Joint Venturing Your Way  to Wealth; How to Start With Nothing and Make a Literal Fortune With Little or No Risk... 

By Michael Enlow.  Reprinted by permission.  Original at http://www.enlow.com/jv.html (in late 1999)

Preface

Few believe me when I tell them of the fortunes they can make starting with nothing...  

My system is simple. It makes use of the fact that most people don’t understand or appreciate what it takes to create more wealth and income - 

USING THEIR OWN EXISTING BUSINESS ASSETS OR OTHER'S OVERLOOKED ASSETS! 

"I am appalled at how few business owners leverage off of their hard earned assets. Fortunes have been made by following my simple step-by-step system. This creates wealth for EVERYONE! My program is not a self serving "I win and you lose" program. It is a program where I share my incredibly simple techniques for creating profit centers, starting from scratch, where everyone wins".   MICHAEL E. ENLOW 

"The teacher, if indeed wise, does not bid you enter the house of their wisdom, but leads you to the threshold of your own mind."   Kahil Gibran   

How To Create Wealth From Other's Overlooked Assets And Be The "Knight in Shining Armor" For Doing It! 

Sometimes I feel like I have the only pair of "macroscopic glasses" (to see the big picture) when examining businesses and the many opportunities for creating additional cash flow. 

Almost every business I consult has no less than 3 (and often 10) different ways to almost immediately create additional cash flow from their existing efforts, clients and advertisements. 

What I will be sharing with you is one of the most simple of these concepts I call "Joint Venture Alliances" or Co-Ventures. I will assume you have no knowledge of marketing for the benefit of those of you who are less familiar with my marketing techniques. 

Let's begin. 

I've discovered many working marketing concepts and systems. All of them are centered around one thing. LEVERAGE! They are centered around HOW to leverage to get greater profits and greater satisfaction out of every dollar spent and every effort expended.  

Over the years, I've learned, every business has one need in common – the need to create more cash flow than they spend on overhead. Tens of thousands of businesses do this very successfully. Unfortunately, they overlook many opportunities to gain greater leverage and reap greater rewards from what they do. It takes just as much energy to create an advertisement that gets 100 sales (or leads) as it does to get 1000. I teach how to test headlines, packaging, pricing, etc. to gain greater leverage on your advertising. However, this report is going to address one of the fastest and easiest ways you can teach almost any business owner to INCREASE HIS OR HER PROFITS BY AS MUCH AS 300% and do so with nobility. 

One of the most ridiculous mistakes and oversights in marketing is the failure to recognize the true value of the relationship a business owner has with his or her customers, vendors and others they deal with on a daily basis. Properly utilizing this overlooked asset can mean thousands and often tens of thousands of dollars in increased revenue and the status of nobility as well. 

I'll explain. 

When someone makes a purchase they prefer buying from someone they trust and who has treated them fairly in the past. If I were to rent a "cold list" (a list of names of people who know nothing about me, my company, product, service or offer) I may, with a well crafted sales letter or presentation, get a 1 to 3 percent response on the offer. However, if you go to the owner of that same list and structure a deal where the owner writes or presents the VERY SAME OFFER, you will see a response that is so much greater it boggles the mind. I've seen responses to this type of offer (we'll call this an "endorsed offer") that skyrocket to as high as 33%! This is an INCREASE in response of between 1100 - 3300 percent! 

Accordingly, you can literally earn a fortune by showing others how to use this principle by creating win/win deals. A good example of using this concept happened this past Christmas with a client of mine who is in the pharmacy business. My client had approximately 10,000 customers on file, all of which loved and trusted my client for the excellent service they had received over the years. However, I discovered my client had never ever used this asset of trust to do a noble win/win deal to properly utilize this incredible asset. 

Unfortunately too many business people are myopic (nearsighted – cannot see the big picture) in their observation of their business. They fail to realize that although they sell pharmaceutical products and supplies, all their customers still purchase other products and services like dry cleaning, groceries, cars, insurance, accounting services, etc. The relationship with their customers provides a business owner with the incredible opportunity to use the "endorsed offer". By doing a Joint Venture, wherein they recommend or refer their customers to another professional and noble company, they could take a percentage of the profits from the newfound business they create for the company they endorse. 

