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JV Partner Advice

by smartsites
4 replies
Hi,

I build facebook fan pages for local businesses and I have a company that has a software app that he wants to sell with my fan pages as one product. He is going to do all the selling and we split the profits.

I've never done a JV so I don't even know what is involved and I meet with him Monday and I don't want to look like an idiot so any advice you guys could give me I would really appreciate it.

Things to watch out for, things to expect etc. He's wanting to know what my cost is to build X number of fan pages.

Thanks,

Craig
#advice #partner
  • Profile picture of the author RRG
    Originally Posted by smartsites View Post

    Hi,

    I build facebook fan pages for local businesses and I have a company that has a software app that he wants to sell with my fan pages as one product. He is going to do all the selling and we split the profits.

    I've never done a JV so I don't even know what is involved and I meet with him Monday and I don't want to look like an idiot so any advice you guys could give me I would really appreciate it.

    Things to watch out for, things to expect etc. He's wanting to know what my cost is to build X number of fan pages.

    Thanks,

    Craig
    If he has a market to sell to, it could be a good deal for you. Allows you to reach people you probably wouldn't have otherwise. Found money, in other words, for you.

    Make sure you have a back end in place so you can make up for the 50% reduction in your revenue on the front end service.

    Also, make sure you have a contract or MOU in place with him so each party knows the score, what are responsibilities of each party, how the money will be collected and and paid out, etc.

    You should be actively seeking others who have complementary but not competing products and services who you can JV with.
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    • Profile picture of the author Bryant121
      Hello,
      No matter what you do it may turn out into a negotiation process.
      Do not start off too low or too high.
      Leave yourself some wiggle room to make the deal work out for both
      parties involved.
      Good luck.
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  • Profile picture of the author smartsites
    Thanks RRG for your advice. What is a MOU?
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    • Profile picture of the author RRG
      Originally Posted by smartsites View Post

      Thanks RRG for your advice. What is a MOU?
      Memorandum of Understanding

      It's not exactly the same as a contract. With JVs, you want to work with people you trust. If someone's going to rip you off, a contract won't stop them. Plus it can be expensive (dollars, energy, etc) to pursue litigation.

      The purpose of an MOU is to have the arrangement in writing so each party is clear on how everything will work.

      You always want to have an "out" clause so that if it's not working for you (or him) you can walk away.
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