Psychology theories have proven that endorsements are truly an effective tool in joint venture marketing. It utilizes these strategies through agreements between businesses to endorse each other’s products to their clients. This strategy results boosts sales when executed correctly.
Using endorsements in your joint venture deals, are similar to using setups. These are entities — organizations, publications, etc. — have a very strong affinity. Use it as you are doing SEO or social media marketing.
In other words, their buyers, readers, subscribers, members trust, respect and pay attention to anything they communicate, recommend or approve. This is especially true as people shift from buying offline to online. In a crowded digital marketplace like Alibaba, Etsy or Lazada, testimonials can be everything.
This can pay off in 3 ways:
1. You can reduce your marketing costs by probably two thirds or up to almost 100%. This is evident when we conduct Google Pay-per-click (PPC) for our clients when we put testimonials on the landing page.
2. Everything you do has the possibility to do well in multiples upward, and sometimes even beyond, 10 times what they would have been.
3. The buying cycle can be shortened. If someone you trust tells you that something can transform your business, or even help you attain crazy amounts of profits, then you would probably take action.
Without that person’s endorsement, it may take hundreds of thousands of dollars in ads and months or years to get your reception — and even then, your prospects still may never buy. Now are you convinced of the power of a well-executed endorsement?
Do You Need A Celebrity Endorsement?
You do not always have to use a celebrity – they can be expensive, so it really depends on your type of business! In Singapore, the digital lock industry seem to favour such marketing tactic.
Mainly, you need to search for entities (people, businesses) that have garnered respect and built a strong, trusting relationship with your target market.
However, sometimes the company that you target as your endorser may not even realise that they have a relationship with your prospects. Many times, they inadvertently create a relationship because of the method they do business, the ethics they deal with or even the sector of business they deal with, they benefit from that trust and respect.
How To Harness The Power Of Capital Investment
With endorsements, you’re able to tap on an existing distribution channel, be it an e-mail list, lead generation list, an influencer list, a subscriber list, through their sales force, through their packages, they ship out, through their trade shows…
You can also leverage on their strong, extremely hard-earned goodwill and trust that is likely the result of high amounts of capital investment.
There are many kinds of capital investment. But besides the typically associated financial or monetary investment, there is also the effort and time invested, the human capital or the intellectual capital.
When carrying out your research, look for companies, entities, and organizations that have invested huge amounts of capital that you can take advantage of.
Because you can leverage on that capital.
The Beauty of Endorsements
Sometimes all it takes to become a joint venture partner is send an e-mail or fund a test-run on a letter. But the payoffs can be far beyond your expectations! You are leveraging for fortune for next to nothing or in some cases, nothing at all. But your payout on the 5 or 6 types of capital effort can be substantial.
How to Gain Instant Credibility
Build instant brand credibility for yourself, your products or services and your company, and spread the word quickly
Your buyers are only a fraction of those exposed to your credibility, so that elevates your status to more people than expected.
But you may be thinking “they don’t always immediately purchase from me?” No, but keep in mind that it is only a matter of time before you do business with everyone you want to.
Next time, when they come across one of your promotions, the immediate reaction would not to be reject it. Instead, they would recall how their endorser actually validated you.
This is commonly practiced through social media marketing, as evident from the many cross-endorsements on Youtube to gain more followers as well as the training industries, where gurus cross-sell each other.
The endorsement immediately primes them to be receptive to your offers. The exposure, money, clients and orders would start rolling in! And here’s the kicker, these prospects aren’t just for single static purchases. The likelihood is that if your offering is of value, they would continue to be a lifelong client and purchase 5 to 10 times a year down the road.
The Psychology behind Endorsements
In summary, depending on what kind of business you have, most companies have already spent years and millions of dollars, to acquire and build a strong, credible relationship with your target prospects. Hence, you just need to identify these organizations that have access to the same markets you desire to penetrate. Then persuade them to make a deal with you to endorse you or your products, with trust and value for their buyers.
After acquiring endorsement deals, Jay experienced profit that was five times his normal profit — meaning that endorsements are truly an effective and lucrative marketing tool. Now that you know how powerful endorsements are, it is time to start making those deals!