Overview:

The episode discusses the benefits of joint ventures for businesses. By partnering with other companies, businesses can gain access to new customers, expand their offerings, and reduce costs. One example highlighted how a gym was able to acquire over 20,000 new members by partnering with a printing company on a promotion. This led to over $800,000 in additional profits for the gym with no extra marketing costs. The episode provides several other case studies of successful joint ventures and encourages listeners to explore partnership opportunities within their own networks and industries.

Automatically-Generated Transcription:

We've had some requests to record.

Yep.

No, all, all good.

So this is a first online, yeah, first online event.

I'll elite marketers online event.

And I just want, firstly thank John.

'cause I was talking to, to John a few weeks ago and John's like, come on man, you gotta run one.

Gotta run one online.

I thought we don't, I don't, I'm not sure when we'll be able to run one For real.

Yeah, in real time.

Yeah.

So we've decided to, to, to roll out with the, with the online event and I think it'll be, yeah, it, I'm quite excited about it and I think it's really important to do it in these times because obviously times have changed a lot over the last few months with, you know, the current situation and knowing what's working now in real time I think is really critical.

So I'd love to get your feedback at the end of the event just on what you think, what can be done to improve it, et cetera, et cetera.

Because yeah, if this one yeah, people get value out of it.

We'll look at running future, future events.

I think most of us know, yeah, most of us know each other here so far.

There's a few people who haven't been, been before, so I'll just do a, a very quick intro to to to those people.

So we've got Jane Slack.

Smith who?

Jane.

Yeah.

So you can see Jane there.

Jane is like a property guru, but she's also amazing at marketing as well.

She's got a very clever marketing mind, very creative, um, is part of a lot of the, the masterminds in the US and that sort of thing.

Yeah.

So very happy to have to have Jane on board.

Then we've got Steven de de f Fabrizio and not to be confused with Steven DeRio.

So Steven is since been a, an amazing council to me over the years.

He was an action coach back 20 years ago.

Not only a smart marketing mind, but also a very smart business mind.

He owns a, he owns car yards and in the hospitality and is an angel investor.

So yeah, very savvy guy.

You all learn a lot from then we've got Mark Anthony, that was me we were talking about.

And then, then we've got, uh, Mark Anthony and Mark runs a, almost like a pay per lead, um, service.

Been in internet marketing like forever.

So yeah, very, you know, outside the box thinker.

Very creative and also just a really solid top guy.

I'm just thinking.

And we've got Matt and Liz Rad.

So Matt and Liz have, they're like the experts when it comes to buying, building, buying and selling businesses and also very big in the online space.

So yeah, so they're, they're very great to have them as part of the team.

And then, and Johan and Johan is got an amazing business.

Mind runs several, several companies including, you might have heard of business authorities, so he operates that as well as a digital agency and several other companies.

So very clever marketing, you know, marketing mind.

And yeah, I think that probably as much as I need to say at the moment, I'd like to hand over the, oh, the only thing I will say is within the, in the breaks, we'll probably like, we're gonna have a break halfway through where you can either go and have a coffee or do whatever you want to do.

But we'll probably just also put people into breakout rooms.

So if you do want to just hang out by the computer, you can chat and network.

I'm trying to make this as much like a, you know, a real event as possible.

So it's not just, not just content, but it's also networking.

'cause I'm aware that's where a large percentage of the, of the value come value comes from.

With that being said, I think we'll hand over the, the reigns to Johan who is going to be talking to us about the, about joint ventures, which is something, you know, he's Yeah, he's a real specialist at.

But you.

Awesome.

Thank you all for having me.

Um, I think I've just recently joined the group in the last couple of weeks and I feel I've just got into the secret fraternity of all these amazing people.

So thank you for having me.

Scott, can I share my screen?

Is that okay?

I can, I've got disabled by Host.

Okay, let me just work out how to do that.

Johan, I'll make you a co-host and then you should be able to, So the easy way to do it is down where it says share screen, click on that and it says, enable other people to, to do it.

So if you click on that, it will give you an option to enable other people, not just Johan, but anybody else that needs to.

Okay.

Yep.

Let me know when you can see my screen.

Yep.

No, we can see it.

Awesome.

Awesome.

All right, let's rock.

Cool.

So Scott asked me to talk to you guys about joint ventures.

