Help Defining Parnership Terms

cdogstu77cdogstu77 Posts: 1subscriber
edited February 2012 in Business Planning
I've received some great advice here before, so I'm hoping the community can help with a dilemma I'm having.

I was in the process of stating a site yet found a similar type site available for sale. I approached the website owner about acquiring his domain which had been dormant for four years, yet had been a highly profitable business for over three years. He was asking too much for the domain but I asked if he might be interested in letting me resurrect the business and run it. He has tentatively agreed.

I will be responsible for the re-building of the site with new systems, backend etc. We will use his old content and systems intelligence to operate the website.

He will be involved in the operation of the site but on a small scale-prob 10-20% versus my side of efforts.

My question is this. What sort of profit sharing/equity arrangement makes sense? He has said he doesn't want to sell the domain but i am scared of getting the site built to a point and I have no equity in the business aside from annual revenues. Does anyone have a somewhat simple solution to my problems? Thanks!

Comments

  • AshleyWhiteAshleyWhite Posts: 1subscriber
    Look for a partner who has all the business attributes and skills that you lack. If you are very good at product development and creation and are a poor marketer, a sound marketer is what your business needs.Your business grows stronger and faster this way, where you have capable hands manning strategic positions.
  • gpt123gpt123 Posts: 0subscriber
    Hi,
    Always remember that, partnership means more than 2 people are sharing business, ideas, goal and achievements. All partner should need to transparent to each other with sharing all business secrets and future planning. For making partnership, you should need to make legal partnership deed with clarify all things including sharing profit and loss.
    Thanks and regards,
    Gitesh
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