How to make a partnership secure. A free post-guide by me!!!

INTRODUCTION.

For years people have jumped into a partnership. You want to work with a team, becuase its more profitable and gives you a better change to become part of something huge and profitable. But its so FREAKIN unsecure. As for myself I remember talking to over 50 people because I was interested to start an online business together. I chickened out everytime. Sometimes it was because the person rubbed me the wrong way, sometimes it was becuase I thought they seem too smart to be honest, and other times I just felt a feeling of general "RISK" that stopped me.
Trust is the main problem with partnerships these days. You feel like it may be a little dangerous to pour your skills on something that could be destroyed by the other dude. For years Webmasters have been trying to find a team or wished they could find a secure way to do it.

The truth is there is a secure way. A lot of this is a little mind control over yourself and the other part is a professional contract that will leave no surprises. Not a contract of rules, but a contract of method on how the partnership will go. This is stop surprises involved.

Please be advised that a 3 to 6 person partnership is far more secure than a 2 person venture. It’s hard to explain why now, but you’ll understand once the topic is finished.


FEAR NOT THAT YOU ARE NOT IN FULL CONTROL.

Facts for a team of you and one other dude/girl.
If you are investing time and skills, and not money, then you have nothing to worry about because if they have control of the profits and refuse to pay your share they will be kicking themselves in the nuts/box because your work and efforts will be gone. If you truly are worth 50% then they basically just blew away the chance of something good. The person with the most skills should never have access to profits. The lesser person should control the cash. If you and your partner are getting a profit increase every month then your partner should be shot and arresting for being stupid if he/she actually ditches you. Heck, he/she just blew something great. This is very unlikely. I realize that greed comes into effect of everyone, but common sense will overwhelm the other party. For the most part, people enjoy the fact that they have support from another. Don’t forget that chances are you both are in the same boat and are thinking the same thing. After a month or two you both will know if it’s going to work out. This is why you shouldn’t rush into things.

If you guys/girls are not making a good profit and the partner bails don’t even think it is because partnerships don’t work. It’s because the IDEA and website plan didn’t work out. Its best that one of you closed the deal before it got expensive.


If you are involving your money then you need to get a secure contract in order. I know you are thing "oh, a sheet of paper won't do anything", but it will. In this sheet of paper you add as much information that is possible so that there won't be any surprised with you and your partner.


SECURITY. YOU GOTTA HAVE IT.

Everyone worries about this. It’s the main force that is stopping people from joining a team to get something going. I can relate because I don’t trust too many people. There is a solution that will bring this risk down big-time. Please understand that just because you can’t get to the other partners house and burn it down, it doesn’t mean that it has to be risky. Near the end of this topic I will be mentioning a solid fool proof contract.


LITTLE THINGS THAT WILL HELP THE TRUST.

If you are going to be starting out a website then make it fair. Divide the adminship so that it takes two for the site to work out and if one person leaves then it’s done. Not many will want to just walk away from something good. Basically if one of you turns sour then it'll mean you both will pay the price of a wrecked site which is ok because that’s the way it’s supposed to be. “All together or not at all”.
How to do this?


YOU NEED TO SCATTER THE RIGHTS/ACCESS/PERMISSIONS.

-One person has the domain only, and the other person has submitted the url to google, and can remove it from the search engine.
-One person has hosting rights only
-One person with the admin control
-One person with FTP rights.
-One person has got adsense, the other CJ.com(or something like that)

as you can see there are holes here. The person could walk with the pr7 domain and the other just has a site. The person would be a moron because a site with a pr 7 defiantly would be pulling in the money and the rank will going down quick on whatever the dude puts on there. This isn’t a perfect plan but it one of many things you can do break the absolute trust thing. It also splits a lot of efforts and makes you and the other dude(s) feel like you’re a special part of the partnership. You both will know that it's not worth taking out the other because their will be a loss if you guys split up.



HOW TO BUILD A TEAM PARTNERSHIP.

Please pay attention because this is a very aggressive, but amazing contract setup to secure an honest and perfectly functional group or partners. It’s a little tricky but worth the effort because you all can follow this business plan for years.
As an Example: Let’s say that you are in 4 person partnership and each of you put in $200. (=$800)


