Contracting a website

10 replies
Has anyone here created a website with a few partners and run into the problem of who owns what?

I am in that situation for a potential money making website with 2 other friends who are the web programmer, web designer, and I provide the SEO and will be paying for all the marketing.

How do I make a contract explaining who owns what percentage of the website? Or is there any other solutions to this problem?

I just don't want to do all the SEO and offline marketing for free then get jipped out of ownership of the website.
#contracting #website
  • Profile picture of the author onegoodman
    First, SEO is more important than programming, if you website is not getting traffic, it is useless.

    I can't really help you with how you guys decide that, I have been looking for partner for a long time but got none so far lol. Probably because I am so busy doing all the tasks by myself.

    I would suggest you guys agree on each share. A contract will be the best solution, The three of you can either make it a contract or create a company with more than one owner.
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  • Profile picture of the author IprovideSEO
    So we should write a contract ourselves outlining who does what and owns what percentage of the website?

    That's what I was thinking but it seemed kinda unofficial to just write on a plain piece of paper and have everyone sign it.

    Thanks for the response goodman
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  • Profile picture of the author onegoodman
    my pleasure. I hope it helped. I am sure other warrior who have more experience may provide you with better ideas.

    Wish you all luck.
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  • Profile picture of the author IprovideSEO
    Gus, if you are looking for SEO you're in the best place. The warrior forum answers questions and provides answers to tons of information regarding SEO.

    Also if you look online and spend time reading SEO/Internet Marketing articles you will be able to do your own.
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  • Profile picture of the author Hugh
    First you have a meeting to discuss ownership. etc.
    Then you create a "Memorandum Of Understanding".
    Have each name typed next to a blank line where each can "Approve It".

    Hugh

    P.S. I'm NOT a lawyer.
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    "Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon." -- Winston Churchill

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  • Profile picture of the author traficmaster
    You must get a contract writen of it,we have done it (slit the work) and worked out great.We work on a 50/50 revenue share.
    Other,seo is not more important thatn coding,it about 50/50.If you have a crap looking site with a design of 1999 and not working functions than doesnt matter how many visitors you get,they will not convert.
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  • Profile picture of the author simonbuzz
    Banned
    As you are doing the hard part Called SEO I think you should get at least 50% of the income that site is making
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    • The cash outlay is yours, is that correct?

      Unless the other two are also willing to put up cash, at least 51% of the company should be yours. You also need to consider the possibility that one of your friends will bail on you and decide to spend the next 6 months surfing in Australia.

      So it's a complex situation and you need legal assistance. Before you say you don't have money for a lawyer, if you really believe in this concept and think it has money-making potential, you can't afford *not* to hire a lawyer.

      fLufF
      --

      P.S. Watch a couple episodes of _Shark Tank_, then revisit this issue.
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  • Profile picture of the author IprovideSEO
    Thanks Hugh! I am already creating a MOU because this will definitaley set everything in stone.

    Trafficmaster, I agree that web design is very important, because ultimately its our product but what I am doing is making the product well known so I think a 50/50 split is fair.
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  • Profile picture of the author IprovideSEO
    The cash outlay is between two of us, myself and the web designer. We are initially paying the web programmer out of our own pocket but at a significantly reduced price because he wants to be on board with the website.

    I have created a Memorandum of Understanding and will receive the necessary signatures for each of us splitting the percentages of revenue the website earns.
    Hopefully this will be enough legal evidence just incase anything every happens.

    Thanks for the response fluffycat, (Yes I do watch shark tank, definitley a show of value on how investors do business).
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