Forums: Discussions for entrepreneurs and small business.

I was recently approached to become a partner of a new website that is nearly finished being built.  I am not a programmer. I have not invested any money nor am I expected to spend any money to fund any part of the project including future web design, marketing, payroll, etc. Basically, the two existing partners want me to come on to build up the site, launch it, run it - in other words, I would be responsible for EVERYTHING.

They want to compensate me with a share of the profits and NO pay. As most of you know, a business is likely to not be profitable for a long time especially if its on the web. I'm assuming that "profits" is to mean money after all expenses have been paid but this is something that must be defined. I would also need to clarify if the share of the profits would be in perpetuity.

Can anyone provide any insight into this situation and what share or percentage of the business or profits would be business standard? Thank you.

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I would like to help you design your website. I have 5 years of experience design and development of any kind of website.

Here are some of my work:

http://www.nattylink.com/

http://www.dazzlekaraoke.com/

You can contact me on 281-250-6644

Regards,

Vishal

Does the business model work? The way I see it, for web startups, there are only two ways: get partial ownership and no pay OR get no ownership and pay. A share of the profits? ...doesn't even make sense to me. How do they measure profits? cash? users? This deal sounds sketchy to me!

JR

Web startups do not earn much at the onset as you are still laying down the foundation.  It is likely that you will not be earning much during the first year.

If you do agree to the kind of set up that you mentioned above, you must be have access to all financial transactions within the site.  This way, you do know if there is indeed profit.

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Kate

MedifastHealth.org