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Thread: 50:50 deal. how could it work?

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    50:50 deal. how could it work?

    Okay, just had a meeting with a potential buyer and it seems that we might be able to come to an agreement about buying/selling but we had a very interesting discussion about getting in on this together.

    so, I have a couple of questions:

    *how to work who owns the domain?
    *how to work out who owns the clickbank account?
    *how to work out the payments?

    thanks

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    In a 50:50 relationship there's no substitute for trust. Any protection you build for yourself has got to be via the contract, anything else is messy. Once that paperwork is taken care of, it doesn't matter whose name the domain is registered in - if there's a dispute you either reach an amicable agreement somehow or go to court.

    Because of the costs involved 50:50 best suits two parties who trust each other implicitly ...or where the deal is big enough to make it worthwhile to go through the legal process.

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    Hi Kefalo,

    Clinton is exactly right. Trust is the key. Also, here, is where an exit strategy needs to be in writing as well as an agreement about who makes what decisions. This is especially important when it comes to expenses. Few things are more frustrating as when your partner buys some expensive doo-dad with the company cash and expects you to foot half the bill. On the other hand if you see a need that takes some investment but you are certain it will pay with a handsome profit - what do you do if your partner won't buy in?

    You both need a clear understanding of what is expected from each of you. Otherwise you could spend a great deal of time squabbling.

    Andy

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    It might be worth setting up a corporation or LLC to own the assets, and you can each own 50% of that. Otherwise, whoever owns the domain will be the one in control if there is an issue down the road.

    A 50/50 split is tricky because there is no definite way to resolve disagreements, so it is important that you and your new partner are on the same page and everything is well documented (as others said already).

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    sounds it could get very messy, this guy seems like a good, reasonable man but my past experience from offline businesses tells me that money changes perception in a split of a second...I think I'll give up on this...

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    Quote Originally Posted by Kefalo View Post
    sounds it could get very messy, this guy seems like a good, reasonable man but my past experience from offline businesses tells me that money changes perception in a split of a second...I think I'll give up on this...
    I wouldn't totally give up on it that fast, but you do need to make sure you know who you are working with and make sure your interests are protected.

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    that's the reason, I am fairly new to the game and it's the deal is not big enough to pay attorneys so that I make sure I am protected...I might end up with the short stick and I developed the thing in the first place and I was prepared to let the guy in for next to nothing just because of his expertise and things I could learn...but now I am not so sure...

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    just because of his expertise and things I could learn...but now I am not so sure...
    Don't give up, but I will say this: Why 50/50? If he's an investor in your business, make sure that it stays that way. Look for a way to retain overall control, and getting a better price out of him. 70/30 or 60/40 would be better.

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    I'd say even if you could get him at 51/49, you'd be in much better shape.

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    I don't like the idea of partnerships, but that's just my personal preference.

    What would you be getting out of this arrangement vs selling the site?

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