Business Leverage: Joint Venture Partners and Affiliates

by Rick Braddy on October 30, 2010

in Online Marketing

In the recent survey we ran, we received a number of write-in comments.  One of the recurring areas in this, and prior, survey responses is that most of us small business owners and entrepreneurs aren’t getting nearly enough “leverage” in our businesses today…

What is meant by “business leverage”?

Jerry Myers knows a lot about business leverage, as shown in this great diagram from his blog, which I highly recommend:

As Jerry correctly points out on his blog, in business, gaining leverage is typically a matter of increased speed, reach and momentum.  And leverage is achieved by tapping into:

* OPM = Other People’s Money
* OPE  = Other People’s Energy
* OPI  = Other People’s Ideas
* OPT = Other People’s Time
* OPU = Other People’s Momentum
* OPR = Other People’s Relationships
* OPN = Other People’s Networks
* OPX = Other People’s Traffic

Obviously, the operative term here is “other people’s” – which is not under our direct control, but IS under theirs – if only they would cooperate with us and let us into their world…

So if leverage is so critical to business growth, how do we get it?
And why don’t we have more of it already?

Like most things, it’s a matter of where we invest OUR time, energy and money – as well as the systems, tools and processes we have in place and that we make a priority.  Most small businesses and online entrepreneurs spend the vast majority of our time on our own products, websites and in driving DIRECT profitable traffic to generate sales.

The difference between “proportional” results in business and exponential business growth is what we’ve been talking about – the number of business leverage points you employ.  One way to add this business leverage is through INDIRECT marketing and sales strategies; e.g., resellers, sales reps, affiliates, JV partners, ecosystem partners, franchising, licensing deals, etc.

In the online marketing and product launch areas, we can gain massive leverage from JV Partners and Affiliates. By “massive”, I mean orders of magnitude more sales with less effort – that’s massive leverage – tens to hundreds of times more sales with the same effort you put out to make fewer direct sales today.

How do you suppose companies like Citrix, Microsoft, Adobe, Google and every other big company makes billions of dollars in sales?  They have acquired and mastered MULTIPLE sources of business leverage over time.  They have thousands of resellers, VARS and partners and use “other people’s stuff” to generate massive business leverage.

It’s not a matter of magic, luck or being smarter – it comes from deliberately and systematically developing, nurturing and growing these points of leverage on a consistent basis – year in and year out.

We all know the words and concepts – “JV Partner” and “Affiliates”; however, most of us struggle to actually tap into these sources of business leverage that directly translate into wealth.  Why?

Because we are unable to find and forge the right relationships with these “other people”, and as a result we don’t get nearly enough ROI for our business investments… so why not?

The reality is, most of us don’t have the right systems, tools and skills in place today to attract, train, energize and motivate JV partners and affiliates – hence, we don’t have these “Other People” amplifying our business today.

I know this for sure, because I don’t have all of these things in place fully in our business today either… (something we’re underway to fix).

Guess what?  You’re not alone!  But we are going to solve this business leverage problem…

I have recognized that our business is suffering from a lack of engagement by most of the JV partners and affiliates we have “signed up”, too.  So I finally decided to take action and do something about it.  Fortunately, I have found the solution, which I’m now going to share with you…

So here’s what we’re going to do about it

I sought out a leading expert on Joint Ventures and Affiliate Marketing… and we are now engaging him to help us with these areas of our business and now I’m going to introduce him to you.

His name is Andy Hussong.  Here’s a bit of background on Andy:

“Andy worked behind the scenes with one of the most highly respected Internet marketing experts in the industry, John Reese, as his affiliate manager for over 5 years. During this time, Andy spent numerous years figuring out the best strategies for having a killer affiliate program, and in the process, developed a formula for not only attracting new affiliates and JV partners, but how to MOTIVATE them to take consistent action, as well.

Today, Andy is a coach, consultant, and trainer on how to apply these principles effectively, in order to create a dependable, consistent stream of sales from an army of motivated affiliates promoting your products, month after month. He’s also a devoted husband and father of 4 boys, a youth baseball coach, and die-hard Cubs fan.”

