The dictionary defines ‘Joint Venture’ as: “A joint venture (often abbreviated JV) is a legal entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. The venture can be for one specific project only, or a continuing business relationship such as the Sony Ericsson joint venture. This is in contrast to a strategic alliance, which involves no equity stake by the participants, and is a much less rigid arrangement.”
There doesn’t have to be a high risk of failure involved and a new entity is not necessarily formed. Individuals and companies do joint ventures all the time… out in the brick and mortar world as well as in cyberspace. As a matter of fact, the joint venture is one of the better kept secrets of Internet marketing. The joint venture is an idea as old as time. The cavemen most likely figured out that buy pooling their efforts they could more easily feed and clothe themselves. By pooling talents and resources so much more can be accomplished than any one individual or company could accomplish alone. That’s why so many individuals and companies enter into joint venture agreements. Joint ventures are the stuff that fortunes are made of.
