The JV parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They both exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.
Internet Marketing Joint Venture (Affiliate JV Partner)
The Internet Marketing Joint Venture is a little bit more loosely hung than formal and legalized JV partners, although in high level joint venture projects involving large lists and potentially millions of dollars worth of sales may also have contracts associated with them. The classic Internet Marketing Joint Venture is traditionally controlled by the affiliate software used to keep track of automatic customer sales, rendering the need for legal contracts less formal. Affiliate softwares will tally the number of sales made when a JV partner does an email blast to their list, and the JV partner may log into their affiliate area to confirm the number of sales from that blast.
A legal contract in this case is required only to assure hat the percentage payout agreement remains clear. I have met JV partners who do not use legal contracts because they know each other so well, but we recommend that you use a basic JV contract when working with high percentage affiliate or JV affiliate payouts.
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