What ten things should you look for to determine whether or not you should consider accepting a Joint Venture proposal? What criteria should you consider?

Here are some guidelines that I have used successfully over 22 years as a Joint Venture Broker.

1.    The Person:

Your potential JV partner needs to be thoroughly checked out and investigated before you JV with him or her. Look for clues and do your due diligence. Look at:

• whom they associate with,
• their level of professionalism and punctuality,
• their dress and grooming,
• preparation,
• philosophy,
• understanding of JV’s,
• and attitude.

Don’t be afraid to decline any JV at any stage – the more selective you are, the more money you will make.

Be sure who the real decision maker is – often it’s a spouse or lover or business partner behind the scenes, making the bullets for the front man to fire. ALWAYS, Only deal with the top guy, and never with the minions, managers, and puppets.

Don’t deal with new entrepreneurs who still have an employee mindset if you can avoid it.

2.    The Product of Service:

Avoid products that are really trends, fads, gimmicks, or new on the market, since these are usually vastly overpriced and will soon appear in Wal-Mart at a fraction of the price, which will embarrass you and diminish your reputation and status as a JV Broker.

They usually have a short lifespan, and people make money on the front end and pay for years on the back end for the damage done.

3.    The Past (history) of the Person and the Product or Service:

Past behavior predicts future behavior.

• How long has this person been doing JV’s?
• How long has the company and product been around?

Google, Google, Google, talk with their competition, and use a private detective if necessary.

Watch out for people who arrive new on the scene from far away – they’re often running away from something, or too many people know them in the town they left.

4.    The Pressure:

• Are you being pressured to implement it?
• Is your JV partner under financial pressure?

These are signs of desperation, and red flags to any JV Broker.

NEVER deal with a JV partner who has financial problems or is cheap (tight-fisted). You need confident, secure, relaxed, professional, mature JV Partners.

5.    The Potential of the JV Financially:

• How much money can you make?
• Is it really worth your time and effort?

Always include the back end and new relationships when evaluating the financial potential of a JV.

Look at the big picture, but also the time required and the cash flow component.

6.    The Potential of the JV Timewise:

• How long will it likely last?
• Is it a flash in the pan?
• Will it take ages to take off and then die a fast death?
• What is the track record, if any?

Avoid new inventions and start-ups like the plague.

7.    The Positioning or Fit within the Whole:

That means how it fits with your:

• other JV’s,
• database access,
• interest level,
• gut feel,
• your existing JV Partners,
• and experience.

You should feel comfortable, confident, excited, and secure with your new JV partners and the products / services involved. There should be a natural fit, especially on the back end.

8.   The Complexity:

• How Problematic is it?
• How complex, involved, convoluted, and abstruse is it?
• Or is it simple, straightforward, easy to implement and track?

Keep it very simple – often, the more complex, the more problems are being hidden. Complexity is often the sign of hidden dangers and agendas.

9.    The Pace:

• How quickly can you implement and integrate it with your other JV’s?
• How soon will it make you money?

Be realistic about your predictions.

10.    The Progress:

Once you have implemented the JV:

• …is it making progress?
• …are your JV partners doing what they said they would do?
• …is it working as well as you expected it to, or does it need to be either fixed or ditched?

Don’t be afraid to walk away at any time – you have millions of JV opportunities out there.