Joint Ventures - How to Create Make Money From Thin Air!
There are dozens of ways to Joint Venture with people and businesses; this example shows you how you can create something from almost nothing. I set up this joint venture some time ago around the mid 90’s. A training company approached me and asked for my help and guidance.
They were focused on selling high end management performance and health and wellness training. Many training companies have a major challenge when it comes to building their business. If they are delivering their service it’s hard to find the time needed to sell the service and vice versa - Almost feast or famine.
This particular organisation was a little better run than many I have come across and they asked me to help them out.
This is a short story of how Joint Ventures can make something out of almost nothing.
There are a number of mechanisms for delivering training. During the 90’s the internet was only just about getting going. At the time the main delivery mechanisms were traditional training and computer based training. Occasionally these delivery vehicles were blended together.
The training companies clients were predominantly technology based organisations like Oracle. We had already identified that organisations like Oracle had interactive learning centres. These were places their staff could use to get training at a time that suited them. Typically the courses available were Computer Base Training (CBT).
There were a number of resellers or agents who promoted and supported CBT courses and these were sold or licensed to Oracle and others.
We had already identified a possible CBT product that was a natural fit for the training business. We contacted the publisher of the CBT programme and negotiated a license that gave us the rights to the product.
We then identified possible resellers for the programme, called them up and met with them. The resellers were in the main pretty happy to offer the CBT product to their customers and so the deal was on.
In summary;
- We identified that our target market bought interactive training.
- Found a publisher who had created a product that complemented the training companies offering.
- Agreed a license deal with the publisher.
- Identified a route to market - Resellers of CBT programmes.
- Agreed commission payments with Resellers.
The point about this little project is that very little money was spent apart from some time and energy to make it work. There were no advertising costs, no salaries to pay and very low overheads (direct or indirect).
Money in the form of royalties or license fees did change hands but only after the resellers customers had bought or rented the product.
Whole businesses can be created by joint ventures or they can be simple little deals that mop up spare capacity or infrastructure so that everyone wins.
Happy Joint Venturing
Steve has a ton of experience in implementing joint ventures and includes working with the very large $20billion + enterprises all the way down to owner managed companies. For resources and joint venture support visit Joint Venture Cash Flow
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Tags:computer based training,guidance,interactive learning,joint venture,resellersRelated posts
Tags: computer based training, guidance, interactive learning, joint venture, resellers
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