You might know of Sydney Johnston, as I did, from her online auction writings - the e-book Make Your Net Auction Sell! launched her into prominence, and I've thoroughly enjoyed her great whole-person e-zine, "Auction Gold" (at www.AuctionKnowhow.com).  Turns out she's had a great deal of success - and fun - doing auction-based joint ventures...

What I mean by "whole-person e-zine" is that Sydney writes for the benefit of her readers as businesspeople and human beings - whether about auctions or not (and of course most of it is). ...I always find something of use in each of her issues, even though I haven't dabbled in auctions much.

This well-roundedness shows up in the range of her interests, even when we're limiting the notion to auctions (which is just one of them).  She's auctioned off scores of different things, from watches to e-books to expensive antiques.  

Most online "auctioneers" work for themselves...  But more and more seem to be taking a JV approach to the business - helping others sell their items on eBay et al.

eBay has even set up a mechanism to formalize this type of activity.  "They're just cashing in on a trend with their trading assistance program", says Sydney. ...But people have been joint venturing with others since online auctioning began (and no doubt will continue to do so, in and outside of any programs offered).  It's just a matter of common sense.

As Sydney put it, "I used to think, 'Why would anybody give up a large percentage of the profits on selling something by having someone else do what they could easily do themselves?'  But some people just don't want to be bothered with another step, don't like the Internet, don't want to put in the time to learn something new, don't like the detail of shipping and corresponding, and that sort of thing."  So it does make good sense for some to turn the auction process over to another person, capitalizing on the experienced seller's knowledge.

A friend of hers involved in real estate (as Sydney was) had a bunch of fairly expensive real estate courses he'd bought over the years and didn't want to keep around anymore.  He suggested that Sydney, now with auction expertise, could sell them for him on eBay and keep half the profits.  He sent 2 big boxes of tape sets and manuals over to her house... and they sold so readily that she "wished he had 20 more!"

This opened up a whole new train of thought...

One day, Sydney was visiting a nearby touristy community full of artisans' shops.  She thought that a lot of the wares offered looked like they'd be good sellers on eBay.  In talking with several of the craftspeople, she discovered that they were very open to having her try selling their products online...  "Because many artists really don't want to market - they just want to create".  And most are used to the idea of having sales reps push their products for them.

She put it to them:  "If I can't sell it, you've lost nothing - if I can, you have another outlet for your products."  She did sell a lot of fine craft products on eBay (and only got out of it because she didn't like to have to drive around to pick the items up).

Depending on the product, this sort of partnership can be a very lucrative activity...  One man she knows makes about $25,000 per month selling paintings for other people on auction sites!  (He even represents artists overseas - shipping issues seem to be of minor concern in auction sales... especially on higher-ticket items.)

In Make Your Net Auction Sell!, Sydney tells of a delightful joint venture that began with a friendly chat with her dry cleaner...  He happened to mention that he had many "left items" that people had brought in to have cleaned and then never came back for.  Hmm...  What if she were to put these (many very fine) clothes up on eBay to try to sell them? - and they would split the profits.  He readily saw the possibility in turning a liability into an asset - and was happy to agree to the experiment.  Sydney was able to make a good income (and to assert to her customers that "these clothes have just been professionally cleaned"!).

...Soon, he was sending his children around to a vast network of other dry cleaning services to collect their left items!  The originators would receive half, and he and Sydney split the remaining 50%.  That was still a great deal for everybody - and because the other businesspeople trusted the man they knew, Sydney was vouched for by him.  (The clothes that weren't worth selling were written off as a business deduction to charity - which was the normal route for the dry cleaner to take with clothes he didn't really know how to value as retail items.)  The man became so successful that he eventually sold his business - and Sydney's "source" dried up. ;^)

This points up the importance of trust in a joint venture...  Sydney believes that "the secret of successful joint venturing of this sort is to build on relationships."  If the JV partners know and trust each other (and others who might be involved have faith in the enterprise), things will go smoothly.  The other dry cleaners didn't even feel the need to list the items they handed over - and the results proved to them that their trust was well-placed.

Sydney has also teamed up with pawn shops and antique dealers to handle inventory that wasn't being turned over - again, turning liabilities into assets for these businesspeople.  Online auctioning (all over the country, continent, or world) can be an especially valuable service to them, since they generally have only very localized outlets.  (It would be worthwhile considering what local businesses might benefit most from such an expanded market.)

Another factor critical for online auction success is always emphasized by Sydney:  You have to understand your products and your market.  (Which might make reselling unclaimed goods at such a place as a storage facility - where the stuff could be in any category - more difficult.)

"I don't know or much care about paintings... so I'm not going to be successful selling them, for myself or others.  But what I do know about, I can sell - because I also know what motivates people to buy those things."  A lot of people selling on auctions are true specialists in their field - because that's where the real money is (assuming you start with high-profit-margin products - that you know people want!).