In this particular situation I learned they were friends with a jeweler in town and Christmas was rapidly approaching. I saw an instant jackpot. By the way, these deals can be created without a prior relationship with the vendor you will endorse. 

Here's a brief overview of what can happen
with Joint Ventures or "Endorsed Offers".

I immediately contacted the jeweler and interviewed him to get the "golden nuggets" to create a letter for my pharmacy clients to share with their customers. I learned he regularly flew to New York to purchase diamonds, emeralds, rubies and other precious stones but, more importantly, he purchased in quantity by teaming up with a fellow jeweler in New Orleans where he literally saved a fortune by buying in bulk.   Sales Letter Example. 

We drafted a letter something like what follows:

This letter of endorsement became the pharmacy's "Christmas Card" for this past year. We had pre-arranged a special deal where XYZ Pharmacy would receive half of the new found profits from everyone who came in. Because of that we earned an incredible $87,550 mailing Christmas cards instead of the $2500 loss one would normally have when mailing 10,000 people. 

The jeweler was delighted after a brief "marketing education" of how a certain percentage of these new-found customers would become lifelong customers. 

This education is the key to getting the most from deals like this. 

Let me share the approach... 

First, you have to understand that most people fail to realize the life time value of a customer. This is where the Joint Venture associate you wish to approach has to be educated. 

Few realize the "residual value" of newfound customers. Not all customers will come back again. This will be true even if you give them the best quality, pricing and service. However, a certain percentage of them will come back. In this case over 2780 people took the pharmacist up on his offer. The jeweler gave away the lion's share of the front end profit but he will earn *much more* than most realize. Here's a hypothetical example: 

Assume only 10 percent of those who took advantage of the offer were to return, the following year and the average purchase the following year was only $500. The jeweler not only profited from the initial deal but he will earn an additional $70,000 he may have never had if it wasn’t for the pharmacist's referral. Jewelry is generally "keystone" pricing (meaning the jeweler sells for approximately a 100% mark-up). If only ten percent of the people return and spend an average of $500 that will bring in an additional $139,000. 

At keystone pricing that's an additional $69,500 profit the jeweler will enjoy from this deal! 

This doesn’t even take into account the fact that satisfied customers may return year after year creating profits the jeweler would have never enjoyed without the referral and Joint Venture of the pharmacist. Are you beginning to see The possibilities? They are astronomical! 

Deals like these can be made with car dealers, contractors, dentists, restaurants and almost any kind of business you can imagine. The beauty of it is that THIS IS A WIN/WIN DEAL FOR EVERYONE and you get paid for arranging the deals. 

Other Approaches 

In the example above we used Christmas as a "reason why" but a host of reasons to do deals like these can be created... You may approach the market with reasons like: 

*"We’ve just discovered the most incredible..." 

*"We've learned of a secret method..." 

*"Since my friend is just getting off the ground..." 

*"This is the most incredible way for you to..." 

*"It's only fair we tell you before the rest of the world learns." 

*"We felt we would be remiss if we didn't get you the first opportunity to try..." 

  The number of approaches are unlimited! 

I can't think of a single business that couldn't make more money by properly utilizing their customer base through endorsing a quality product or service. 

  How Do You Get These Deals? 

One of the most successful ways to get deals like these is to approach the target market with a pitch like this....

"If I show you how to properly utilize an asset you are overlooking and make you look like the "Knight in Shining Armor" would you be willing to share the new-found profits I make for you at a rate of fifty cents on the dollar?" 

There are no hard and fast rules. You should structure the deal in whatever way you must. The above has proven itself to be a great approach especially when you explain you'll guarantee the cost to do the deal and take your profits after the costs are returned. I will fund these kind of deals all day although it is not necessary as most will "see the light" after a few minutes. 

How To Insure You Get Paid? 

I use a contract of non-disclosure, stipulating the terms of the arrangement, before I ever share the secret to using this incredible concept. 