In case you don’t know who John Reese is, John is a multi-millionaire serial entrepreneur and leading online marketer, who taught many of today’s “gurus” how to become successful with their online businesses.  I can’t say enough good things about John Reese, as I have probably learned more about what works in online marketing from John than everyone else combined over the years.

John Reese was the first Internet marketer to have a million dollar day – to sell more than $1 million of information products over the Internet in less than 24 hours during a product launch – and Andy is an “insider” who knows a lot about how those kind of results are achieved…

And Andy has agreed to an interview, where he will provide us his direct insights and perspective

Per your recent guidance from the survey, you told me you wanted me to do a better job for you by interviewing more experts in various disciplines… so here we go…and believe me when I say, we are all in for a real treat!  I spoke with Andy at length yesterday about the interview for an hour, and I am truly excited about what we’re going to learn.

Here’s your opportunity to get YOUR questions on JV Partnering and Affiliate Management answered!

So, now I need your help and input again.  If you have specific questions, issues or sticking points on attracting and motivating JV partners and affiliates to gain the leverage you need in your business, please post them as Comments here on this blog entry, and I will do my best to have Andy address them for us in the upcoming call, which will take place the second week of November.

Please post your questions, issues and sticking point comments for Andy now
(just Leave a Comment below)

Here’s a link to the interview

Thank you.
Rick

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{ 22 comments }

Calvin Froedge October 30, 2010 at 3:07 pm

Hi Andy,

Glad you’ve agreed to help us noobies out! So here’s my situation. I’m a technology guy. I know how to build really, really cool stuff – and make it look good, too! I can even get on the phone and push something once in a while. I developed this product for vacation rental owners, mangoreservations.com, a few months ago, which takes a $5000 proposition for a bad ass vacation rental website to a $50/month proposition – including online booking. It’s a great product – looks great, works great. I’ve put ads on various affiliate sites out there – but I haven’t been able to pick up a single affiliate who has really pushed sales for me. I’m thinking that I need to headhunt my own ‘ideal’ affiliates and really work closely with them. My question is – how do I find my perfect affiliates? And how do I get them to take me seriously enough that we can establish a serious relationship, start planning and moving, and make some real money?

Jeff Pezzella October 30, 2010 at 4:25 pm

Hey Rick and Andy:

Rick: Thanks for such an insightful post. The breakdown of leverage points via the *OP… series you created was really helpful and a great visual to share with my own clients.

Andy: I was wondering how much time you research potential JV’s before you engage them in conversation? When you worked with Reese, did you have a team that did the research? Was that then forwarded to someone whose sole purpose was to contact the JV? The biggest stumbling block I face in my own business is not having enough time to research and recruit JVs. Your thoughts would be great.

Rick Braddy October 30, 2010 at 5:25 pm

How to Get More Business Leverage from Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Dan Stanley October 30, 2010 at 6:05 pm

Thanks Rick for arranging this interview with Andy. Here’s my question:

The advice I keep hearing is that you should focus on how you can help your potential JV partners rather than approach them with how great your product is. If I don’t have a big email list yet, what are the biggest ways I can help out my potential JV partners? Thanks.

Rick Braddy October 30, 2010 at 6:35 pm

"Give me a lever long enough and a place to stand and I will move the entire earth." ARCHIMEDES (C. 287 – 212 B.C.) http://bit.ly/d1Jfm2

Rick Braddy October 30, 2010 at 8:00 pm

Your Questions About Joint Venture Partners and Affiliates Answered http://bit.ly/d1Jfm2

Jennifer Duaine October 30, 2010 at 8:29 pm

Rick,

Congratulations on finding such a knowledgeable partner to work with! I would love to know the best possible source to go to get started with affiliate marketing.

I would like to design an attractive blog page, that ‘connects the dots,” to my business (real estate) and lifestyle and appropriately creates space to share these, while also working with a few affiliates to build an online business.

I have been doing some research, but have been busy getting up to speed with inspiration for content, and work, i.e. the market, etc., so it would be great to just be pointed in the right direction whether a book or website! What do you suggest?

Thanks again and congrats!

