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Help! Someone wants to merge.
brandags
subscriber Posts: 1
Hello,I`m a programmer and entrepreneur. My web-based business has been growing well and is really starting to take off. It`s a subscription-based service where users pay a monthly fee to use the site.Recently, another similar service (a competitor that offers only a portions of the features we do) decided they want to merge with us. I like the idea of bringing on their customer base (which is quite small), and giving them a percentage of the payments from the customers they bring on. I would like to simply build their existing functionality into our site, and give them commissions on any users that use that part of the service).But it seems like they want equity ownership in the entire company (which is an LLC). If all they`re really bringing to the table is their customer base and business expertise (which they do seem to have more of than me), should I consider giving them ownership in the company, or should I stick with a commission-based system?He`s going to be sending me a more detailed proposal tonight, but I`ve got a conference call with him tomorrow and am not quite sure what route I should go. Sorry if this message was vague. I can post more details if you need it.
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