Hello all! I just discovered this forum while doing research for a deal I'm working on, and love what I see. I'm a 32 year old Entrepreneur with an MBA and one successful startup under my belt, where I grew a company to about 35 employees and raised $15mm in angel/VC capital before selling most of my equity, stepping down as CEO, and continuing on the company's Board.

After taking a couple of years off, I am ready to create another monster and am in the midst of negotiating a deal in which I would GREATLY appreciate any advice from anyone interested in contributing!

Here's the situation... I recently met someone who started up an information website focused around a particular game/hobby niche industry, just for 'fun'. I prefer not to share which industry in efforts to keep this anonymous. Over the last few years, this site has now become the highest trafficked informational site and forum in its space (~140k visitors/month, 40k unique, 30% new), and ranks #1 on all search engines using any combination of relevant keywords.

The fellow who created this site has never attempted to monetize it, despite many advertising requests by industry providers...but he would now like to 'hire' me to capitalize on the relatively large opportunity at hand. Further, the site is pretty vanilla and sloppy, and IMO has additional traffic potential (aside from revenue potential) as well. Most of the site's content is user generated (ratings, comments, forums, etc), so very little work has gone into it on his part over the last few years.

The site also has no money to pay me a salary, so we are discussing a deal that would include equity and commissions (from ad/sponsorship sales). Also part of my compensation deal, I have been offered space on the site to promote a side business of my own.

*****So my question to you all is probably obvious at this point - What percentages of equity and commissions would be mutually fair for me to ask for?*****

A little more info to assist with any advice:

- I'm not sure about the full revenue potential of the site, but I would guess $5-10K/mo is almost immediately obtainable and $15-20k/month will be possible as we are able to acquire more sponsors and identify additional revenue opportunities.

- The creator of the site has Zero chance of running this on his own, as he has wayyy too many other projects going on, and has no interest in doing this himself

- Aside from my business background, I also have some major credentials in this particular industry, along with a solid reputation, and a VERY strong network of contacts (I know all of the key industry) people. My biz background and industry credentials are very rare, so it would be unlikely for him to find a better suited candidate than myself, which he and I are both aware of.

- This will probably be a 'full time' gig for me over the next 2-4 months, and will taper off some as we begin to get recurring partner traction.

- The ability to promote my other side business on this site will add some credibility to his site, as well as allow me to generate an estimated $5k/month personally (non-commissioned)

- I will assume the role of President/CEO of the company, where I will take the reins and run with all decision making and sales efforts.

- A nominal amount of money will be needed to invest in revamping the site and creating marketing collateral...probably < or = $10k, which he (or I) is/are willing to put up.

I think that should be enough details to get some initial feedback. Please let me know if I can try to provide any additional information. Again, I GREATLY appreciate any advice, and in return, will gladly share my own experiences by participating in other threads once I get this deal done (it is somewhat time sensitive, because we have an interested sponsor taking us to lunch in 2 days. lol).

Thanks a bunch!

-J