1. In the beginning all 4 people must type out a resume (sort of) of their online experience.
Page 1: The person must type out their name, mailing address, city, postal code, I photo pasted of their Drivers License, and any proof possible to show that they are who they say they are. Putting a Birth Certificate, Registration, HealthCard, etc would help to prove it as well. (If the person won’t disclose this information than obviously they aren’t ready to be a team)
Page 2: The person must type in paragraph form much as possible regarding the history of the skills they have online, how they got them, methods they go by, previous sites, etc. In other words, they will talk about their past on their computer and what they did as well as brag about tricks and skills they perform or have done before.
Page 3: In –point forum a very simple list of their skills. EXAMPLE:
-Intermediate with SQL, PHP, HTML, JAVASCRIPT, STYLE-SHEET
-Professional at Photoshop with Graphics, Gfx, Photo restoring, Photo manipulation, etc.
-Intermediate in Adsense Optimization
-Basic level at getting a higher PR
-Intermediate at link building, traffic building, and other thing regarding SEO
-Basic Website at analysis of website stats
-Professional Forum member (power poster)
Page 4 (optional): In the last page of this resume the person now has a chance to freely talk about the partnership. They can talk about idea’s they would like to mention about it, or/and talk about how they are feeling about it, and how much time and effort they want to put in it. Also they get a chance to talk about what they hope out of the others. It does not need to be a big huge professional write up. It should be something like a personal journal entry.

You get the point now. After this each of you get a copy of this and now you know a heck of a lot about the other guys. You know what they are probably going to do to promote the adventure you guys are about to partake in. Also you have the chance to see if something just isn’t right about someone and can consider if it is going to be a problem and back out before it’s too late.


THE PERFECT PARTNERSHIP IS ONE WHERE YOU CAN BE KICKED OUT OF.

If this partnership is going to work then you need to be able to kick each other out of the partnership. SERIOUSLY, I’m not kidding. If you don’t have this with a contract then there WILL be problems. This is a very professional contract which was originally created by me. It has yet to be known to be used, but I’m sure it’s perfect. It was originally designed for a Transport trailer company I was working with which has 8 investors, but the company had a major problem with the hitches coming loose. There was a major recall, people got sued, someone died, the company tanked, and I took off with a percentage. Anyway, I’m going out of topic now. Back to this perfect plan for a team of 4.


IN THE CONTRACT.

-There will be Semi-weekly, weekly, or monthly meeting with all members of the partnership. This will be agreed upon before launch of the online business. The purpose of the meetings is for general peer-to-peer talking, discussing the present and future plans of the site, profit releasing and or anything that goes with it. It’s also useful for when its payday. The person in charge of the paying can offer screenshots of the profit and confirm when people will receive it, etc. It is very important that there is sets dates to the meetings. Having meetings like this will increase your chances of success by a 60%. This is a proven statistic for major manufacturing companies as well as corporations owned by several parties/shareholders/investors.

-All investments must all be absolutely even and must be agreed upon “before” a launch of the online business. If someone wishes to put in more just for themselves then they can agree to do so before the launch but still on money cannot be used against the others as a “more of a share holder”. The reason for this is it gets complicated because profits would have to be calculated before given out.
-If someone happens to buy s banner spot, advertising or anything else for the site by themselves without asking then it is considered a donation. This person cannot use it against the others later. This is considered not a good way to do things either. All things should be discussed in the meetings before. That person should ask if it’s ok first to break the risk of a bad decision.

-A partner does reserve the right to sue if this contract has been breached. This should be written in the contract to avoid a situation were one person tries to “OUT FOX” the team without any risk of consequences.

-IF an NDA is necessary then be sure to have this enclosed with the contract. NDA means “Non-Discloser-agreement”. This is a legal agreement where all parties agree to not mention details of the business or direct details of the partnership to people outside of the partnership. A NDA is very secure for making sure that the sites’ secrets are hidden. If you can prove that someone in the partnership has been revealing information outside then you could take it to any lawyer, then BAM, Its Bad news for them. (They should’ve have signed it, if they weren’t going to follow it



THE BUYOUT VOTING SYSTEM.

This is a very important part of a partnership. This ensures a fair way out for yourself as well as taking out an unrespectable party member. This business plan is not for a 2 person partnership. This is recommended for a 3 to 6 person team. You may find this part to be a little mean, but it makes things run smooth overall. You and your team can use this method as far as 5 years into the online business. It even works out if there is a leader or someone who is initially in charge. The truth is you need the ability to kick others out of the business because it keeps you motivated to do your part, as well as offers security if someone isn’t good enough for the business.