I love joint ventures.

I've been doing them since I first started my first business.

And so I'd like you like to walk you guys through how I have built all my businesses and how you can pretty much implement this.

It doesn't matter what, what the economy's like, because joint ventures are all about win, helping other people achieve their goals.

Most of you would probably realize that there was one deal that changed your life, you know, that you can always pinpoint back to that one deal that made this massive difference.

You'd think about, oh my God, I can't believe I shook that person's hand and this is what it led to.

So this, I tell everybody, you're only one deal away from achieving whatever you want to achieve.

And every morning when I wake up, the first thing I think about is who can I serve today?

All of my presentations, they cover four things.

How to get more leads into your business, how to create more time so that you can have more profits because that's why we all got into business.

And then create more impact at the end of the day.

What's the point of having money if you're not gonna impact the world and leave a legacy?

That's a bit of pre-frame to why I do what I do.

Now, most of us have been in this industry for probably, I know I've been in this industry for since the year 2000.

I'm starting to feel very old and I just put together a little collage.

These are some of the influences that are in my brain.

We're all influenced by different people.

There's nothing that's actually ever created.

It's all been, we've taken from all these different people and created our own formulas and frameworks.

These are some of my mentors in this presentation.

There's a lot of my strategies that have come from Jay Abraham, from Jim Rowan, and from Mr.

Dan Kennedy.

And most of you guys would know these three.

And disclaimer from my lawyers, Hey, results aren't typical.

My programming, my brain is completely different to yours based on all these people and their information that's in my head and the way we react to that.

But you all know that.

So this morning it's, what was it, six in the morning when my wife walked into my office and she saw this picture, oh my gosh, what the f**k are you looking at?

Excuse me, sorry for swearing.

I was like, no, it's for a present, a presentation today.

So let's talk about normal business.

Actually I think it's risky business and all of us have a normal business that we've started off with.

We actually started a new business last week, Scott, and just the domain name cost us a nice little bundle when we're building a normal business.

We have the domain website, branding funnels, automation, sales, all of these different things that we have to put into a business.

And that's probably even before we start off our first get our first sales.

We all know there's three ways to grow a business.

Mr. J Abraham, we've studied him.

And so every business that we look at, there's three things that we go into.

How do we increase the number of clients?

How do we increase the average transaction value and how do we increase the frequency of purchase?

This allows us to, when we're talking about joint ventures, if you focus on these three things, you can create a successful joint venture.

So businesses take time, effort, and money.

We all know this.

How long does it take to get to a million dollar a year business?

It took me about five years to get to that.

Then 5 million, 10 million, 20 million, a hundred million.

We've got one business that we took from zero to 20,000,004 years and that was quite quite an effort that business we've set up with joint ventures and that will get to a hundred million, but that's gonna take us the next eight years to do.

But it's very systemized at the same time.

If you think about how many businesses actually get to 1 million or 5 million or 10 million or 20 million, we all know the stats are, the odds are against us because I think that 95% of businesses failed by the time they get to 10, uh, 10 years.

So how long does it take to set up a joint venture?

It's actually not that long.

By the end of this presentation, I'm gonna show you how to set up a million dollar joint venture in the next two weeks back.

That'll only take you two weeks.

Now all of, I always define partnerships versus joint ventures.

It's very important because if we're in a partnership, I expect people to work as hard as I do.

Or if you are in a partnership, I suspect you have the same, whereas a joint venture is when it's convenient for you.

So I like to make that differentiation because people say, Hey, let's do a partnership together.

And if we're gonna do a partnership, there's a lot of, you have to match the energy and resources that are gonna go back that lynches are much more easier and a loose relationship.

So I'll give you a couple of examples of joint ventures.

When I first started my first business 10 years ago, I went up, I couldn't be bothered going and hunting for clients all day, every day.

So I said, who already has my clients?

Which was the other agencies that existed.

So I'd go to the agencies in Melbourne and say, Hey, you've already, you've, you've got a web design business.

You've been going for how many years?

I see that you have 12 people over here.

Of those 12 people you have eight coders and four sales guys.

How, what would your business look like if you had eight sales agents, four coders for backup and you send us all the work and we build everything for you so we can build it faster, quicker, cheaper, and at a fixed rate.

And we'll give you the first one free.

