The best part of Joint Ventures, as well as the easiest and most lucrative, is “Piggybacking”.

When I was 11 years old, my favorite game at school was similar to piggybacking. Small guys like me would ride on the backs of big, strong guys and we would try to pull our opponents over. They key to winning was strong arms and a strong “Horse”. I had strong arms and I always chose a strong horse, so I usually won.

A Strong Recommendation

In business, the book, “Horse Sense” by Al Ries and Jack Trout applies the same concept. This book was personally recommended to me by a multimillionaire client of mine, many years ago. I read the book three times.

A Lucrative Piggybacking Example

I recently talked with a man who has 1,200 people in his database. I suggested he offer them Membership in my DollarMakers Joint Venture Forum at a great discount. By sending out two e-mails and one voice broadcast and adding value, for which I would pay, and by mentioning the opportunity in his e-zine, we estimated that he would have at least 120 join (10%). That would earn him significant money, at no cost or risk to him. That’s piggybacking – and it’s that simple.

The same can be done with shared advertising, mailings, e-mails, e-zines, direct mail, seminars and business opportunities. Riding on the back of existing distribution, reputation, reach, access and exposure is very effective.

Consider the Power of Partnering

• Don’t buy a 747 to fly to LA – simply rent a seat.
• Don’t own the overhead or create a competency; borrow it.

Consider the power of partnering: everyone wins by sharing underutilized resources and Hidden Assets. And here’s the Good News – you don’t need to own the resource, be it a database, distribution route or relationship – you simply make the connection – it’s called “Triangulation”. No risk or cost, no downside, lots of fun and lots of money. You don’t need a business to set this up. Link me up with someone else and take a piece of the action. Link Bob up with Sally and get paid on all ensuing business over the next two years, why not?

The key to successful piggybacking…

is a strong horse and a strong rider – both parties should be ethical, generous, smart, professional and proactive. That’s the hard part. I know people whose databases I wouldn’t touch with a 20 foot pole. Be selective; be VERY selective.

Talk with Members of the DollarMakers Joint Venture Forum and if you want to make a lot of money easily, remember that all it takes is a bit of thought. It’s not hard work and there’s no risk if you’re dealing with the right people.

The Bottom Line

Bundle a product or service with one that is already selling well or add a product or service to an existing database or distribution route – that’s piggybacking, and it can create increasing, multiple streams of passive income for you.

One of the most important aspects of the Joint Venture Mindset is that we don’t need to, and in fact shouldn’t, “Sell” a Joint Venture proposal.

Avoid this Poor Play

Last night I attended a “Networking” meeting where the Membership Services Manager walked up and asked me outright why I didn’t join their Chamber of Commerce. She showed no interest in me, my business, my problems or my interests. She was simply out to hard sell everybody she could.

When I indicated that I needed to see how joining that Chamber would benefit my particular business, she proceeded to reel off the “benefits” of joining. She is not someone to approach for a Joint Venture. She is egotistical, arrogant and stupid.

Make the Smart Move

If this “Manager” was intelligent, she would have listened carefully to me and asked herself a few simple questions:

• How many people could Robin introduce to this Chamber?
• How many people does he influence and who are those people?
• What is his ‘Hot Button’? What does he really, really want?
• How can this Chamber bring him massive, unprecedented value?
• How can I best present this option to him, in a win/win scenario?

If she had listened carefully, she would have learnt that I have many DollarMakers Joint Venture Forum Members and that many of them might consider joining her Chamber, and that many of her 1,400 Members could join the DollarMakers Joint Venture Forum and attend our Bootcamps, which could make her a substantial amount of money (a lot more than she earns at the Chamber). She would have found out that I can put her in front of a lot of prospective Chamber members via my talks, e-zines and seminars.

When to Walk Away

When someone doesn’t understand the value you offer them, walk away. If you have to sell it, the value is not perceived. Either you have to:

1. Describe it better,
2. Listen better or
3. Realize there is no match and walk away.

But you shouldn’t try to persuade someone to Joint Venture with you.

