching your head about how to get potential customers, consider adopting these two techniques in your marketing plan.