In the introduction, you learned that a large number of joint ventures fail. To keep this from happening, consider these common reasons that joint venture agreements are unsuccessful.

Control issues – As a small business owner, you are used to being in control. In a JV, control must be shared, and this can be a problem if it is not taken into account before a partnership is agreed upon.

Responsibility – Entrepreneurs and small business owners are busy people. A JV means even more responsibility. Structure your agreement so that it includes sufficient time for running your current businesses, as well as the partnership.

Culture clash – Every business has a specific culture. Even though your partner may be perfect for you, and vice versa, you need to understand and accept culture differences.

Imbalances – Plan to address any perceived, or actual, imbalances in responsibilities, commission, expertise, or any other area.

Profit distribution – This should be fair and balanced, and agreed upon beforehand.

Competition issues – These generally arise when you partner up with a competitor. Your agreement should be structured so your new partner does not perceive you as stealing market share.

Poor planning – This course removes this common JV pitfall. By following the information provided in this course, and completing your learning activities, you won’t experience problems that arise from lack of planning.

Partnership Agreements and Contracts

For small, straightforward JVs, you and your partner can write out a simple agreement both can sign. You should have this notarized, or otherwise witnessed and signed by a third party you both agree on. In more complex situations, a more in-depth contract will be required.

One example of a joint venture agreement template can be found here.

Bear in mind, this is just a sample template. Your agreement may need to be drawn up by an attorney, and whether or not you seek legal counsel needs to be agreed upon by both parties.

JV Agreement Considerations

Your situation may be unique. There could be very specific responsibilities, tasks, and/or performances that are uncommon to most situations and so should be mentioned in your JV agreement. In most situations though, you should consider covering the following areas.

• Beginning and ending dates of your agreement
• Management considerations, responsibilities, and contributions of each partner
• Profit and commission structure
• Conflict resolution
• Frequency of necessary meetings and communication
• Partnership considerations outside of this JV
• Decision-making responsibilities
• The handling of staff, resources, customer service
• When and how dissolving the partnership is handled

If you are in an established field, there is probably an existing JV template available that will cover all of your needs. Search for “your industry name JV agreement template” online, where you replace “your industry name” with the market or field you are doing business in. A search for “free joint venture contract” also reveals plenty of boilerplate forms you can consider.

Affiliate JV Agreements

Working through JV Zoo, ClickBank, ShareASale or other affiliate marketplaces means benefiting from an agreement that is already set in place. These and other affiliate networks and programs have established contracts which both parties can sign. If you are working with an independent partner, there is a free, sample affiliate agreement temple available here.

Key considerations for any affiliate agreement include, but may not be limited to, the following items.

• Names of each partner, business
• Details of the affiliate program
• Duration of the program and end date
• Goals and objectives
• Individual responsibilities
• Terms and conditions
• Payment schedules, commission structure
• Conditions for termination
• Signatures