What are Joint Ventures?

ebusinesstutor · 05-14-2007, 01:33 PM

Since we have this lovely new forum John created for us, I thought I would add my own thoughts on what a joint venture is.

A joint venture is where two or more people come together to combine their skills, knowledge, products and marketing efforts to create a successful business, project or campaign.

You can see the Wikipedia definition here:
http://en.wikipedia.org/wiki/Joint_venture

Here is an example from my own experience.

I have a joint venture with my programmer for one of my web sites where I pay him a percentage of the income rather than paying him by the hour.

The benefits for him? He gets to build long term equity and earns more than he could by just billing by the hour.

The benefits for me? My programmer has major incentive to keep my systems up and running as he doesn't get paid unless they are working well.

Joint ventures need to be mutually beneficial to be successful.

Jesse Vlasveld · 05-15-2007, 06:02 AM

Great explanation on the subject. And a nice example to go with it.

GreekCrusader · 06-05-2007, 06:47 AM

Hi ebusiness tutor, how many JV have u done in your whole life?

ebusinesstutor · 06-05-2007, 10:19 AM

Quote:

Originally Posted by GreekCrusader

Hi ebusiness tutor, how many JV have u done in your whole life?

Never counted.

I don't consider myself an expert on joint ventures, but I do participate in them regularly.

At any given time, I have at least 10-20 partners I work with on various promotion.

sourcer · 06-06-2007, 05:43 PM

Thanks for explication ebusinesstutor, now I can understand what is this forum about without asking dumb questions

chicgeek · 06-08-2007, 09:17 AM

explication
explanation

backgammonnn123 · 08-24-2007, 09:06 PM

But what kind of contract is best to sign for joint ventures? My experience tells me that the best joint venture deals are between 2 people that have known each other for a long time and can trust each other in doing deals like this

monhunter · 08-25-2007, 11:24 PM

Join venture help people to start there buiness together

upsonians · 09-28-2007, 06:52 PM

very hot explaination.green for u.

kidiezone · 10-08-2007, 04:06 AM

Joint ventures are like marriage. Both the partners need to understand the core business and respect each other to keep the relation live.

xoomtech · 10-09-2007, 04:03 AM

Great explanation on the subject

wisam74us · 06-21-2008, 06:15 AM

I am contributing in many other forums, this is really a unique idea first time seen something like that .. It is really useful

adomaindeal · 06-24-2008, 08:45 AM

Great explanation on this subject.

Bob Barr · 06-24-2008, 10:21 AM

Quote:

Originally Posted by backgammonnn123

But what kind of contract is best to sign for joint ventures? My experience tells me that the best joint venture deals are between 2 people that have known each other for a long time and can trust each other in doing deals like this

While knowing someone for a long time can be a tremendous benefit, joint ventures actually can work between two complete strangers. The key is to initially limit your risk until you've spent some time developing a level of trust between the two of you.