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JV's? CONTRACTS? David Preston's Stupidly Cash COw

by john_luckfield
16 replies
Recently I was thinking about a few marketers that have had a few RUN INS with

the legalities side of OUR Arena.

You might be thinking....................

""How does this tie into David Preston's Cash Cow Thread?""



This will all make SENSE after reading on. Trust me. And This is not going to be

my take on David Preston's Thread either. He's done an Awesome Job on that

and there are various other threads that have gone into much detail already.



Having been in Internet Marketing for a bit, it's never really crossed my mind of the

importance of CONTRACTS? Recently while making a Joint Venture with a fairly

known Health Website and Health author the thought crossed my mind. (due to

confidentiality I won't mention their name).

Should I use contracts to protect myself legal? When should I start using contracts?

Are they really necessary? and WHo uses them? How much damage am I leaving myself

open to?


Then AGAIN after reading David Preston's Stupidly Simple Cash Cow" a while back the thought came into my mind again. Awesome Job by the way David. A lot of gold nuggets and gems.

HOW many internet marketers use contracts?

When dealing with Business Owners and individuals alike how many of US are really protecting ourselves?

Why does this matter to you?

People don't always follow through with their word and may not always remember what
your suppose follow through was, which causes?

1) Such person to want compensation for your supposed lack of follow through

2) Time and Energy on your part as well as stress to have to deal with the matter

In closing I would like to thank those reading and please feel free to SHARE in your EXPERIENCE what has worked best for you and also share the scenerio or convey this through a story it would be VERY VERY much APPRECIATED.

Take Care and God Bless,

JP
#cash #contracts #cow #david #preston #stupidly
  • Profile picture of the author dorothydot
    So far, knock wood, I've not had a huge issue with this. That's because I use emails as contracts. We talk over and discuss and agree, then I send the client an email detailing our agreement. The client replies and, once we accept terms via email (by this time, usually all that's needed is the original detailed email), that's the contract.

    If changes are needed as the work progresses, again I use email to document the changes.

    It's my understanding that emails are considered legal documents if push comes to shove. But like I said, I haven't had to test this yet.

    Hope this helps,
    Dot
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    • Profile picture of the author john_luckfield
      Originally Posted by dorothydot View Post

      So far, knock wood, I've not had a huge issue with this. That's because I use emails as contracts. We talk over and discuss and agree, then I send the client an email detailing our agreement. The client replies and, once we accept terms via email (by this time, usually all that's needed is the original detailed email), that's the contract.

      If changes are needed as the work progresses, again I use email to document the changes.

      It's my understanding that emails are considered legal documents if push comes to shove. But like I said, I haven't had to test this yet.

      Hope this helps,
      Dot
      Thank you dorothy. THis is very important as having these emails in a safe place for back up are of huge IMPORTANCE. THank you for sharing. YOu have shared a bit and I was wondering if you Could you go into a little more details or share an example of the types of agreements that you have come across in your VENTURES. Thank you again for taking some of your time to respond.
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  • Profile picture of the author GoGetta
    Yes contracts and having something in black and white are essential. I send over an email on purchse of mys ervices outlining what I will do and then follow that with a posted welcome letter and outline again of what I will do!

    One other thing though, insurance is essential! If you don't have insurance, dive into this at your own risk!!!

    GoGetta
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    • Profile picture of the author john_luckfield
      Originally Posted by GoGetta View Post

      Yes contracts and having something in black and white are essential. I send over an email on purchse of mys ervices outlining what I will do and then follow that with a posted welcome letter and outline again of what I will do!

      One other thing though, insurance is essential! If you don't have insurance, dive into this at your own risk!!!

      GoGetta
      Definitely Very much Appreciated. Could you share some suggestions with regards into insurance you use. Thank you again for your time GoGetta
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      • Profile picture of the author innocent07
        Banned
        What is all this 'cash cow' stuff?


        What does Cash cow mean? :confused:
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        • Profile picture of the author Lloyd Buchinski
          Originally Posted by innocent07 View Post

          What is all this 'cash cow' stuff?
          The term comes from a thread David Preston started, titled "Here's a stupidly simple cash cow and it's free." Unfortunately it was deleted and you won't be able to find it with a forum search.

          It was about setting up websites for local small businesses, and the money that can be made there.

          Andrew Cavanagh (sp?) covers a similar topic with titles like "offline gold" and that term has come to mean about the same thing at the WF. If you see a thread with either of those anywhere in the title that is what it is about.

          best wishes, lloyd
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  • Profile picture of the author GoGetta
    I wouldn't be able to tell you what insurance to get because it depends on what you are doing and offering. Your best bet is to get in contact with a business insurance broker and ask them!

    GoGetta
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    • Profile picture of the author john_luckfield
      Originally Posted by GoGetta View Post

      I wouldn't be able to tell you what insurance to get because it depends on what you are doing and offering. Your best bet is to get in contact with a business insurance broker and ask them!

      GoGetta
      Hey GoGetta,

      Thanks you again for all your help. Definitely looking into this.
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  • Profile picture of the author gxd5
    Regarding contracts, I have to recommend echosign. ABSOLUTE GOLD. I execute ALL my contracts via echosign now, and turnaround is instant.

    If you are an IM and not executing contracts with echosign, you are shooting yourself in the foot.
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  • Profile picture of the author Warriorcoach1
    I highly recommend contracts as a way of protecting everyone.

    Yes, it's true most people I've dealt with are great, but even "great" people can easily let you down. Here's an example...

    My start was with organizing a multi-partner JV, specifically a 14 week teleseminar series where everyone was to promote to their lists. I got some really big names here. But about 6 people never promoted, hurting not only me but their fellow presenters as well. It's a breach of trust.

