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Ongoing SEO in exchange for equity - is it ever done?

by mike719
11 replies
  • SEO
    • |
I have a question... I realize SEO is hard work, time-consuming, and expensive. I've hired many people/firms to do SEO work for me in the past with various results. Do people ever do SEO work for equity rather than flat rate?

What I have now is a couple of web applications that are lacking traffic that I need some solid ongoing SEO for. I was wondering if, instead of paying some large amount of upfront money for a one-time SEO campaign, if anyone does ongoing SEO in exchange for equity in websites.

Before you stop reading and tell me it's a terrible idea, let me emphasize that my websites are actually useful web applications with complex back ends, databases, slick interfaces, etc. They are not your standard low-budget, quickly thrown together bunch of articles + adsense sites looking for SEO to generate traffic and clicks. They are legitimate web applications that just need a user base to start generating real revenue. I spent a ton of time developing these sites, 1 of them in particular.

My problem is that I'm skilled at web development but not so much in marketing. Anyway, I was wondering if anybody ever does things like this, where a web developer and an internet marketer team up on a project where one does the development of a web app and the other does all of the marketing ongoing and somehow split up the profits in some fashion. I'm partially just wondering and partially actually looking to do this if there is a positive response to it.

I'm sure it's done (obviously companies do it), but where/how would I find some way to do this?

PS: If you're wondering why I would want to give up equity instead of a flat rate for SEO, it's twofold:
1. I want an ongoing SEO effort, not a one and done
2. I want someone doing the SEO work to be invested in the success of the company so I can be confident I'll be getting their best work

Thanks!
#equity #exchange #ongoing #seo
  • Profile picture of the author MikeFriedman
    I will be honest. Here is what I do not like about these deals and why I stay away from them. The heavy lifting is really getting traffic. So I'm the one doing the part of the work that is really going to make or break the project. Then people want a 50/50 split.

    No thanks.

    If I really believed in the product and though it was worthwhile I might consider it if I got 80% of the profits or so.
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    • Profile picture of the author mike719
      Originally Posted by MikeFriedman View Post

      I will be honest. Here is what I do not like about these deals and why I stay away from them. The heavy lifting is really getting traffic. So I'm the one doing the part of the work that is really going to make or break the project. Then people want a 50/50 split.

      No thanks.

      If I really believed in the product and though it was worthwhile I might consider it if I got 80% of the profits or so.
      I can see what you are saying if you were doing the SEO for a blog or a site with some simple articles or something. But what I am creating are complex web apps that I've spent months designing and developing. They're not websites I'm quickly throwing up on the Internet and looking to get some SEO for.

      That being said, if someone were to agree to some deal like this without discussing percentages or anything like that, how much traffic could a seasoned SEO expert bring to a new site to make a site successful with ongoing SEO if he had a vested interest in the success of the company as such?
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  • Profile picture of the author Ben West
    The reason I don't do it is this:

    If the website had the potential to make enough money to make my time investment worth it in the end, then the owner would have just taken out a loan to finance SEO and marketing in the first place.

    Whether it is a money investment or a time investment, it is still a risk as to whether it pays off. Why should I risk my time when you won't risk your money?

    As they say, time is money.
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    • Profile picture of the author mike719
      What I am really looking for is a partner. I've long wished I knew someone skilled in seo to team up with on my projects as I am a Web developer who is not very knowledgeable of seo.

      Was hoping to find to someone to team up with, share ideas, I do the development, he/she does the marketing/seo.

      Guess that's impossible since most seo folks seem to think developing Web applications takes zero time and effort while seo is all the real work.
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  • Profile picture of the author yukon
    Banned
    Originally Posted by mike719 View Post

    I have a question... I realize SEO is hard work, time-consuming, and expensive. I've hired many people/firms to do SEO work for me in the past with various results. Do people ever do SEO work for equity rather than flat rate?

    What I have now is a couple of web applications that are lacking traffic that I need some solid ongoing SEO for. I was wondering if, instead of paying some large amount of upfront money for a one-time SEO campaign, if anyone does ongoing SEO in exchange for equity in websites.