So to this day, 10 years later, we have 36 agencies who funnel us work all day every day.

We employ more than a hundred people now.

And that company has been running five years ago.

I stepped away from the company, the GM runs that company.

That's the power of having a joint venture.

'cause these guys send us work whenever they want.

Skincare pharmacies.

Let me give you an example of one of my, uh, business partners slash friends.

He went into a company, I think it was 2013.

I'll pull that up in a second.

And actually I pull that up now.

And there's another example of the SaaS and business authorities.

So B W X, anybody heard of this company?

Put your hand up if you haven't.

That's cool.

So in 2013, you'll see in the middle over here, they incorporate B W X.

Today when they, this company was doing $6 million a year, they were spending $7 million a year.

So it was making negative money and lots of big businesses are run like that.

And by the time they got to 2016, so in two years they turned it into a $700 million company.

They did that with the power of joint ventures.

Last year I think they got up to a $1.2 billion market cap.

Now because of the way things are, they're at 600.

But the point is they did one deal.

So my whole thing is around one deal, one deal away, they did one deal with a skincare, with a pharmacy group in the uk, which had a distribution center of 2,500 pharmacies.

So they had an amazing product, which has proven and has worked.

They got a new distribution channel, which then increased their market cap by 600 million, which is very significant.

Now we can talk at different levels.

There's another sas uh, company that's a C R M that wants to compete against Infusionsoft and all the other CRMs that we have.

And they're getting amazing results.

What we did was we started interviewing all the best performers, which have great case studies.

And so from that we've compiled a book or a training saying, Hey, when you sign up to the software, you also get this book, which is blah, blah, blah, blah, blah.

And we've got a licensing deal with them where every time somebody signs up and they buy the book as the upsell, we get a clip of the ticket that took two weeks to put together and we get paid forever.

So that's the beauty of joint ventures.

So we've talked about that.

So why did joint ventures work?

Having you set out to do all the work is very attractive to your clients.

People come up to me and they go, Hey Johann, we'll set up all the stuff for you and we can share the profits.

I go, hell yeah, let's do it.

Because they're the experts of what they do.

They uncover hidden profit centers that you haven't thought about.

And I'll go through a couple of examples of that in a second.

Traditional businesses are time and resource pool.

We all know that the whole economy is meant to be shut down.

Yet I see most of us, a lot of us are still working like there's no tomorrow.

Why?

Because we're so busy.

There's so many different things, time and resources.

And when you don't have the brain space to just sit down and strategize on your business, other people can find different ways to help you make more money, right?

And you help business owners capitalize on very on what they already have with very little cost to list on the owners.

And we make the owners' life easy because what we do is we do all the hard work of strategy work.

It's a new source of sales that don't take away from the everyday sales.

And I'll walk you walk you through that in a second.

It's always a win for everybody.

So Jim RoHS help people get to where they want to go and you get what you want in return.

And it's also a shortcut to bringing new services or products to the marketplace.

There's only three steps involved in this located company that has a product to service with a track record of success and a complimentary company, a second company, so this is you not even, we're not even talking about your business.

All we're talking about is two separate entities, two separate businesses.

And you seeing the seeing where the, you can be the synapse, a contrary company that has a large loyal client list.

We broker the joint venture between them and bring both the company's sizable profits that they wouldn't have without us being part of the deal.

And then simply rinse and repeat.

Now I'll give you an example.

So I put this here as a trigger for my mind.

Scott and myself, were working on a deal right now.

We have partnered up with a funding firm.

These guys, the funds that they, that they provide is the, the smallest deal that they do is 20 million.

So they are funding a new payment system, a cashless payment system that's gonna be competing against the likes of Western Union, MoneyGram, that sort of thing.

They've come to us and said, Hey look, we're about to give these guys a hundred million dollars.

We need you to make sure that these guys actually succeed.

So they put us in touch with these guys, with the, their client.

Their client then comes to us and says, okay, we need to acquire 1.5 million clients in the next year.

How can we do that?

What's the budget?

So Scott, in his brilliance, we've been working together on this and yeah, so we've got a very sizable budget and now Scott, I'll leave you to uh, discuss that if you want to.

I won't mention the numbers.

And so by doing a joint venture with the funders, they're bringing us into their deals.

And so we get paid by making sure that these people succeed, these people's investments are protected.

