11 {{ upvoteCount | shortNum }}
11 {{ upvoteCount | shortNum }}

What would you do with such business partner?

by mandos123
9 replies
Long story short,

A year ago I went to full IM and started to generate money through creating niche sites & PPC campaigns.

At first, I was a bit doubtful because I had failed so hard in the past, google had penalized me, adwords banned me etc, but I really wanted to give another shot.

Me being scared, I quickly asked one guy (not friend, but I know him) to help me out. He had not much previous knowledge about IM, but he was pretty smart guy. I also needed few hundred dollars to get things going and he was kind enough to "invest" it to my projects.

I told him that we could split the money once we succeed. He helped me in linkbuilding, created graphics and made some content... But I had all the knowledge, and I even did more work than him. I think it was more like 20%(he) - 80%(me).

Time went past and our (more like mine) sites and campaigns started to skyrocket. We are currently making ~$20k, 10k goes for him, 10 goes for me.

BUT, I feel ******* bad about it. I might be too greedy, but I do believe he is not putting enough effort in it and he is not deserving it. From the past 1 year he haven't learned much by himself and seems he is not passionate about it (like I am).

In August I went to university and I told him that I don't have much time to write content, create links and manage adwords campaigns... I hesitated a bit, but I truly believed he will put some effort in it.

However, 2 months went past and he haven't done much... Maybe answered few e-mails, wrote 1 blog post and that's basically IT... When I told him that he should do this and that he kindly said "yes, I'll do that, no prob , I'm more than happy to help you, just tell me what I need to do".

But the thing is, he is not doing actually anything. He wants to get an office and work with me, but I more comfortable working at home since I don't have much time because of the university. However, I could easily push 2-3 hours a day for IM from home, but he ... well he's not doing much. I even created a project for him and told that he could take 80% of it if starts taking steps - but he haven't done nothing, lol.

I don't know if he is lazy or just don't have time or he is just not passionate about it, but I'm about to throw him out.

What would you suggest me to do in this kind of situation?

Right now I'm planning to sell all the sites and campaigns and start from scratch - and this time alone.
#business #partner
  • Profile picture of the author Steve B
    Learn from your experience.

    It's always best to put any agreements in writing up front.

    Taking on a partner, even if it's your brother, is a serious matter and you should spell out in writing what each partner does, how they will be compensated, what happens upon ending the partnership, etc.

    Becoming a partner is like getting in bed with a stranger - you'd better acknowledge and understand what you're about to get into.

    My advice, barring any previous agreement, would be to offer your half to the partner for $ X and part ways as soon as possible.

    If he doesn't agree, just stop doing all the work and begin building your own business. In a month or two as the income from your current sites plummet, go back to him and offer to buy out his half for a fraction of your first offer. If he accepts, build up your sites again and move on by yourself. If he declines, just let the sites go. The value is in your time and if you are careful not to give the partner any more of your time, you can focus on building your own business.

    Just my thoughts,

    Steve
    Signature

    Steve Browne, online business strategies, tips, guidance, and resources
    SteveBrowneDirect

    {{ DiscussionBoard.errors[8542242].message }}
    • Profile picture of the author mandos123
      Originally Posted by Steve B View Post

      Learn from your experience.

      It's always best to put any agreements in writing up front.

      Taking on a partner, even if it's your brother, is a serious matter and you should spell out in writing what each partner does, how they will be compensated, what happens upon ending the partnership, etc.

      Becoming a partner is like getting in bed with a stranger - you'd better acknowledge and understand what you're about to get into.

      My advice, barring any previous agreement, would be to offer your half to the partner for $ X and part ways as soon as possible.

      If he doesn't agree, just stop doing all the work and begin building your own business. In a month or two as the income from your current sites plummet, go back to him and offer to buy out his half for a fraction of your first offer. If he accepts, build up your sites again and move on by yourself. If he declines, just let the sites go. The value is in your time and if you are careful not to give the partner any more of your time, you can focus on building your own business.

      Just my thoughts,

      Steve
      Thanks.

