Need Your Help - What's a Fair Split?

8 replies
Hi Everyone,

I need help, if I may ask the pros here.

I am talking to someone who wants a list I have been creating (given the unusual topic that I roam in) and he offered to do a split if I do the work and he can sell my list to his database. He could technically speaking hire someone to create the list himself, which he has done in the past, but the list is volatile and needs frequent upkeeping (which he's not interested in doing).

He would use this list as a stand-alone product and also add it to his package.
  • What is a fair split for him and I for the list to be sold as a stand-alone product? (50/50, 40/60, etc.)
  • What if it's a part of his other products (with which have nothing to do)? (30/70, 20/80, etc.)
  • What's to prevent him from ending the 'deal' after he has sold it one time? He could easily then hire someone to keep the list up himself.
  • Would doing a deal with him prevent me from selling the list myself?
Am new to this and would love your feedback and experiences.
#affiliate #fair #joint venture split #split
  • Profile picture of the author Daniel Thomas
    A. Once you hand over any info with a legally binding contract, you're in a bind.
    B. If you can't sign it, whitehat, don't sign a % deal, do a 1 time fee, with residuals, ones that you won't mind losing and will reflect 1% of the 1 time fee over time.
    C. No fair split exists, it's a negotiation.
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  • Profile picture of the author zeroaffiliate
    First, I wouldn't pass or sell the list which i have built over to anyone. It's like destroying your own money pot.

    Instead, i will offer solo-ads services, where i can blast a email to my list for a fee. I could also get a commission from his products for each sale made. Just make sure you have a good tracker to track the amount of visitors you send to his product as well as the conversions made.
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    • Profile picture of the author Core Freedom
      Thank you, TomGreen and ZeroAffiliate, hadn't thought of this!

      I would have screwed this up big time. Here is a bit more information.

      I have no list I can sell this information to that I am compiling. That's not my business. I am merely creating the list to get my work out there. The person who wants the list, this is his business, he has other such lists but not in my field (spirituality and metaphysics). And his list is huge.

      He said he could easily sell 100-150 with his first email, the list would sell between $300 and $400. So far he wants to give me 30%. When he speaks in front of a large audience, he usually sells another 20-50 several times a year, he would ad my list as part of his overall package, which he sells for around $1000. The price of his overall package would not increase in value because he ads my list, but he would get more buyers because of my list.

      I was about to hand him over, literally, my list, and just go on faith that he would send me a check every month for how many ever lists he sells. But we have no written agreement, yet, and I didn't see an exit strategy or even for him a reason to continue paying me my portion once he has the list. It would be easy for him to take my spreadsheet and hire someone 2-3 times a year to keep the list up, while ending my agreement and not paying me anything.

      Does this make sense?

      So Tom, if he could sell 100 at $300 right off the bat, that's $30,000, of which I would get $9,000 (30%). I would continue getting 30% of how many ever he sells ongoing (provided he doesn't cut me out of the deal once he has the list).

      The thing is, this list is not my business, my business is totally different, and I don't want to get involved in having to sell a list. He on the other hand, is THE-GO-TO-GUY for this type of list of anyone in the U.S., he is well known, has the connections, the database, the affiliates, the speaking opportunities, because this list selling is what he does.

      The list exists in Excel. I wouldn't even know how else to deliver this list to anyone without actually being able to protect the list from being forwarded on. It would be very easy to do that for anyone, a client or him.

      Will give this some more thought but I agree, I don't think I should blindly hand over the entire list (did that before, cost me a few millions). :-(

      Thank you!
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    • Profile picture of the author Core Freedom
      Oh, and forgot to ask you both. I don't have an affiliate program set up for this list. Given that it would be around $300-$400, it will not fit with Clickbank. Can you recommend another program that I can put on my website that could handle the affiliate technicalities? Since he has affiliates of his lists, it would have to also include 2nd tier affiliate tracking and payouts.
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  • Profile picture of the author Greedy
    A. Once you hand over any info with a legally binding contract, you're in a bind.
    B. If you can't sign it, whitehat, don't sign a % deal, do a 1 time fee, with residuals, ones that you won't mind losing and will reflect 1% of the 1 time fee over time.
    C. No fair split exists, it's a negotiation.
    My thoughts were the same.

    Keep everything as short term as possible in case things don't work out.

    Agree for 2 weeks only, to see if it works.
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  • Profile picture of the author Daniel Thomas
    You could do a partial split, to see if he can prove the income is real. Continue dolling out leads.
    I always think that the high conversion rates and income promised may be too good.

    Lists of leads are never sold for a %, always for a flat fee. If he think he can convert X, he should pay that X for the list, or X/2 for half of the list, etc.

    This way, there's no option of a scam. Also, simply try to find someone else to monetize the list.
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  • Profile picture of the author Core Freedom
    Thank you, Tom. That was my plan after reading all of your great posts. I don't want to get involved in list management, it's not my business, but at the same time the list seems to be worth a nice penny too.

    I will post another thread to find out how to protect an Excel spreadsheet that sells for a few hundred bucks and can be sold via affiliates.

    Thank you all!
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  • Profile picture of the author Core Freedom
    Not sure I should start another thread or continue here.

    The continuation of this story looks like there may be interest in from the other party in buying the list outright with a small ongoing royalty. As you, TomGreen, suggested.

    What I don't know is "how much" is a list worth? Remember that this is not a list of buyers. This is a list of 800 industry contacts that are valuable to people of a specific industry who are looking for this information.

    The list is worth approximately between $300 and $500 per sale.

    If you owned the intellectual property to such a list, what would you sell the master rights for and what would you want for ongoing royalties?

    Would love your feedback. :-)
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