This does not work with small mom and pop businesses or businesses that are struggling to keep the doors open.

If you go down this route, it's gonna be very hard because one, if we get a thousand people to buy that service right now, they generally struggle service a product.

So keep it simple, it's very simple, your powerful formula.

And we only work with proven products and services and the proven customer lists.

One of the sporting clubs has come to us and they said, Hey look, Johan, we have a database of 500,000 people on our database, but because everything's shut down, we can't do anything.

Can you help us monetize it?

So who would like to get access to a sporting club's 500,000 member database and what joint ventures can we do together to a, make sure that the sporting club makes money, B, that their clients, their end users get massive value and c, that we win.

So we offer our services to successful companies that are in a position to take action and capitalize on the opportunity quickly.

So that's like these guys, they've got a database that's 500,000 people.

They're like, they're ready to go.

They want to add value to them.

What, who can we bring to the table that can do the deal?

So why is this important?

It's because once we sign the agreement with those, with that client, we know that they have the resources to take SWIFT to action.

They can action it.

There's no, no more thinking, no more.

Oh, where are we gonna find money to do blah, blah blah.

And we all profit much sooner.

So that's why joint ventures, we can do deals really quickly and it saves us experimenting and trying to build lists from scratch and all those things.

With the deal that Scott and I that I mentioned before, we are already going to go to people who have the databases that are gonna make up that 1.5 million end users that we want.

So we're just gonna be doing micro joint ventures with all of these people.

It's a very low risk strategy for all the parties involved.

It's proven product, proven system, possible outcomes.

Hey, if we identify these marketing opportunities, we, one of our criteria is you have, they have to be doing at least 2 million a year.

Why?

And they have to be spending on marketing because when a business is at about 2 million a year, they've got the right systems, they've got the right foundations in place, they've got the right people in place to make sure that they can handle the influx of, of clients that send them.

And the reason they should be spending on marketing is because they're used to spending money on that budget.

I'll give you an example in our office space we have walking around and I'd see him parking his Jag at the front every day.

And I was like, okay, interesting.

Anyway, so I decided to look up his business, turned out that they're a property developer and they, they're spending $800 per qualified lead.

So I said, okay, I'm gonna be a bit of a smart, and I set up a new Facebook page and ran some ads to it and wrote out the Australian dream as to why they should own land and directed that to his sales team.

The next morning they wake up, well on Monday morning they wake up, they've got 16 new hot leads and I sent him a report saying, Hey look, we set up this campaign, it cost us $240 in ad spend and here's your leads.

He calls me up, he says, let's talk.

They built a business that's $2.5 billion in five years, which is pretty cool.

And so now just by identifying that opportunity they were spending, they're spending 150 grand a month on marketing.

So we could help them very easily.

So I'm just showing you the way we think here.

Lifestyle business.

Back to the joint ventures.

If you are only working with 10 clients a year and adding an extra $150,000 to their bottom line and ask, ask them for 20% of that new found money, that's $30,000 per client, which would make an extra 300 grand a year.

Very easy and very achievable.

How long will it take you to find 10 companies?

Well, guess what?

They're already in this room.

You can joint venture with each other and that is what Scott would love for all of you guys to do today.

What are the expenses of setting up a joint venture?

If you think about all of our businesses, what are the overheads?

How much do we have to pay to keep our infrastructure running?

It's quite a bit when you think about it.

Whereas with joint ventures, you have very little out-of-pocket expenses.

The clients pay the retainer up front.

We're doing another, we're launching another campaign for a exclusive business membership club that's not our own, it's another business.

And by us launching, whoever here has heard of Dan Kennedy's four letter direct mail campaign to their audience, now they have a really good list.

We are gonna be probably making them between 10 to 14 million just by sending those four letters to their list.

So they pay us a retainer upfront to get the project started.

And the clients, they pay for the cost for the marketing and for everything.

They pay for the cost to manufacture the product or service.

They're delivering everything as well.

We don't have to do any delivery, we don't have any investments in the infrastructure, in the list building and the products in the delivery of the service.

So it's really great to set up these joint ventures and we don't have any of the usual expenses and everything is paid by our clients.

Now let's talk about control versus control and use versus ownership.

Anybody who spent, excuse me, anybody who spent days or decades or years actually to build their company, they've got ownership of that, but they're allowing us to control and use it for their benefit.