Again, the rules are not set in granite. You should be as flexible as you need to be to get the deal. It all depends on the size, volume and type of deal and your involvement in the deal. 

Here's a copy of our "Intellectual Property Agreement" which should protect you in most cases. Feel free to use it, and make modifications as needed.

Enlow Enterprises, Inc. Marketing Technologies & Innovations P. O. Drawer 429 Magnolia, MS 39652 Private Phone: (415) 913-7545 Private Fax: (888) 645-3597

Marketing Consulting & Intellectual Property Licensing Agreement

This AGREEMENT is made this the ___ day of ________. 19__, between Enlow Enterprises, Inc., d/b/a Marketing Technologies & Innovations, (hereinafter called Company) with an address of 6052 Magnolia/Progress Rd; P. O. Drawer 429, Magnolia, MS 39652, and ___________________________ (hereinafter called "Client" with an address of ____________________________________.

RECITALS:

A. Company has developed and is in the business of developing and providing marketing strategies, products, services, and other intellectual and innovative marketing programs, which have useful application in the business community.

B. Client desires Company to tailor existing or develop and provide marketing strategies for the promotion of Client's products or services defined herein as: ____________________________________________

C. Company desires to tailor existing marketing programs or develop and provide new marketing strategies for the promotion of Client's products or services.

TERMS OF AGREEMENT

In consideration of the foregoing and the mutual promises contained herein, Company and client agree as follows:

1. Services to Be Provided

Company shall, on a best effort basis, create a marketing strategy/campaign, hereinafter referred to as the "marketing plan" for Client, which may include:

1.1 Development of a marketing program which may include sales promotions, media advertising and/or the direct mailing of promotional materials.

1.2 Research and arrangement for the production of such advertising and promotional materials and make decisions for the placement of advertising with appropriate media/sources.

1.3 Assist in the conduct and processing of direct mail programs directed to potential customers for Client's products or services.

1.4 Periodically provide verbal reports, opinions, and advice regarding the marketing of client's products or services for the purpose of enhancing their acceptance in the marketplace.

2. Commitment To Implement Marketing Strategies

Client agrees to implement and to spend a minimum of $______in the initial implementation of the marketing strategy designed by Company within 30 calendar days after receipt by client of Company's presented plan and advertising or promotional copy.

Client further agrees to strictly comply with Company's instructions, subject to modification by Client only based upon a mistake of fact or a potential violation of applicable law and shall make no changes in the "marketing plan" without written permission by the Company.

3. Fees and Costs

Client shall pay Company a fee for services as described below:

Following the forty-five (45) calendar day period immediately following the implementation, publication, or use of the marketing plan Client will remit to Company ___ percent of gross revenues less marketing costs. However, all marketing costs must be presented by Client, in writing before using said concepts. Should Client use said services without providing the above referenced report, Client agrees to pay a flat fee of ______ of gross revenue generated by Company's marketing concepts and/or intellectual property.

3.2 Client shall secure quotations for the cost of graphics design, typesetting, printing, mailing, advertisement space in selected media, and other out-of-pocket costs to implement the strategy and, subject to the limitation in paragraph 3 hereof, Client shall advance all payments to those parties in a timely manner.

3.3 Client agrees to provide, along with its payment to Company, statements of revenues and expenditures for the period covered by the payment. Company its agent or employees, shall have the right to examine or audit Client's books and records at any reasonable time for the purpose of verifying the accuracy of fee payments. Should such audit or examination determine that fees to Company have been underpaid, Client expressly agrees to immediately pay the amount of the underpayment to Company plus all out-of-pocket costs incurred by Company in the conduct of its audit, examination or legal costs.

4. Continuation of Existing Programs:

Client is free to continue implementation of existing marketing programs, promotions and/or strategies so long as Client creates and uses a separate revenue account number for the collection of all revenues generated by the use of the Company marketing strategies.