Jennifer Duaine
jennduaine@gmail.com

Jeffrey Pezzella October 30, 2010 at 9:25 pm

RT @rickbraddy Business Leverage: Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Rick Braddy October 30, 2010 at 10:01 pm

Jennifer,

On your question about getting started with affiliate marketing, you might want to get my (dated but still useful) “Affiliate ATM” e-book:

http://affiliateatm.com/

I used to sell the Affiliate ATM as a product years ago for $97 on ClickBank, but now it’s available for free. It’s a fairly comprehensive product for those who are new to affiliate marketing. Affiliate Marketing 101 really hasn’t change that much… (except it is much more competitive today with so many online marketers who are better educated than ever, so it’s not nearly so easy to make thousands per day at affiliate marketing today as it was back in 2006 when this product was originally released).

Another great resource is the Warrior Forum, where you will find a lot of useful information (and some not so much, as with most forums). It’s where the who’s who of affiliate and Internet marketing frequent, so well worth probing around: http://www.warriorforum.com/

Andy and I will be looking at the product vendor-side of the affiliate relationship – how to attract and motivate JV partners and manage affiliates as a product vendor.

Thanks for your comments. Hope those links are helpful.

Good luck with your blog and online business!
Rick

David Dixon October 30, 2010 at 11:54 pm

Business Leverage: Joint Venture Partners and Affiliates | Product … http://bit.ly/b0fRlO

Andrew October 30, 2010 at 11:54 pm

Business Leverage: Joint Venture Partners and Affiliates | Product …: In the recent survey we ran, we received a… http://bit.ly/aCrvzg

Jennifer Duaine October 31, 2010 at 1:06 am

Hey! Exactly what I wanted to talk to you abut!RT @rickbraddy Business Leverage: Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Jennifer Duaine October 31, 2010 at 1:06 am

Hey! Exactly what I wanted to talk to you abut!RT @rickbraddy Business Leverage: Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Jennifer Duaine October 31, 2010 at 1:06 am

Hey! Exactly what I wanted to talk to you abut!RT @rickbraddy Business Leverage: Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Jennifer Duaine October 31, 2010 at 2:01 am

Hey! Exactly what I wanted to talk to you about!RT@rickbraddy Business Leverage: Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Jennifer Duaine October 31, 2010 at 2:01 am

Hey! Exactly what I wanted to talk to you about!RT@rickbraddy Business Leverage: Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Jennifer Duaine October 31, 2010 at 2:01 am

Hey! Exactly what I wanted to talk to you about!RT@rickbraddy Business Leverage: Joint Venture Partners and Affiliates http://bit.ly/d1Jfm2

Jennifer Duaine October 31, 2010 at 3:12 am

Hey! Exactly what I wanted to talk to you about!RT@rickbraddy Business Leverage: Joint Venture Partners and #Affiliates http://bit.ly/d1Jfm2

JeffS October 31, 2010 at 11:32 am

I”m interested in Andy’s thoughts comparing the advantages/disadvantages of organizing a coordinated, one-time, date-specific launch with your affiliates, versus running mini-campaigns, where you make the new info available to your affiliate network at large, and they take it and run their own campaigns at their convenience.

Sanjay Singh October 31, 2010 at 2:27 pm

Hi Rick

Thanks for arranging the interview.

My question for Andy…

Our products (software) are generally priced around the $70 mark.

We have had several attempts at working with affiliates but none of them have been able to generate much revenue.

How do we find and work with affiliates who would be able to generate sufficient quantities of sales for it to be worth THEIR and our effort.

Thanks
Sanjay

Scott October 31, 2010 at 11:21 pm

Hi Rick,

Great post about leverage. It reminded me there are so many ways to leverage other people’s businesses.

Andy, The affiliates I’m wanting to recruit brick and mortar businesses that are for the most part in-experienced internet marketers. The extent most are active online is a brochure web page.

1. How do I recruit, train and show these businesses the value of investing their time and resources in this affiliate project?

2. What are the basic elements of the system required to recruit and manage affiliates?

3. I am launching a membership site with a recurring payment of $27/mo, what is a reasonable affiliate commission to pay out? What is the best commission structure?

Thanks for all your help.
Scott

Michael November 2, 2010 at 10:58 am

Hey Rick,

What’s the best way to keep affiliates engaged and excited about promoting our products?

We typically send out an email to our affiliates once a month with new promotions/banners. Do you recommend more personal interactions? Is segmenting affiliates based on their potential to generate revenue worthwhile?

Thanks,
Michael

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