So established companies are loaning us the use of all of their assets of infrastructure that has taken them years and sometimes decades and a lot of investment to create.

Plus they're paying you for the, to utilize the assets for them, which is amazing.

So if it was easy, everybody would do it, but it's about working smart and having a system and that's the requirement to making sure that this is successful.

So I'll give you an example.

One of my companies, the one I told you about at the start, we went from zero to 20 million in four years.

Our sales cycle at the start was very long.

We were finding it took us one year to convert a client.

Now what we do with building interactive is we put building management systems and apps into the buildings and turn them into ecosystems.

So all the stakeholders that support a building, they're in there.

When we started launching this, we, we found out who the, the five, the four competitors are.

And so we went to each one of the competitors and said, Hey, team up with us.

Let's joint venture, you can use our Salesforce as your sales Salesforce and we would like you to do the same.

We will never compete against you.

We will compliment you and together we can get more market share.

After we got the first one, then we got the second one.

Then the third and fourth ones, they had to come on board, otherwise they'd be removed from the marketplace.

Now there's five companies acting as one, which made us so powerful that we ended up dominating the industry.

And I don't think that there's gonna be a competitor for the next couple of years at least because it's such a strong offering and combined it's hundreds of millions of dollars worth of worth of r d and infrastructure to compete against us.

So again, all of this went from the reason for our success was because of joint ventures.

Example two, now there's some real estate people here I believe, and there's some business buying people here.

We built another company called Sherlock Technologies.

Sherlock Technologies came out of covid when, when, when Covid happened, we said, Hey, let's all band together and business authorities, 30 businesses joined together and we've launched, we created Impact app, which is a contact tracing app.

Now the government sent us a cease and desist through all this other stuff and they went with, with the Singapore app.

That's another story for another day.

But that technology is now getting launched in Bangladesh, uh, to 160 million people.

South Africa, Thailand, Vietnam, et cetera.

But from that, what happened was we got a new company, the new companies called Geolog Technologies.

And what happened was that company's now in existence for seven or eight weeks and it's nearly already hitting eight figures because we've got all these government deals BA based on the value that we added by creating that Impact app.

So now we have this infrastructure, we have people who we have who can do amazing things with apps.

How do I relate this back to real estate?

We've all been thought that in real estate you buy the s*******t house in the best street and then you do it up and you flip it.

The example on the screen you're saying here is a beauty app, it's a camera filter app which has 7 million downloads and that's in July, right?

Do you think we could find a company that would like access to this beauty app?

So we're now talking to the likes of L'Oreal.

They're just down the road.

And what we're gonna do is we're gonna acquire this app, we're gonna re-skin it and it's gonna become a L'Oreal app.

How long will it take us to, to flip this thing?

It'll take us about two weeks to do what we need to do here.

How much value is a database of 7 million engaged clients to L'Oreal?

I want you to start thinking about it.

There's only so much opportunity guys.

It's just so exciting.

The app store, there's I think 500 something million apps that there's, there's people who love to build apps, they get it out there and nobody's even touching them.

So we can go in there, we can fix them up, we can use J Abraham's three ways to grow a business, implement it into app technology and we can create a really good asset.

So you'll see I skip from example two to example five.

I know that I've got a very short amount of time, so I talk faster.

Example five, I'm sitting next to, I'm at the seminar and I'm sitting next to this guy and he goes, he's got a database of 38,000 engaged businesses, but he doesn't have the infrastructure to communicate with them.

He wanted a platform, he wanted a mobile app, all these things.

So I said, cool, let's do a joint venture.

We're gonna educate those 38,000 business owners.

It doesn't, and by the way, this is not to do with my company.

My company's gonna build the infrastructure for him in return for access to marketing to the list of 38,000 businesses.

What does that give us?

What value can we add to 38,000 businesses?

We can get them insurance, we can get them their whatever they need.

What, what does a business need?

We can sell them that at a cheaper rate because now we have group buying power with 38,000 businesses backing it.

So by doing this one joint venture, we have a powerful distribution network.

We fronted up the cost to build the infrastructure, but that's easy.

And it doesn't have to be my company's products that we're selling to this database of 38,000 Melbourne based businesses.

And what happens if we succeed in our first promotion?

Guess what?

They come back and they want more deals.

