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Need Advice On jointventuring with a client.

by Jimnopks
1 replies
I listened to Maria Gudlis interview David Chambliss about joint venturing with clients twice and still have some questions about the subject.

I made a proposal with a partnership that makes vinyl banners. I said I would reduce my retainer from $9000 to $3000 and take a 3rd of the profits.

He wanted to know how he would keep track of how much I was owed.

He said the website has an 800# to track prospects, but how does he physically keep track of how much he owes me without going into a lot of extra recordkeeping?

Has anyone cracked the code to making this easy for the owner?

Has anyone done this enough times that they feel like a pro yet?

Thanks,

Jim Stiner
#advice #client #jointventuring
  • Profile picture of the author MacFreddie
    Banned
    33% is really high. The norm is 10-15% plus an Upfront fee.

    It sounds like this guy is a small fish. Is the 9k total for 12 months? I would go with Half now and spread the rest over the next 6 months.

    However, to answer your question, you always take a % of the GROSS. Hollywood never shows a profit on ANY movie EVAR made, that is why Tom Cruise gets 20% of the Gross, no matter what. It's typical for Cruise to make 75M per film. Same with Will Smith.

    It can get tricky. You can take a % over the increase in sales from the previous 12 months, or go for a smaller % of the total gross. Never go NET. A client can spend a huge amount on capital expenditures, infrastructure, etc... so YOU never get any monies.

    Have in your agreement that your % is based upon Audited CPA statements. Not some schmuck bookkeeper or accountant.

    For such a small client, anything less than 30k - 50k too me is small. I would NOT do a joint agreement. Pay me straight up and work the payments over time.

    Hope this helps,

    Mac
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