They should eagerly accept your no cost, no risk offer – that will mean they’re committed and serious. If both Joint Venture parties are excited, enthusiastic and passionate about the Joint Venture, it will probably work very well.

The Joint Venture Mindset

You have to kiss a few frogs to find a prince, you know. But you can’t make a silk purse from a sow’s ear. Some people will never understand the Joint Venture mindset – get used to it, don’t take it personally, and remember what smart salespeople say:

“Some will, some won’t, so what? NEXT!”

How much should you make from a Joint Venture?

• 10%? 20%? 50%?
• Should it be of the net or gross profit or off the top?
• How do you decide?

This is an important consideration, especially for people who are used to paying peanuts and those who are used to accepting a few crumbs. Entrepreneurs who understand business and profit are more likely to pay and demand reasonable commissions.

Look at the Profit Margin & Be Generous

For example, when people attend a DollarMakers Joint Venture Broker Bootcamp, I pay the referring Members up to 50% in commissions! My cost of putting an extra chair into a Bootcamp and a few extra cups of coffee and donuts, plus a workbook, is negligible. I can afford to be generous. My DollarMakers Joint Venture Forum Members earn thousands in commissions every month. But if I was selling computer hardware, with a profit of around 6%, I could not afford to pay such a generous commission. Large profit margins demand high commissions; real business people understand that. And there are other ways to reciprocate, other than financially – but that’s a subject for another blog or the Bootcamp.

Avoid Ridiculous Offers Like This

A realtor approached me with the typical offer: “Send me a buyer or a seller and I will pay you $75 for a completed sale.” So you get $7,000 and you expect me to accept $75? Are you kidding me? I’ll take 50% of the realtor’s commission or no deal. Am I being greedy? No – I pay 50% and so can they. If you don’t ask, you won’t get. Desperate realtors will not agree to this, but the smart realtor who has built in multiple Joint Venture back end sales into every transaction will jump at the opportunity.

50% of something is better than 100% of nothing. It’s business they would never have had. When you show them how much business that one deal can generate over the years and the Marginal Net Worth of a customer, they might see the light.

A Smart Business Owner Knows

Most entrepreneurs don’t understand their acquisition cost, attrition rate, profit margins, back end value or Joint Ventures. That’s why they feel they have to grab every up front cent they can. When they understand the big picture and they want to create increasing, multiple streams of passive income, they will become generous in their referral fees and commissions.

My Standard

I personally don’t accept anything less than 20%, but it all depends on the big picture, margins, reciprocal consideration and value. Remember the big picture and demand to be paid a fair amount or walk away. There are many opportunities out there but very few people who understand Joint Ventures, so you can call the shots.

When you have a service or a product that is bought many times over, it makes sense to pay to get a new customer. For example:

• I showed a hair salon owner client of mine how to invite high-end potential clients for a hair free cut and blow wave. His cost was negligible; however 82% of them were so impressed with the quality of his work that they became regular customers.
• A Tree Surgeon may offer a free service in order to obtain long-term customers.
• An accountant or lawyer may offer a free initial consultation.

Try These Excellent Money Making JVs

Combine the above with a Joint Venture and you can create the opportunity to access a large base of potential customers, especially if you have a consumable product.

• If your research and experience shows that most people who try your product go on to consume it on a regular basis over a period of time, why not ask JV partners to advertise your product and keep 100% of the first sale income for their trouble?
• Or they might want to give it away to their clients as a gesture of thanks for loyal patronage.

The clients who like it can be directed to make all future purchases from you.

A Little Upfront Profits You Greatly in the Long Run

Smart coffee shop owners can target business people who work in the area with an offer of three free cups of coffee. The prospects will get used to coming in to the shop and probably buy muffins or sandwiches anyway, and if the food and service is really good they could very well become regulars. Three cups of coffee costs about 60 cents. What is your profit on a sandwich?

The Law of Reciprocity works.