And if we have a proven system obviously and it converts a one shot marketing tactic into an ongoing distribution network, and now we can leverage these results to go and get more deals.

Now of those 38,000, we can quite uh, easily segregate the database and see which ones we wanna play with.

So this is what I call God mode.

God mode is when you become a distributor of distribution.

And this is where we would like to play.

So this is, this is our end goals.

So if you think of that this as the end goal, you'll quite quickly your brain will find those opportunities.

So are you ready for that 1 million example?

$1 million example of joint venture?

So one of the deal makers in our group goes to joint venture with a health club at Jim and he says, Hey look, I know that you're spending 20, $30,000 a month on advertising.

I just want you to gimme $10,000 with that $10,000.

Here is an invoice of the printing company that I'm gonna use to print out 20,000 flyers postcards saying that these people get a $99 membership for six months for free at your health club.

In return, what I want is I want 10% of the revenue that's generated from each one of these new people that come on board for the next five years.

Deal maker then goes to the fitness clothing shops that are around and franchises and he says, Hey, I'm gonna sell you these vouchers for $2 a piece.

I know it sounds little, but the clothing store, the clothing stores, he did deals with multiples of them and he made $30,000 by selling them for $2, right?

The clothing store then goes to their clients and says, Hey, when you, they knew that their average price that they were getting the average client value per transaction was $150.

They said, when you spend more than $200, we give you a free 99 bucks, added a hundred dollars voucher to this gym, which we obviously buy in the clothes, we'll go try it out.

So now they give them the free voucher, it's increased their client spend, it's increased the word of mouth referrals.

People were going crazy on social media and it led to multiple purchases.

The happy help club has 20,000 new leads approximately.

There's always drop-offs from that with no extra cost.

And they continued with their normal promotion so we could split test and try everything.

Um, show them that what was working six months later, the health club has closed 20% of those deals on an annual basis.

So they got 4,000 new memberships.

This is a franchise by the way, which led to an extra, let's round it up, $800,000 in profit for the gym.

And the person who made the deal walked away with 10% of that for the next five years, which is 80 grand.

So that's the art of the million dollar deal.

It's so simple.

And how long did it take for this person to put it together?

It was two weeks.

Where do you find deals?

That's your personal network, which is here, magazine's, website, everywhere you look, there's people looking to make deals.

Google, Amazon, Facebook.

I'll show you some examples in a second.

Um, this is a email that I get from pitch right And at over there you'll see it says, where is it?

Sorry, I've got stuff in the way.

It says we're looking for write down the, where'd you go?

Oh, the very first one it says, looking for long-term partnerships with a kid-friendly subscription box for our YouTube channel.

Then I go to YouTube, not to YouTube, go to our friend Google and type in subscription boxes for kids.

And here's the top 10 subscription boxes for kids.

So you become the person in between, you do the joint venture and you get paid forever, right?

Business in Melbourne.

So any of you guys in Melbourne business, if you look at the bottom right hand corner, it'll say free promotion for any business that's green and Melbourne business in Melbourne.

The city of Melbourne will promote your entire business to their entire database.

If you can show them that you are a great in business.

Now you can quite easily partner with the likes of B one G one and you are a great in business.

And now city of Melbourne's gonna promote you to their database if that's your ideal clients.

So there's so many joint ventures that are there all day, every day.

So check in time, are we all good?

I'll take that as yes.

Quick wins and constant cash flow.

So joint ventures, they bring in quick cash flow for you very quickly.

There's not many moving parts.

It's high profit to time ratio.

It's an essential strategy to open up new markets and hey, it's a lot of fun.

And businesses, what our businesses do is they create consistent cash flow.

It's ongoing, they grow exponentially.

While we are adding all the strategies, there's much more moving parts.

It's autonomous when it's set up after, that's what a business is, right?

It's autonomous, it's leverageable, it's scalable, it's saleable and it helps you leave a legacy.

So I want you guys to make joint ventures a part of your life because it increases the fund.

You get to leave a great legacy, it increases your cash flow into your business, which funds your legacy.

And let's do a live example in the room in our breakout rooms.

We've got David Jennings here and he is just released his book Systemology.

Let's try and figure out how we can help him make an extra 10,000 amongst us.

Alright, so let's begin.

That's my presentation for today.

Thank you.