    Guess what - I didn't have a contract to hold them to. Now I have contracts for things like this and people who don't promote get booted.

    Of course, there may be small, one-off deals for which a contract is overkill, but that's something you have to intuit for yourself.

    You can find online templates for "plain language" contracts - they're short and sweet and have the virtue of being comprehensible;-)

    Bottom line? Use contracts most of the time!
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    • Profile picture of the author JohnMcCabe
      Originally Posted by GoGetta View Post

      Yes contracts and having something in black and white are essential. I send over an email on purchse of mys ervices outlining what I will do and then follow that with a posted welcome letter and outline again of what I will do!

      One other thing though, insurance is essential! If you don't have insurance, dive into this at your own risk!!!

      GoGetta
      Absolutely agree. I don't know what it's like on your side of the pond, but here in Florida, it they banned ads from attorneys and lawyer referral services, half the programs on TV would have to be canceled.

      Originally Posted by john_luckfield View Post

      Definitely Very much Appreciated. Could you share some suggestions with regards into insurance you use. Thank you again for your time GoGetta
      The first thing you need to check out is "Errors and Omissions" insurance. If you screw up and get sued, or someone says you screwed up and sues, E&O insurance covers you for your defense and for any judgment up to your policy limit.

      If you have actual employees, you probably need Workman's Compensation coverage. Check with your state or a good broker to be sure.

      It's not a bad idea to investigate an umbrella policy - preferably a big one. These are relatively cheap, and pick up where your other policies leave off. Say you have $1 million E&O, and a $5 million umbrella. Someone sues you for $2.5 million and wins. Your E&O pays the first million and your umbrella covers the rest.

      Disclaimer: I'm not an insurance pro, even though I've held licenses a couple of times in my life. I absorbed most of what I know from my father, who sold commercial insurance for half of his working life, as well as from my own layman's research.

      In simple terms, I think this is right, but don't bet your ass on it. Get competent professional, local advice on your specific situation.
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  • Profile picture of the author Mark Riddle
    Contracts are a must, even but remember it doesn't mean it has to be a formal contract.

    A simple plain English (or what ever language) contract is all that is needed.

    If they are not going to follow a simple contract, they aren't going to follow a complex one either.

    If you are doing this on a regular basis you may want to have errors and omission insurance. Only if you are dealing with some really big numbers.

    It is simply cheaper to allow someone to cancel a contract that you can't cancel then to spend time, money and energy to enforce it.

    Mark Riddle
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  • Profile picture of the author artwebster
    Contracts are two way and while they can protect you, they can also protect the customer - especially if the contract is loosely worded, omits a particular set of circumstances or if changes in circumstances require an adjustment to the contract that either you or the customer is not prepared to accept..

    Far better to be an ad hoc supplier where a customers signs an order form for the precise service you are offering or accepts an invoice for the precise work you have done. In this way you are protected against customers who feel that your contract gives them the right to contact you whenever they feel like it for whatever reason and also gives the customer details of what he is paying for - each time he pays.
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    • Profile picture of the author john_luckfield
      Originally Posted by artwebster View Post

      Contracts are two way and while they can protect you, they can also protect the customer - especially if the contract is loosely worded, omits a particular set of circumstances or if changes in circumstances require an adjustment to the contract that either you or the customer is not prepared to accept..

      Far better to be an ad hoc supplier where a customers signs an order form for the precise service you are offering or accepts an invoice for the precise work you have done. In this way you are protected against customers who feel that your contract gives them the right to contact you whenever they feel like it for whatever reason and also gives the customer details of what he is paying for - each time he pays.
      Very well thought out that. Put the focus on the service and they the customer just signing an order form.

      Good Stuff So don't even talk or show contract type literature. Did I get that right?

      And thank you for that Suggestion.
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  • Profile picture of the author john_luckfield
    Again THANK YOU EVERYONE for all of the Awesome Suggestions as well as information regarding CONTRACTS.

    There are definitely alot of gems here. Please Continue to Feel free those of YOU reading that haven't posted, but may have some HELPFUL information to go ahead and DO SHARE.

    TAKE CARe and GOD Bless,

    JP

    P.S. Especially with alot of things going on IT is definitely Smart to start practicing PREVENTIVE protocal to protect yourself as well as your hard owned MONEY if you HAVEN't done so already and to CONTINUE if you are.
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  • Profile picture of the author Maria Gudelis
    JP - what is great about contracts is to include what is called a

    Scope of Work

    Where it is defined clearly what will be done (what is in scope) and what won't be done (what is not in scope)...that way - when some clients (and this happens sooo much) want's 'just one more thing....or can you add this?

    You have what is called 'scope creep' and you can then advise your client that is not in the original scope of the contract and I'd be glad to help you with that, just let me send over an cost estimate for that for you to approve and we can get started on that....

    Also - in addition to insurance, once you do start making money with your offline business, seriously consider operating out of an entity (LLC , C corp, S corp ) - Legal Disclaimer - I am not a lawyer/attorney and please do not take this as 'legal advice' and consult your attorney for legal advice....by operating in an entity - not only do you save on taxes...you provide a layer of asset protection (as long as you keep your accounting correct and don't 'comingle' funds from the company acct. and your personal acct)...

    Hope that helped!

    JVs - I also clearly outline the roles and responsibilities of JV's - who does what, gets what percentage etc. - there have been too many times I've been burned (and lost friends) when I didn't do that - it is amazing how easy one can forget what was agreed to once money gets involved.....


    other legal docs - I always execute a NDA (non -disclosure ) with my clients to show that I know they are sharing sensitive info with me (their client database, trade secrets potentially) and that they are save with me...adds a touch of professionalism to them that wows them and separates you from the rest....
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