When most people get something for nothing, accompanied by excellent packaging, friendly service and a good product, they feel obliged to reciprocate. What is the marginal net worth or lifetime value of a customer to you? Being generous and allowing them to taste and experience your products and services at no cost is a smart marketing strategy. People whom you would never have met will have a reason to try your products and services.

I was approached by a man who had unsuccessfully been trying to sell his franchises for four years. We looked at what the market really, really wanted and then doubled the price of the franchise and added a free trip for two to Disneyworld. I sold all the franchises in four months. When we added a free television set for anyone who bought a house from us, my wife, Rika, and I sold more houses.

People Want to Play

Why do they have conventions in Las Vegas instead of some unknown, small town? Because people want to play. They want an excuse to buy toys and have fun. Instead of thinking about what YOU want all the time, think about what your prospects want. Instead of hidden costs, try obvious perks. Trips, toys and trinkets are proven to work, especially when there’s a choice. People don’t want points or money or discounts as much as they want toys.

Justify Fun & They’ll Buy It

A man wants to buy a PDA. His wife says he should rather pay down some debt or buy a new refrigerator. He is then offered the opportunity to attend one of two seminars – one is for $800 and the other one costs $1500 but includes a “free” PDA. Guess which seminar he will attend. Some people need to justify toys and fun and when you give them the opportunity to do so, they’ll grab it.

Try This

Try adding a digital camera to your product or service and increase the cost of the product or service by the price of the camera, and see what happens. Give your customers an excuse to have fun.

• “Belinda, I know sales are down and I need to clean the garage out, but you know I have to attend that sales convention in Vegas and the river rafting “team building” will really help our sales.”
• “Bob, I know the kids are sick and you’re busy, but you’re just going to have to play Mom for a week while I take my sales team down to Hawaii for our convention. I need to train them up to increase sales and the spa treatments will help us bond.”

“Free” Gift

Free gifts also work really well. My friend buys a Mercedes from the same dealership every time because they always send his wife a huge bunch of yellow roses. Get creative and think about giving people a great excuse to buy from you.

As a business owner, you’re probably inundated with advertising offers and salespeople who want your money to advertise on billboards , radio and television, in newspapers and magazines. These salespeople promise massive exposure and hint at lucrative results and return on your investment. But you’re concerned about the risk… and as well you should be. A lot of advertising simply won’t work for you.

The good news is that there is an alternative.

The advertisers have space available and it costs them very little. That’s why they’re trying to sell it. I was approached by a well-known national business magazine to advertise my marketing seminars.

Here’s what I did. (I always talk with the Decision Maker, not the salesperson, who only wants a commission):

Robin: “Tell me honestly: for me to advertise in your magazine, I will need to sign up at least 50 people per seminar, per city. Then I will make a profit and be able to pay for your adverts. I know you can’t guarantee anything, but, if you were me, would you go ahead with this advertising?”

Magazine: “Oh, yes, no question about it, Robin – I would write out a check right now.”

Robin: “What I’d like to do is to pay you DOUBLE for this advertisement. You’re being
honest with me, right?”

Magazine: “Of course, but why pay me double what I’m asking?”

Robin: “You place the adverts, people respond to you (so you have full control) and you send me the replies. When they pay and sign up for the seminars, I will pay you $X per sign-up. That way, if I reach the target which you have assured me is a very reasonable expectation, you get paid double. When can we start?”

You will have worked out the numbers and calculated how much you could comfortably afford to pay them per sale.

This is called Contingency Advertising.

They assured you that they would take the advertising investment risk if they were you, so it is logical that they should take the risk themselves. After all, they do mean what they say, don’t they?

Pay for results, not promises. Remove the risk – let the advertiser take the risk.

Naturally, not every advertiser will do this, but it’s a numbers game. Ask enough advertisers and you’ll get a few takers. I have done this numerous times. When the ads didn’t work, I walked away with free exposure. When they did work, we all did well.