One fellow Sydney knows exploited his knowledge of antiques in very ingenious way...  

Though he worked for only minimum wage as a clerk in an antiques mall, he had a very successful enterprise.  He took his laptop computer to work with him every day...  And when someone brought in a consignment item that he saw would probably sell on eBay for quite a bit more than the asking price, he would list it online in a short-term auction.  Almost always, he could close the auction before anyone wanted to purchase it from the mall - at which point he'd buy it... and ship it off to the auction's highest bidder. ...And everybody was happy!

One problem she's run across in JVing with people is that some think they want her to sell their products... but just can't let go of the process and let her put her expertise into play.

"One artist wanted me to sell his work online.  But he insisted on approving - and changing - all the minutiae of the ads... until it sounded like something written by and for professional artists!  But that wasn't going to sell compellingly to eBay customers."  Others have just given her their products and said, "Here!" - and let her do what she knows best.  (Trust!)

Another problem JV is the person who wants her to do all the work, take all the risk, cover all the payments... and then make only 1/3 of the profits.  This is a pie-in-the-sky approach that seems to be popular with middlemen - JV brokers, in essence - who expect to take a big cut themselves as a finder's fee.  As Sydney has learned, "The JV has to be profitable for all the people involved."  Savvy businesspeople will let the naive JVer pass on to someone else (and learn to develop more realistic expectations along the way, one hopes).

Two other auction-related joint ventures cropped up in our conversation...

Some grassroots "trading assistants" locate good income sources via newspaper classifieds advertising high-ticket items, such as RVs, boats, pricey cars, etc.  They might take a straight percentage commission, or ask, "What's the lowest price you'll take for this?" and keep whatever they can make above that... and auction it off online.  "The trick is to call the owner a few weeks after the ad first appears in the paper - when their sales optimism has faded a bit", Sydney reports.

While this is a very short-term joint venture, there would be nothing to prevent one from teaming up with, say, a used RV dealer for a longer-term association.  Any business with inventory pushing the limits of space or time might be eager to get some of it off the lot (or out of the marina?).  Too, one might look for clubs to link up with, whose membership might have a constant turnover of relevant valuable possessions (antique car clubs come to mind; RVing groups likewise).

And, of course, you need to know your product and your market. ;^)

A tip that has been passed on to Sydney from someone who does this type of JVing regularly is that people over 60 - who tend to be "down-sizing" their households - are more apt to be sources of good deals on higher-priced items.  (How to find such folks is open to creativity...  Like that of the antique specialist who rented a spot in a collectibles mall and offered free hearing aid batteries to those coming in to browse!  He developed relationships with these older folks, and many became his JV clients when it came time to sell valuable items they didn't hanker to have around any more.)

The second of these JV gems is the idea of co-operative buying of products...  A fellow Sydney knows has a contact in China for highly saleable computer "toys".  The trouble was that in order to get a good price, he'd have to invest way more than he wanted to in a minimum order. ...So he got several other auction sellers together to make a group order (each ordering different items so they wouldn't be competing with each other).  

Again, trust comes into play in such a situation.  "You have to be sure about the people you're sending your money to," Sydney stipulates.  "But I wouldn't know anything about dealing with people in China - and I do know this guy will handle things well - so it's a great opportunity for me and several other people."

Which illustrates a closing observation she has on joint venturing...

"The best business partners are probably dissimilar."  It's great when each person can complement the other's talents and skills.  As she says (and it sure resonates with me!), "The weakness of a one-person business is that you have to do everything yourself."  

Joint venturing can open doors and make life easier.  Whether you're an auction seller, retailer, or service businessperson... try linking up!
  

Sydney Johnston is the maven of http://www.AuctionKnowhow.com (where you can sign up for her e-zine, "Auction Gold") and the joint author of these e-books on online auction marketing:  Make Your Net Auction Sell! and Putting Information Products on the Auction Block.
  

• Many joint ventures might be made from the basis of saving other people time so that they can concentrate on more congenial aspects of their businesses.

• In the auction world, products are what it's all about...  And new products (or should I say, used products?) - at good prices - can come from surprising quarters, if you keep your eyes open

• When a joint venture is a success for the original participants, maybe it can be spread to other participants as well.

• ...Even when you take a lower percentage of the profits, a continuous stream of ready profit potential might make up for that.

• Developing friendly relationships with people of all walks of life is good business sense - you never know where it will lead! ...And the trust factor is likely to be in place in advance, for any joint venture you might consider.

• Knowing your product and your market is basic for any type of business... and definitely will give you an edge in online auctioning.

• Cooperative buying might also be used for any type of business (and in fact can be an excellent opportunity for JV brokers to work - because great deals can be put together on behalf of all the buyers, as well as by one of them).

  
For those serious about JV marketing...
  

    

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