    Before you stop reading and tell me it's a terrible idea, let me emphasize that my websites are actually useful web applications with complex back ends, databases, slick interfaces, etc. They are not your standard low-budget, quickly thrown together bunch of articles + adsense sites looking for SEO to generate traffic and clicks. They are legitimate web applications that just need a user base to start generating real revenue. I spent a ton of time developing these sites, 1 of them in particular.

    My problem is that I'm skilled at web development but not so much in marketing. Anyway, I was wondering if anybody ever does things like this, where a web developer and an internet marketer team up on a project where one does the development of a web app and the other does all of the marketing ongoing and somehow split up the profits in some fashion. I'm partially just wondering and partially actually looking to do this if there is a positive response to it.

    I'm sure it's done (obviously companies do it), but where/how would I find some way to do this?

    PS: If you're wondering why I would want to give up equity instead of a flat rate for SEO, it's twofold:
    1. I want an ongoing SEO effort, not a one and done
    2. I want someone doing the SEO work to be invested in the success of the company so I can be confident I'll be getting their best work

    Thanks!
    One thing you might want to consider is setting up an affiliate system to let other folks drive traffic back to your site/product. I have no idea what you're selling but that might be an option.

    This way would be less confusing for everyone involved, affiliates are only payed based on performance (driving buyer traffic back to your site/product).

    In the end you come out the same or better ($$) without setting yourself up for any possible legal issues/disputes by having a partner. You own 100% of what you've built (website/app).
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    • Profile picture of the author danparks
      Originally Posted by yukon View Post

      One thing you might want to consider is setting up an affiliate system to let other folks drive traffic back to your site/product. I have no idea what you're selling but that might be an option.
      This is a good idea (though like yukon says, depends on what you're selling). I did this once in the past and it worked out pretty good. There are free systems that you can add to your site that handle sign-ups and click tracking, client log in to see clicks, etc, and you simply pay out money to affiliates once a month. You need to make it a good incentive for people to link to your site, though - you can't offer a very small payout as few will bother signing up to be affiliates. It's worth it to give a fair slice of profits to affiliates - they're giving you sales you most likely would never had made without them.


      Originally Posted by hipeopo02 View Post

      What you are asking for is for someone to completely believe in your project and not just look at it as another "job" but rather a chance at being part of something great that will be quite lucrative. Nothing's impossible but it is highly unlikely you will find someone experienced who will work for equity in the future but free for now.
      This is true. It's simply too big of a risk to get financially involved with someone you don't know, with no money upfront. Even after looking over your site and deciding it's got potential, the person would probably simply rather steal your idea and set up a similar site and go it alone.
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      • Profile picture of the author mavsfan13
        I've had one successful deal like this and it was with two brothers who I've known for 20+ years. They gave me 10% equity in their HVAC business to handle everything web site related. I did ok for about 2 years but then it ended on somewhat of a sour note. Long story short, I wouldn't do it again ... paying someone a percentage when there's no money coming in sounds so easy for both parties when they agree to it. But once the money starts coming in and the business has all the leverage ... people tend to get stingy. thanks but no thanks.
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  • Profile picture of the author Tiiberiuss
    I did a few "JV" partnerships like this in the past and most of them went terribly wrong. It took me months to break even. I was getting 70% from the "profits" by the way.

    The problem is that proper SEO has big upfront investment requirements and 70% from 0 is still 0.
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  • Profile picture of the author alvinchua91
    I don't think it's a good idea for you to source partners this way on WF.

    You're looking for a partner / co-founder and not an SEO services provider, you'll be better off looking for them at entrepreneurship groups e.t.c.. or your friends.
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  • Profile picture of the author hipeopo02
    Originally Posted by mike719 View Post

    2. I want someone doing the SEO work to be invested in the success of the company so I can be confident I'll be getting their best work

    What you are asking for is for someone to completely believe in your project and not just look at it as another "job" but rather a chance at being part of something great that will be quite lucrative.

    I have yet to experience that feeling from any independent employer I have done work for.

    Nothing's impossible but it is highly unlikely you will find someone experienced who will work for equity in the future but free for now.
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  • Profile picture of the author davidweb09
    You need to search any SEO services provider having good reviews about him.
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