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Would You Do This? Free Work Up Front for Long-term Pay?

by MsMotivation1
8 replies
Friday, I was made an offer to work with a local business owner who wants to put together some Internet marketing packages for his industry - which includes web design, lead generation, SEO, and social media - and then sell them.

He doesn't have the time to do it, but he knows a LOT about internet marketing. The plan he has put together is actually very good and I know it will work.

He wants to put together some example websites, get them ranking on page 1, and then use those as proof of what we can do for them.

We will start building these sites this week and hopefully have everything tested and ironed out by mid-January so we can start selling the packages to others.

These packages will sell at $2k and up and he's offering me 50% of the profits.

He will do the selling because he has so many contacts in the industry and my team will handle customizing the packages as they are purchased.

This sounds like a very good plan in the long run because the selling is already done for me. But it's kind of scary because I'm not getting paid up front.

I told him I needed time to think about it and will get back to him... I wanted to check to see if any of you have ever done any deals like this? Or if you have any advice?

Thanks!
#free #front #longterm #pay #work
  • Profile picture of the author redcell1
    The example websites - who's websites are those and what do you plan to do with them ? -Sell them to buyer, or are they client's who get the work at a discount ?

    My next question is this : What is your profit margin ? We know you get half but does that cover your expenses and leaves money left over?

    Do you and this local business owner know each other well? Do you two get along or is it just business ?

    Can he really sell ? - not to be rude but you know you can do the work but what happens if you do the work and his skills are not that great. (Not to sound negative but you do have to look at all the outcomes)

    I ask because I have a similiar arrangement that I am putting into effect this month and I have to say that my partner and I don't see eye to eye on certain things. For now I'm just leaving it alone but it might come back to bite me in the rear if some thing goes wrong.
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    Just here to see the shenanigans.

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  • Profile picture of the author StephanieMojica
    I and countless other people have done this and were basically used.

    It's so easy for people to take advantage of others by holding out the "higher pay later" card. I strongly encourage people to not work for free whenever possible. At least work out a modest payout and/or barter (exchange) of services.

    In most cases, the business owner really just wants something for nothing and will exploit your dreams to try to get you to "prove yourself."

    Stephanie
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  • Profile picture of the author cma01
    If you have control of the web sites and what you are building is along the lines of a site rental model, then it could work.

    If you are doing it for *his* business to "show what you can do," I would say no. Unless you really need something for your portfolio.
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  • Profile picture of the author MsMotivation1
    OK, thanks guys.... well, I think I'm going to pass because I really don't have time to do anything for free and take a chance of not getting anything out of the deal.

    He originally said that the "example" websites would be his but I expressed to him that I wasn't comfortable with that idea and that we could do this on sites that I personally own.

    Because if the packages don't sell, he will then have some really good ranking sites and raking in clients while I'm left with nothing.

    However, maybe it'll be worth it for my own sites... that way, he gets nothing upfront, but I get to fall back on my sites and sell them, rent them, or sell the leads.

    Decisions... decisions!

    Thanks
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    • Profile picture of the author redcell1
      Originally Posted by MsMotivation1 View Post

      OK, thanks guys.... well, I think I'm going to pass because I really don't have time to do anything for free and take a chance of not getting anything out of the deal.

      He originally said that the "example" websites would be his but I expressed to him that I wasn't comfortable with that idea and that we could do this on sites that I personally own.
      RED FLAG RIGHT HERE.

      Because if the packages don't sell, he will then have some really good ranking sites and raking in clients while I'm left with nothing.

      However, maybe it'll be worth it for my own sites... that way, he gets nothing upfront, but I get to fall back on my sites and sell them, rent them, or sell the leads.

      Decisions... decisions!

      Thanks
      For the 2nd part about having a fall back that is very true. My only thing is that will competition purchase these sites/rent/buy the leads?
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      Just here to see the shenanigans.

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  • Profile picture of the author Kay King
    He's proposing a JV or a partnership - commonly done. He has suggested terms that he is comfortable with. If you are interested in a partnership you can negotiate adjustments to the terms.

    Much depends on how well you know this person - whether you trust his business acumen and whether you are most comfortable working as a partner or as a for-hire outsourcer.

    How busy are you with your business? Do you have time to do this? Clearly, you are worried about "risk" involved but it seems the only risk is perhaps loss of some work hours if the plan doesn't work. Worrying about losing money on sites that haven't been built is finding excuses.

    I think you are going to say "no" and suggest he pay you for work as it is done. Understand that may mean he finds someone else to partner with or someone else to do the work.

    This could be a great opportunity or a waste of time. That's the risk and you have to decide.

    kay
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  • Profile picture of the author akazo
    Sounds like you know the answer. There is nothing wrong with this model and I do lots of upfront work without immediate pay. But I _ALWAYS_ own the domain... and they are always fairly generic so I can leverage them if I have to... it's easy to transfer a domain later.
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