The buyout/vote out contract system
(An example that’s good is if 4 people invested $200 each)


1. If there is a leader (original creator), he/she can be bought out of the company for 15X the current monthly profit. In the contract you have to set a few ground rules. There can be no buyouts in less than 6 months from the beginning of the launch. In the contract you’ll have to put in the leader if there is one. A good example of someone that really qualifies as a leader would be if a person already has the website, domain and idea or others are not starting up a project, but joining it. They could do the site without you, but preferred a team on the project. This person isn’t the boss. It’s just a matter of their value for another partner purchasing them out is a little more money to make it fair because they forked out more in the beginning of the online business. In simple words anyone can buy someone’s part in the partnership. They are not allowed to buy a portion of them, though. It has to be full buyout. There doesn’t need to really be a reason as well. Since it is such a high price the person being bought out is not really losing. The buyer can be one person which means they will own his/her part of the profit. It does not make this person powerful or in charge. Also, all three others can come to an agreement and split of cost to take out this person in which everything will be even. The person bought out must take their cash and walk. No complaining, no crying, just walk. There does not need to be a reason given or anything but the money. This is not a matter of personal grudge. It’s a system of business to ensure the survival of a business. Think of it as the sitcom “Survival” on TV. If you are not good you can be voted away from the island, however there is the possibility that you’ll be kicked off anyway if you are doing your part. You will not walk away broke. You will have made a lot of money from the break, and can move on to another project with a lot of money.
2. Partners who are not the leader can be bought out in the exact same way, but their buyout price is his full investment in total (through the months) and an additional 10X the current monthly revenue.
3. Since the monthly/weekly meetings have already been agreed in the contract each partner is bonded by being at them. If one investor/partner seems to be missing every meeting then they have the risk to be bought out by the team. In the contract you need to set how many times in a year or quarter the person has to miss before they are in this risk. Let’s say that the agreement was for 1 meeting on Thursday 6:00pm EST for 1 hour+. In the contract you all agreed on this time initially and you all agreed that missing 3 meeting (or being late each time by more than 15min) out of 8 in two months will put you at risk. Now let’s say its 6 months later and it seems that “Little Joey” isn’t very motivated to these meetings and doesn’t bother to go to them half of the time. Once he has reached 3 within a two month span then he is at risk. This means that the other partners can buy him out, but this is different. “Little Joey” does not receive 10X the monthly revenue. Joey only will receive 4X the monthly profit of the business. He will walk away with not much in his hand. The other partners have lost a useless unmotivated guy who’s just in the way taking a chunk of profits and it didn’t cost them much.
4. Upon the transaction of control and money the partnership should be obliged to use a “middle man”. There are major companies that will take a large amount of money for a group and hold it until everyone is happy, then give it up once everything is complete. You wouldn’t want to buy someone out who is the only person who has access to the domain and give them the money. It’s much better to give the Coin to a company that will hold it until you tell them to give it up. Some of these companies actually will require the full story and ensure the transaction has been complete before throwing the money at the concluded person.


THIS IS THE END OF MY BUSINESS PLAN.

Now you have the knowledge to write an excellent fool proof contract to live by. Since every online partnership is different your contract will never be the same. You can add, modify, and make a few changes here and there. Once you all agree on the whole thing after a bunch of talking you can start the next eBay together. This contract is great for many things. It will scare untrustworthy people away before even getting to first base, and will eliminate the lazy person who is dragging down the profit and doing nothing. This is a competitive contract but it keeps people in place. Chances are you will never need to worry about being bought out unless you actually should be because your whole team will not want to pay big bucks to get rid of a good asset to the business. That would be stupid. Of course there is a chance of a little greed where someone could decide to buy you out just because they want your share of the profit, but you have to understand that you will have made a lot of money if that were to happen.


Please rate this Article as I’ve spent a great deal thinking about this topic and coming up with a more secure partnership.
What do you think of all of this?

Questions, Comments, anything to add?

 

good stuff

 

Thanks. I'm surprised that there isn't many replies. loads of people were demanding something like this for a longtme.

 

not really sure why replies are slow in coming. One of my biggest worries has always been ( what happens if I tell them about my idea and then they go off and do it themselves ). But you actually brought some really good ways to make things easier.

 

In order to secure your idea with someone:

1. You need to know enough about them to be able to track them or sites they own to track them and know that they are worth the breathe. Calling on the phone is better than MSN becuase it's more serious and if the person is willing to give up their phone number than its a little evidence that they are not just wasting your time.
2. Do the NDA contract and with the NDA contract enclose your idea.
3. After they sign it and return it to you then you can freely talk about it and if they start the site on their own then you go to a lawyer that can handle out of city problems. You'll have enough proof because of the legal contract and he'll be slapped a fine and thrown offline.

Of course you should be smart about it wait until the site has made good profit.


I have at least 10 Never done before amazing idea's that would be extremely profitable. The type of site where everyone in the world will want to see it at least once. And yes, I've never found anyone who is up to par enough to tell them about any of them.

 

i really liked this article,i been trying to make a site with a good team and i am sure this insightful article will help me thru it.....