“Successful people ask better questions, and as a result, they get better answers.”
- Anthony Robbins

There are only two types of questions: Those that get negative or negligible results, and those that get great results. What questions are you asking yourself and your associates, employees and customers that can result in a better bottom line? What questions will reduce customer attrition, improve loyalty and profits and motivate the people you work with?

Design the Right Questions

• The answers to the questions we ask should result in answers that inspire, motivate and initiate innovation and positive action.
• They should encourage, cheer, challenge, energize and drive.
• The more specific the question, the more specific the answers… And the more specific the answers, the better. Specific is terrific.

By designing the right questions to ask those involved in our business, we direct the business to greater success and focus everyone on the goals and objectives for which we have taken responsibility. When you ask the right question, you create an answer that begets a success strategy.

Try Asking These for a Self Check:

1. “Which three things can we do to increase the amount of people coming into the store by 5% without any cost or risk to us?”
2. “How can I pay for results instead of promises when it comes to advertising?”
3. “Who do we need to work with in a Joint Venture to double the amount of prospects we are currently exposed to?”
4. “How can we create three new streams of increasing, passive income?”
5. “How can we benefit from someone else’s advertising and marketing activities?”
6. “What can we do to double the value we offer our clients, without increasing our cost of sales?”
7. “How can we get customers to increase the amount of times they visit our business by 30%?”
8. “How can we reactivate 40% of our inactive customers?”
9. “How can we create back end sales without increasing our overhead or the time it takes to sell the back end?”

Sales Tip

Learn to ask questions that result in a buy. “O.K., Bill, I’m going to charge you card now for the basic Widget. Now shall I add the Blue Squink for $100 as well as the Rutten for another $800, or shall I just add the Blue Squink?” The answer should be, “Sure, add both”, or, at worst, he says, “Oh, just the Blue Squink for now.” Either way, you have upsold him.

Management Tip

Management questions can help or hurt. Ask, “What could I have done to help you achieve even more sales?” “You’re really at the rock face, Candy. What do you suggest we do to improve customer service even more?” “Bobby, I want to pay you a higher commission. What can we do to ensure a higher transaction amount per sale?”

Do you want to know whether or not you will achieve your goals? Just look at your life, and you’ll know! What you consistently do in your life is a very clear prediction of where you will be in two years’ time. Your level of self discipline is a crystal ball – there is a definite link between discipline, self esteem and accomplishment. Look how many hours you spend dedicated to the accomplishment of your goals, and your future will reveal itself to you.

“We shall pay any price, bear any burden, meet any hardship, support any friend, oppose any foe, in order to assure the survival and the success of liberty.”

- John F. Kennedy

Successful people are “Outcome Driven”.

• They know exactly what they want.
• They focus on the reward, not the process.
• They highly respect, protect and prize their time.
• They do things in the order of their importance.
• Their time is prioritized.

Frank Lloyd Wright said, “I know the price of success: dedication, hard work, and an unremitting devotion to the things you want to see happen.”

Mike Litman says, “You don’t have to get it right; you just have to get it going. Take action NOW. In life, you’re either consistent or you’re non-existent.”

Which are You?

• Do you prepare your day with a Do List of the six things you absolutely have to accomplish the next day? Is your vision so clear, so compelling, so exciting, that you can’t go back to sleep again after thinking of it?
• Or do you drift along, side tracked and buffeted by every new quick buck scheme and MLM dream, grabbing here and there and never sticking to anything?

• Are you an unstoppable machine, up early and rearing to go? How worn is the snooze button on your alarm clock? Do you even NEED an alarm clock?

And please check your philosophy. Your entire life and business is a reflection of your philosophy.

“The heights by great men reached and kept

Were not attained by sudden flight,

But they, while their companions slept,

Were toiling upward in the night.”

- Henry Wadsworth Longfellow

Action Steps

How many hours a day do you dedicate to your magnificent obsession? If you see a need for change, CHANGE NOW. Take charge. It’s not too late! Make it happen. Align yourself with Eagles, cut the ducks out of your life and kick any money making scam that isn’t working to the curb. Get a new telephone number and only give it to winners. You can do it.