Would you split the profits 50/50?

If you want an equal partnership it should be split 50-50 unless you're putting in unequal amounts to start the company. That being said, I would make sure to speak with a lawyer about writing up a contract in such a way that if one person isn't pulling their weight they can be cut off or lose some percentage.

I'd split profits if it was in writing (and legally binding) as well as the amount invested was equally split between time and/or money.

I'm sure there's plenty of "business partner screwed me" horror stories out there for you to see why this should be done...

~Dexx

If all things are equal as far as the work load goes, I would just take out the difference in your initial investments once the profit comes in. I would for sure get all of the details worked out before moving forward though.

I don't believe in partnerships and 50/50.

My first was my best friend. It nearly ruined our friendship. Not only did I end up going out to get clients, and do the majority of the work, he wanted to over charge and nickel and dime my clients and nearly ruined several projects. Only years later did he acknowledge that he was wrong and we are still friends.

My second partner, I came up with the market, the company and website name and the marketing plan. I waited 8 months for her to do the website, (oh if only I knew then what I know now!). She told me we should split things 50/50. But some of my skills pulled more per job. I didn't think it

I believe in JVs. I have 3 companies owned by friends who I have JVs with. We will do promotions together and make an agreement on price for that particular campaign and we will decide how much is going to be spent and who will pay for what and any profits come after the spender recoups their cost. This formula has allowed me to work with my friends and stay friends.

Are you set up as a legit company? If so you should already have some idea of the budget costs for your marketing, you both should know how much is going in the pot and of course the business doesn't post a profit until you've covered expenses and costs.

If you aren't set up as a LLC or SCorp or even just as a legit small business, I suggest you do so ASAP and in the process sort out responsibilities and financial payouts.

My question is this, and this is the one I had to ask myself. Why do you need a partner?

Even though I would not do a 50/50 business relationship with one of my friends, I do admire the fact that you are doing it yourself. None of my friends have a CLUE about what I am doing!

First, I think you should definitely make this partnership legally binding. Weather is that is setting up a LLC or some other form of business entity. Second, if you want to keep everything 50/50 to be fair, then you should both put in the exact same amount on this mailing to test this strategy so that there will be no hard feeling if one pulls better than the other. Lastly, if you truly have a company set up then a percentage of profits should go back into the company so that you'll have money for other campaigns and expenses. Pulling out profits immediately is a limiting how fast you can grow.

Either way you should definitely have something set in stone that you both 100% agree on before you do anything at all.

Hope that helps!

Sean

If you plan on being a partnership, you need a lagally binding contract. You also need to sit down and discuss a budget. This is very important. If you each have little overhead (ex you work from home) then the only expense might be marketing.

Find a number and each contribute to that. Each of you find the niches you want to target but equally participate in the marketing, at least financially.

ALthough it can be fun to enter into a partnership with a friend, they can sometimes turn out messy if the proper communication has not been laid out at the beginning. At lease get it on paper and sign it. If you can't afford a lawyer, create a written contract for now.

Good luck!