5. Property Rights:

5.1 All of the information provided by Company to Client during the term of this agreement in the form of advertising copy, intellectual concepts or promotional literature is information proprietary to Company and shall not be used other than as expressly provided in this Agreement without Company's written authorization.

Client shall not provide or otherwise make available any information, proprietary to Company to any other person, corporation, partnership or association. An owner, partner or employee of Client shall be responsible for the supervision, management, control and non-disclosure of said proprietary information during the term of this Agreement.

5.2 All information delivered by Client to Company which, at the time of delivery, Client designates as being confidential, shall be maintained as confidential by Company except as may be required in the performance of Company's duties hereunder, and except as such information may be incorporated into advertisements or promotional literature prepared by Company for Client.

5.3 In the event that Company conceives of and provides to Client inventions, innovations and/or other developments (which are not in the public domain) relative to the business activities of Client during the term of this agreement, all such innovative developments shall be and forever remain the property of Company, subject to an exclusive license granted to client to make, use and sell products and services derived from or including such innovative developments without payment of royalties for so long as this agreement or any extension hereof is in effect. After termination of this Agreement or any extension hereof, Client shall have the right to license from Company the right to make, use and sell products and services derived from or including Company's innovative developments upon such terms and conditions as the parties might agree.

6. Assignments:

The Agreement and any of the marketing programs, sales promotions, marketing strategies, advertising copy and promotional literature to which it applies shall not be assigned or otherwise transferred by Client during the period of this agreement and any assignment or attempted assignment or other transfer shall constitute a material breach of this Agreement

7. Duration of Agreement:

This Agreement shall continue for a period of ___ consecutive months from the effective date set forth above, unless earlier terminated as herein provided, except that all obligations regarding the payment of fees, the maintenance of confidentiality or proprietary and confidential information and the return of such information shall continue in full force and effect in accordance with their terms. Client agrees to continue payments of the assigned percentage for the "marketing program" and/or "intellectual property" developed by Company for a period of _____ (__) years.

8. Termination:

Until the expiration of the forty-five (45) calendar day period immediately following the publication of the first advertisement, utilization of the first intellectual concept, or the mailing of the first direct mail promotion. Client may terminate this Agreement by giving written notice of such termination to Company at the address as specified herein. Seven (7) calendar days following such termination, Client shall, at its option:

8.1 Pay Company $150,000 to purchase a non-exclusive license to use the intellectual concepts, ad copy and promotional materials provided by Company to Client during the term of this Agreement or

8.2 Return to Company and certify in writing to Company that it has returned all advertising copy and promotional materials developed by Company and delivered to Client during the term of this Agreement and that said materials, concepts, or intellectual property will not be used in any form thereafter by Client. In the event any of said materials are used by Client contrary to the terms of this agreement and without having purchased the non-exclusive license, Client shall be required to pay $250,000 as liquidated damages to Company within thirty (30) calendar days following demand thereof.

8.3 After the expiration of the forty-five (45) calendar day period, either party may terminate this Agreement by giving thirty (30) calendar days written notice to the other party. Upon such termination, Client shall, at its option:

8.3.1 Purchase from Company a non-exclusive license to use the advertising copy and promotional materials provided by Company to Client during the term of this Agreement for a fair and reasonable price which takes into account the results achieved by the marketing strategy to the date of termination. The projected future sales to be generated by the continued use of the marketing strategy and the percentage of revenues which Company would have received over the subsequent calendar months had the Agreement continued in force, but in any case not less than $ 250,000.00 (Two Hundred Fifty thousand dollars.)

8.3.2. Within seven (7) calendar days following termination, return to Company and certify in writing to Company that it has returned all advertising copy and promotional materials developed by Company and delivered to Client during the term of this Agreement and that said materials will not be used in any form thereafter by Client. In the event of intellectual concepts of marketing that were previously not used by Client, said concepts are protected under this agreement and should any of said materials be used by Client contrary to the terms of this Agreement and without having purchased the non-exclusive license. Client shall be required to pay $250,000 as liquidated damages to Company within Thirty (30) calendar days following demand therefor.