      This is pretty solid advice. Of course I'm stupid that I didn't do any agreements, but it was mostly because I was still hesitating and at first he seemed like a guy who is workaholic.

      However, after $$$ started to roll in he went pretty lazy. But that's not the biggest issue with him. The most disturbing thing is that he is not learning nor constantly reading IM blogs like I do. I feel like I'm ahead of the curve while he is behind the curve and indeed he is wasting my time at the moment.
      Signature

      None

      {{ DiscussionBoard.errors[8542255].message }}
  • Profile picture of the author 10kaday
    I would just forget the sites and go on to the next thing you know how to do it now, just starting building your own biz
    Signature
    {{ DiscussionBoard.errors[8542276].message }}
  • Profile picture of the author ronrule
    I don't think he's the problem here... I think maybe you are.

    You were struggling... he came in with a business background, a more intelligent way to approach the market you were getting banned from, and the capital required to help you guys get started. The capital alone automatically entitles him to doing less of the labor. He paid the bills, it's your responsibility to pull the majority of the weight. That's what being the investor buys him. This is how every venture capital deal in history has worked.

    Further, he's talking about getting an office, and you want to stay home and work for 2-3 hours a day - that tells me he's more serious about growing the business than you are, and is probably getting tired of working with you. You're being lazy and unappreciative of the support you received in the early stages. Either suck it up and enjoy the paycheck, or walk away and let him run it without you. I suspect you'll be quickly replaced, he'll be just fine, and you can branch out on your own without a partner.
    Signature

    -
    Ron Rule
    http://ronrule.com

    {{ DiscussionBoard.errors[8542311].message }}
  • Profile picture of the author JohnMcCabe
    Given that a) you didn't have the seed money, b) you managed to get yourself banned from Adwords and c) you have no written agreement, he may feel he's already done his part.

    No matter what he says, he ain't gonna change. At least as long as that $10k/month keeps rolling in fromwhat he's doing now.

    You might be able to sell your share of the business, depending on what assets are in whose name, but without a formal partner agreement, that's a long shot.

    So you basically have two choices - keep on keeping on, or fold your tent and move on, sadder but wiser...
    {{ DiscussionBoard.errors[8542322].message }}
  • Profile picture of the author Anonymous Affiliate
    When it comes to business joint ventures, I'm usually very analytical about it: the idea is to create a mutual synergy so 1+1 > 2. When most of the input (and output) is put in by one of the partners, the formula becomes more like 1.5 + 0.5 < 2, and that's when things start turning sour.

    My advice: be polite with your buddy, but be strong: part ways.
    {{ DiscussionBoard.errors[8542526].message }}
  • Profile picture of the author clever7
    It’s a bad idea to have a business partner who doesn’t help you and takes half of what you make.

    You should ask him if he agrees on selling his part or if he wants to buy your part of the business.

    Since you worked more than him, it would be bad to lose all your work and your customers, etc and begin again. You should try to kept this business without him. The conditions online are quite worse now, they are not like they used to be in the past.
    Signature
    Join my Affiliate Program and Sell Original eBooks
    Scientific Dream Interpretation – A Solution to All Problems

    How to Be Extremely Successful in Life
    {{ DiscussionBoard.errors[8542652].message }}
  • Profile picture of the author Moneymaker2012
    You still told the story very long way,
    What I see is your partner is arrogant and ignorant. You should seperate your business, take controll of everything or find a better partner.
    Signature
    {{ DiscussionBoard.errors[8543625].message }}
  • Profile picture of the author esuresh
    I think that you are in the same boat where a man from Zero reaches 100 with the help of a friend. As soon as you see success, you forget what your friend did for you. You forget that you reached this position because of him. if he had not invested in your product and has not helped you, you would not be in the place where you are now. Now you do not need him. You can do with out him. So you want him out. It is the usual way that any person thinks once you achieve your goal. This is the reason why partnership business does not last long. You think only about yourself.
    {{ DiscussionBoard.errors[8543701].message }}

Trending Topics