Sections:

When two or more entities get together and agree to share resources for a project, this is called a joint venture. The sharing of both cost and profit is an advantage to both parties. These kinds of agreements are common both online and off throughout the world.

Depending of who the partners are, these partnerships fall into one of two categories. The categories are Insider or Outsider Joint Ventures. Below we look at both types.

When the products or services are jointly created by all members of the agreement, this is termed an Insider Joint Venture. Each member has equal access to everything involved. All private records are open to every partner and there are no exclusive areas involved. This is an equal venture.

In an Outside Joint Venture, each party remains separate. Each controls his own records including sales accounting. This is the type you will see most often. These come about when someone develops a product or comes up with a unique service. This individual takes his product or service to others who may have more clout in marketing. The two parties will pool resources money-wise to market the product or service. Most often, the profits will be shared equally, although there are exceptions to this.

Either type can show a profit for everyone involved. The advertising costs are cut drastically. The internet has taken an age-old concept and given it a new face.