Joint Ventures
#1
Has anyone on here done a joint venture before?

I've been reading the book "From Mediocrity to Millions" by Jay Abraham and it's absolutely amazing. I'm only half way through, and it's probably the greatest book on making money and changing your thought process around money I've ever read, and I've read pretty much every book out there on business and money. 

The whole book is essentially about creating joint venture deals and seeing missing value in the world. 

Core Concepts:

1. There are very few people that have all the money they want.

2. There are very few people that have capitalized on, or exploited, or tapped all the opportunities they want.

3. There are very few people who don't have problems that they don't know how to solve.

4. Most people don't know how to put concepts and elements together.

5. Most people in the world don't want to work very hard.

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Quote:For example (and this is pretty cool), as a middleman, I made a company $1 million in six weeks by going to apartment building owners for builders of new, starter homes. 1'd make deals with the apartment building owners to introduce their starter homes and low entry financing to all their apartment dwellers.

We gave a sales commission to the apartment building owner, and we paid up to six months of the cost of the rent if the apartment was vacant or until they rented it out again. We paid out a fortune, but we made a million dollars bottom line net/net for the builder just by doing that.

So get a copy of the Yellow Pages. Make a random list of a bunch of different types of businesses you're already familiar with. Make a list of all the things that people or companies buy either before, during and after they make the original purchase. Make a list of all the demographic factors -- locality, personality, affluence... any demographic or psycho-graphic factor. Call all the companies in the multiple different types of businesses on the first list. Ask them if they currently offer any of the items that you have on your "related purchases" list.

Let's say you choose graphics designer. They may design sales brochures... or maybe sales letters... or space ads... or packages... or billboards... or books... or websites... or any combination thereof. Pick whichever type you want, or all of them. Make a subsequent list of all the products and services that go along with their service. Let's take packages. Your subsequent list may include packaging companies that put the packages together, companies that manufacture the packaging, companies that ship the packaging, companies that sell the wrap around the packaging... Or take sales brochures. The list may be companies that train sales people, companies that sell other sales related items, companies that recruit sales people.

Key Point: The Mindset... What is the mindset behind doing these lists? There is an absolute, continuous relationship or correlation with the kind of buyer that buys that primary purchase ... and the fact that that buyer is constantly buying other items that relate to that category, or secondary purchases.

Once they trust a provider, that provider can use that goodwill... and you, as the middle person, can ethically exploit or commandeer that goodwill to introduce other related and relevant products or services to the buyer. So let's say you find that graphics designer, and you make a list of 5 or 10, 20 products or services they could be selling.

Then you call the graphics designer. And the first you thing you ask is: "Do you sell, represent or have any kind of a relationship right now with anybody in any of these areas? "

And if they say, "Yes," then they are confirming that you are right. There's an opportunity for you to get in there as a second vendor or as an alternate vendor, but that's limited yield. The main thing is it shows they are deal-oriented, and it's a great opportunity to add other products that they probably in the course of their business day don't have the time to even think about or negotiate the deal with.

If they say, "No," they are confirming that there is a great opportunity -- the field is wide open. There is no wrong answer. If they say, "Hey, I have a relationship with a printer," you can say, "Well, give me the other categories you design. If I can set up all the relationships with everybody else that are relevant to each of those other categories, would you joint venture with me?" And the odds are that that person is already entrepreneurially-oriented and will say "yes". 

If they say, "No," it doesn't matter. You can use the data and go to a generic competitor, a designer, and say: "Hey, your biggest competitor does that, you should be doing it too. I can put it all together, run it, manage it, do due diligence, make sure it flies and runs like a charm -- and you'll make a killing off of it without doing anything. " So once you get the mindset that I am trying to instill and install, you cannot lose.

Key Point: The Mindset... The mindset of the deal-maker is: My job is to find business situations that have one- or two-way untapped opportunity that would do three things:

First and foremost, it would benefit that company's clients or the clients of a partner company if it set up more than either of the two companies. Why? Because they're great products that I know both sides' clients need, would benefit from, and are finding on their own -- but not necessarily finding the best product provider or product.

Second, I see relationships that they don't. Third, left to their own devices, the odds are exceedingly high that the company that I'm approaching would never do it on their own. I have the opportunity to generate for them a significant, and a continuous -- or multiple continuous streams of profit income that might realistically exceed what they are making from the business itself.

And if that money will help them enrich their life, grow their business, and I am gifted with 3D glasses... I have the opportunity, the obligation and the unique benefit of having insight on what nobody else sees to put it all together.

Again, find a company that has a good product or service, one who has the capacity to sell a lot more, but on their own they won't. They are probably only penetrating one selling system, or one market, or one advertising medium.


Has anyone done anything like this? I see plenty of opportunities around my area, but I'm not even sure where to start on the contracts and that sort of stuff. There's not a whole lot of joint venture material out there to learn.

Here's the link to the free book if anyone wants it. I highly, highly recommend it: From Mediocrity to Millions
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