9. Attorney Fees and Costs:

In any action or proceeding arising out of this Agreement, the prevailing party shall be entitled to attorney's fees and costs incurred in connection with the enforcement of the terms and conditions hereof.

10. Warranties and Representations:

Company warrants that it will use its best efforts to generate substantially increased gross revenue opportunity. The parties recognize that Company cannot and does not warrant any particular level of success or that any increase in gross revenues will result from its efforts.

10.1 Client represents and warrants that it will defend and protect and hold harmless Company, its successors, assigns, customers and the users of the products and/or services which are promoted or sold under this Agreement, against all suits at law or in equity, and from all damages, claims and demands for actual or alleged infringement of any copyright, trademark, trade name or patent.

11. General Provisions:

Notice. All notices from one party to the other shall be in writing by personal delivery or by mail, registered or certified, postage prepaid with return receipt requested. Any such mailed notice shall be deemed received ten (10) business days following the date of posting in the U.S. Mail. Mailed notices shall be addressed to the parties at their respective addresses as they appear below:

To Company: ENLOW ENTERPRISES, INC.

P. O. Drawer 429

Magnolia, MS 39652

Attn: Michael E. Enlow, Pres.

To Client: Client: ______________________

___________________________________

___________________________________

___________________________________

Attn: _______________________________

Each party may change its address for notices by providing written notice.

11.2 Governing Law: This Agreement shall be governed by and construed in accordance with the laws of the State of Mississippi.

11.3 Effect of Partial Invalidity: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect without being impaired or invalidated in any way, and each party agrees to interpret and apply the Agreement to implement its intent to the extent permitted by law.

11.4 Waiver: No term or provision of this Agreement shall be considered waived and no breach shall be excused unless such waiver or excuse of breach is in writing and signed by the waiving or excusing party. No written waiver or excuse shall constitute a waiver or excuse of any other or subsequent breach.

11.5 Entire Agreement: This Agreement supersedes any and all other agreements, either oral or written, between the parties and contains all of the covenants and agreements between the parties. Each party, by accepting this Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise have been made by any party or anyone acting on behalf of any party which are not embodied herein, and no other agreement, statement or promise not contained in this Agreement shall be valid or binding unless such agreement is made in writing, signed by both parties and executed at a date subsequent to the date of this Agreement. No modification of this Agreement shall be effective unless in writing and signed by both parties.

IN WITNESS WHEREOF, the undersigned have executed this Agreement by a duly authorized representative effective the first date written above.

Company: _______________________

By: ____________________________

Title: ___________________________

Client :__________________________

By: ____________________________

Title: ___________________________

As I said, you may want to change the amount you charge to share the deal, based on the previously mentioned factors. However, you can earn a very lucrative income using this concept by simply showing business men and women how to redeploy their existing assets.

How Do I Get Started?

Getting started is easy. All you have to do is identify the deal and write a letter similar to the one below. Also, be sure you follow up the letter with a phone call. DO NOT share the intellectual property you have to offer until you have your agreement signed and "in hand" by both or all parties who will be participating.

Here's a sample "door opener" which will ring your phones off the hook:

You can be assured that you will get the call. Just set up a voice mail box and be sure to find the matching product or service before you mail the letter.

How Do I Know Which Products Will
Work with the Clients I Get?

Well, there are no set rules. So many products will work when endorsed by the customer owner. However, you will do much better to "brainstorm" over a prospective client's offer before you make the offer. You should even make a few calls to be sure you can put the offer together. As I said earlier, you need to educate one side regarding the "lifetime value" of gaining new customers in order to get the best deal. You can often get as much as 100% of the profit of the sales made by your endorser by simply explaining this misunderstood marketing principle.

How To Get the Sweetest Deals.

If I were starting from scratch I would seek out product sales companies. These deals are the easiest to get. When you work with attorneys, accountants and others the money trickles in slowly. With product sales the money comes in over a two to three week period.

