Joint Ventures and Affiliations

There seems to be much confusion over the differences between joint ventures and affiliations because they seem to serve the exact same purpose. In all actuality, they do! However, when you joint venture with someone, this is more based on your personal relationship with that person(s) versus becoming an affiliate where you really have no relationship with the organization you are representing.

So, is one better than the other? Not necessarily, but it can be more beneficial in certain situations to joint venture. One obvious reason would be if they don’t have an affiliate program set-up, you could work out a deal with them to sell their product or service for a set commission. In this case, you can usually ask for a higher commission because a lot of times you are the one that’s responsible for doing all of the promoting. I usually accept nothing under 50%.

Another reason is that sometimes companies prefer to deal with a small group of joint-venture partners. They believe that most affiliate programs produce little in the way of results with only a few affiliates generating a significant amount of sales. So, rather than wasting their precious time developing an affiliate program they focus their energies on building solid business relationships with partners they specifically choose.

By selecting their own partners it gives them two big advantages. First, it allows them to spend extra time with quality people whom they know will go out of their way to make sales. Secondly, by establishing these relationships they have more control over who is representing their company and products. They want people who will give good customer service and sell their products ethically. Affiliation does not give them these luxuries.

Warmest regards,

Matt Bacak

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