Million Dollar Joint Ventures Session 2 – Part 1 Overview of the 6 types of Toll Gate Joint Ventures
• There are 6 types of Toll Gate Joint Ventures (TGJVs) I use in my business • In this session, I’m going to give you a quick overview of each of the 6 types before we move on to prospecting
• Later in the program, I’ll walk you through all 6 TGJV types in step-by-step detail, showing you exactly how and when to use each type • I’ll also show you how to simplify the entire process so you aren’t confused or hindered by unnecessary complexities
• The bottom line is that it’s really very easy and you’ll understand why once we get to the section that lays out the details of all 6 types of TGJVs • For now, the main purpose of giving you a quick overview is to lay a simple foundation, so when we talk about prospecting, you understand exactly what you’re offering your prospects – which makes life much easier when identifying the precise prospects to market to
• So let’s start the tour with a list of the 6 types of TGJVs, then I’ll give you a bit more detail on all 6 • Type 1: Basic Toll Gate Joint Ventures • Type 2: Psychographic Toll Gate Joint Ventures
• Type 3: Middle-Man Toll Gate Joint Ventures • Type 4: Finder’s Fee Toll Gate Joint Ventures • Type 5: Trade Association Toll Gate Joint Ventures • Type 6: A category of its own – Constellation Toll Gate Joint Ventures
• Overview of basic Toll Gate Joint Ventures • The idea behind Joint Ventures is very simple • If you have a product or service, you find another company with a strong list and have them offer your product or service to their list
• You each share in the profits based on whatever percentage you agree to • If you have a strong list, you look for companies with compatible products or services and then offer those products and services to your list • Again, you each share in the profits based on whatever percentage you agree to
• Of the two sides – the product side and the list side – you’re always in a better position if you own a strong list • Owning the list is far more than just owning a list • When managed properly (which few businesses are even aware of) it’s far more expansive, and is actually the ownership of a lucrative distribution network
• With that understanding of JVs, we simply apply a little “tweak” to come up with Toll Gate Joint Ventures • This advanced form of Joint Venture is far more fascinating – and far more profitable – because you don’t need your own product or customer list to make tens or hundreds of thousands of dollars on each deal
• In fact, you don’t need any resources at all and the only real investment is your time and a couple hundred dollars • Toll Gate Joint Ventures means that you are brokering JV deals between a company with a great product and another company with a great list • You locate both companies, set up a deal between them, and you’re in the middle Toll Gate position where the deal is set up, connected, and implemented by you
• For doing this, you receive a retainer and a percentage of all profits produced • So this is the basic form of Toll Gate Joint Venture • And all the other forms are extensions of this basic concept
• Overview of Psychographic Toll Gate Joint Ventures • Psychographic TGJVs use the behavioral and buying patterns of specific groups to find the right list and right product or service to pair with each other • This also lends itself to multiple pairings, since people in each specific behavioral category buy a variety of things consistent with their behavior
• It’s designed to help you identify behavioral and buying characteristics of groups of people that you might not normally think of • While this may sound complex and scientific, it isn’t really
• Let’s use BMW owners as an example • Since they own a luxury vehicle, they are probably interested in other luxury items • Lifestyle choices of these types of people may include high-ticket jewelry, gourmet restaurants and food clubs, designer clothing, cruises and other forms of travel, tickets to symphonies and operas… and much more
• Further psychographic research, which I’ll show you how to do later, might uncover some other areas that you wouldn’t expect • As a hypothetic example, through your research you might discover that a high percentage of BMW owners enjoy BMWs for their engineering characteristics and purchase high quality tools for their home workshops • By leveraging the use of behavioral characteristics and buying patterns, you can significantly expand the types and number of partners you find for any specific group
• Overview of Middle-Man Toll Gate Joint Ventures • Middle-Man Toll Gates are a bit different that other forms • With this method, you aren’t really looking for one side with a product and another side with a list
• Instead, you’re looking for a business that needs a service and a service provider who can deliver the service • Neither the business that needs the service or the provider who delivers it knows about each other • Often, business owners and managers are too busy to find good service providers , so they’re more than happy to use someone who brokers the service
• And service providers are notoriously poor at marketing their services • So putting them together offers you a great way to broker TGJVs and collect a nice share of the profits • You may remember the example I gave in the promotional piece for this program of one of my students who made $750 an hour by doing this
• When he heard that a friend was about to pay $6,000 to have a couple of web pages developed for his business, my student offered to do the job for $2,000 instead • He then found a web designer willing to do the job for $500 and pocketed $1,500 for his efforts • And his total time invested was two hours, so he made $750 per hour
• Now, I would have charged $4,000 for the same job • After all, just about anyone would jump on a 33% savings
• That way, he would have pocketed $3,500 instead of $1,500 – for an hourly rate of $1,750 • Later in this program, I’ll show you how you can use the basic principle of Middle-Man Toll Gates to quickly build a six to seven-figure business with this single technique alone
• Overview of Finder’s Fee Toll Gate Joint Ventures • In every business, there are leads that never convert to paying customers • These leads then go unconverted and are discarded
• This represents a substantial opportunity once you understand TGJVs • An opportunity that can pay you substantial fees • And it’s very easy to do
• All you do is take these leads that don’t convert and instead of discarding them, you can create Toll Gate Joint Ventures to rent, sell or license them to other businesses • And I’ll cover how to easily do this in step-by- step fashion later in the program
• Overview of Trade Association Toll Gate Joint Ventures • Trade associations are a particularly rich source of TGJVs • They’re always looking for ways to generate revenue outside of their membership fees
• And they’re notoriously inept at developing any revenue model other than membership fees • So it’s rare that they spot outside opportunities like Joint Ventures • That’s very fortunate for you and me!
• Equally fortunate is that there’s very little difference between a Trade Association TGJV and any other TGJV • I’ll cover the few nuances in complete detail later in this program
• Overview of Constellation Toll Gate Joint Ventures • A category of their own • They are the “gold standard” of TGJVs – because of two factors
• Factor 1: How much money you can make with them • Factor 2: They take only a small amount of additional effort to do compared to smaller deals
• Constellation Toll Gates are joint ventures that you broker with multiple partners on each side • The term “constellation” comes from there being many “stars” in the universe • Plus, they can be done from both sides
• You can broker Constellation deals where many products are sold to a given list • And you can broker Constellation deals where many lists are all sold the same product • There are actually 3 distinct versions of Constellation Toll Gates • I’ll cover each in step-by-step detail later in this program
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