Look for those companies who already have an established customer database and, more importantly, have a good, strong relationship with their customers. A stronger relationship provides a stronger endorsement. A stronger endorsement provides greater profits. Here are some examples of companies who have a strong relationship with their customers: newsletter publishers, software vendors, chiropractors, radio stations, internet service providers, insurance agents, pharmacists, landscaping experts, etc. They're too numerous to list. Just look for deals where the endorser has a lot of contact with the customer. Preferably, they should at least be in contact with their customers on a monthly basis.

How Do I Decide What to Offer in A Joint Venture?

This can be rather complex depending on the deal. One of the reasons this concept works so well is that the endorser is making the pitch and he or she ALREADY has the trust of the customer. You should try to find the deal that will yield the greatest possible income. Not everyone who sees their chiropractor would be interested in landscaping, dry cleaning, or radio advertising. So, your offer needs to be one of general appeal to the market. In the case of a chiropractor, I would look for a product which would help people who live in pain or have disabilities. This may be a written report, shark cartilage, or whatever, as long as it meets the demographics of the market. Believe me, no one who has a product or service is going to turn you away as long as the numbers (profit potential numbers) are in their favor.

The world is a big ocean of products and services. You only have to find the one or two products which will yield the greatest possible success to your clients. Not only does this make you more immediate income but it also sets you up to do similar deals with the same clients in the future.

How to Maximize Your Cash Flow from Every Deal.

You should look carefully at the easiest client in the world to get - a satisfied and convinced client. This helps you to maximize leverage on every deal you do in order to gain greater and greater income without having to re-sell your concept every time.

For example, if you do a deal with a chiropractor to sell shark cartilage or other pain reliever, the person selling this product also has customers... You can almost immediately find a deal for the endorsee, which will make them a surge in cash flow - exactly as you've done for the endorser. There are no limits to how far you can take this concept, in fact, it is the single greatest way to leverage I know.

Here are a few examples of the kind of deals
I would put together right away:

I would marry car dealers with detail shops who maintain the appearance of cars - and structure the deals where the detail company offers long term (1 year) contracts at a savings of X percentage.

I would introduce dental patients to companies who sell teeth whitener. Get them on a monthly purchase deal where their credit card is automatically billed and the whitener is automatically shipped as long as the customer wants the product.

I would marry Internet service providers with schools who teach how to get more out of the Internet. Also, I would do deals where I bring in software vendors (for an extra profit center) to be introduced to the students each week, month, or whatever period with a contract for a percentage of the profits when students upgrade the software in the long term. This is a trilateral Joint Venture. As you see, the profit potentials are endless!

Another example would be a Joint Venture between a radio station and a restaurant. I would arrange deals where radio advertising sales representatives receive restaurant meal credits for a percentage of the trade value. This gives them an extra edge in their sales efforts by allowing them to take their clients to dinner. Then, in return, have the radio station give the restaurant the benefit of "cost" advertising. (Radio spots selling for $300 may have a true cost to the radio station of only $100. Which gives the restaurant a three to one savings on the radio advertising they are already buying at full price.) You arrange the deal under intellectual property law to receive 20-30% of the "true value" you are rendering to the restaurant.

I would arrange deals where software vendors would share lists and make offers to one another's customer base. Of course I would set it up to take my piece of the pie... This is a very lucrative area, especially if you arrange the deal where you continue to get a percentage of upgrades, etc.

Summary

I hope you are beginning to see that this is an untapped area of marketing where you as a consultant can cash in on other's lack of observation or understanding while doing a noble win/win service to the business community. 

Michael E. Enlow is a business coach and marketing consultant, considered one of the masters of joint venture marketing.  Mike is the founder of Enlow Enterprises, Inc. and has the web site www.enlow.com Mike may be reached at mike@enlow.com or call 1-415-913-7545.  He also has a discussion forum at his site.  His "Technology Marketing News" newsletter is available by paid subscription.

Note by Editor, Rick Olson: This report and the intellectual property herein is and remains the property of Enlow Enterprises, Inc., and MAY NOT be distributed to third parties, as it is as well copyrighted under the laws of the United States and many foreign country treatises.  Rick Olson thanks Mike for allowing us to reprint it for your benefit.