What Is A Fair Rev Share Deal?

I'd suggest that is something for the two of to decide together. Negotiate with your partner and reach an agreement based on who is bringing what to the party.

If 2 people are involved: I wouldn't work for less than 50%. And, even then, I probably wouldn't do it. Example: Someone put up $50K for a business. 7 months down the line I come up with an idea - that I put into practice - and it ends up generating $50K a month for the business. Does he deserve 50%? More? Or less?

In your situation: 50% or nothing.

It depends on the relationship you have with your partner. I've been in very similar circumstances, but I also created and owned the FB ad accounts, so I brought more to the table than just running the ads. In that case, we did a 50/50 profit share.

Your partner might feel that he is taking a bigger risk by putting up the money, so he deserves a bigger portion. However, his profit is contingent upon your ability to generate income. Since he is looking to you for media buying, that means he couldn't turn the money into profit without your skill set. Don't sell yourself short.

I would suggest a sliding scale based on performance. With direct marketing, I strive for at least 150% ROI, and I can usually keep a good campaign around 200-250% ROI. - If I was confident of my abilities, I would suggest 30% of the profit on anything under 175% ROI, and 50% profit on anything over that. You two can work it however you like, but I think that is a fair, and common method to use.

YOU HAVE ENOUGH FOR A CONTRACT!!!!!!

Don't fool yourself into thinking you don't need a contract, especially when you're putting in the work and someone else is putting up the money.

You can write a contract with a crayon, and it's legal.

You don't need money for a contract, you need both parties to agree and sign it.

I've seen some good people get burned doing business without contracts, what ever you do, don't go down that road. No matter how 'nice' you think they are, or how well you know them. Money is the root of all evil and people stab eachother over $10... what will happen when it is generating 50k a month and he realizes he can kick you to the curb and hire someone for a fraction or even manage it himself because you taught him enough along the way?

Man... I cannot stress the point enough... don't do a business deal without a contract. if you want a lawyer to do it, have this guy pay for it... he's the bankroll anyway.... so if necessary require him to pay for his attorney to write it up and another 3rd party attorney to go over it with you.

Or just write something up yourself with very basic and plain English that lays out what you're doing and have both people sign it. Any serious business person who won't sign a contract for something like this, is probably going to burn you anyway.

Did I mention you should be very cautious of anyone who won't sign a contract?

I would pay a little extra and get it notarized. As far as what to put in it, lay out exactly what your share of the profits will be, when you expect to be paid, how often you want payment and the method of payment. Any and every detail you hammer out beforehand should be included as part of the contract.

People tend to "forget" crucial details when money is involved. They're a lot less likely to forget something when it's on a signed contract.

He has the product.

You market it.

Both of your split the cost.

Then it should be 50-50 profit sharing.

If you don't want to put a penny, then I'd say you deserve 20-25% tops if you're good at doing it.

If you want it to be revenue sharing instead of profit sharing then I don't think you deserve more than 2-5% tops because you're a liability to begin with. Whether or not you'll bring anything to the table, nobody knows.

But you can't expect 50-50. If he wants he can get an employee for this job. The idea is his. The effort is his. The money is his. You're doing the least work in this whole process.

If on the other hand you can guarantee better results than what money could buy him, then you can think of 50-50 profit sharing or 20% revenue sharing. I doubt you could do that though.

Here's some good, (if a bit primitive), advice:

"If it ain't in writing - it ain't"