What do you think is a fair agreement here?

**forfun_cash** · 04-10-2008 06:31 AM

Hi guys. I've got a problem here. Recently, i came up with an idea which i think is great and profitable. But that's only the idea. I cant implement it because i need a web designer to help me do so. Say if i do not have a capital, is it fair to offer him sweat equity? 50:50?

Do you think he will accept it if he think my idea is profitable? Say if my idea really is feasible, would a sound person accept my offer and not charge me any money while he design the website himself?

What if he listened to the idea already and said he's not interested, while the next thing he do is to create the website himself? Is this possible? Thanks

**Logan Baker** · 04-10-2008 07:49 AM

If all you need is a website...don't hire and individual entrepreneurial person. Go to a frim who specializes in web design and wouldnt be interested in starting a new venture. I used logoworks for one of my sites and was mildly pleased. Have you tried getting funds from an actual investor? 2nd mortgage? family?

However if you MUST have this guy because of his capabilities:

First thing first.....you need to engage him and see if he is interested in getting your business. Leave it at that. The answer should be "yes". Google a "Confidentiality Agreement" or "Privacy Agreement" print it, plug in all the necessary information for both parties. Essentially it may not hold MUCH water, but at least he will understand that you are serious about protecting your idea and you will have conveyed said message in a professional, well put-together manner. Hopefully enough to scare him into thinking twice about running off with your idea.
This is somewhat a tricky hand becuase of your lack of capital - you don't want to let him know that you dont have the money to build the site (then he knows you obviously dont have the cash to litigate him). Your best bet is to explain that you have the idea, the business plan, the direction but you will be investing your fair share in other aspects of the business....would he be interested in ownership of this company?
If he says yes....I certainly wouldn't offer 50%. DO NOT give him controlling interest of YOUR idea. You'll need him to sign a non-compete very specific to this type of website, its function etc.. I would offer to give him 20% ownership of the company - right now its worth nothing and all he has to do is build a site. Set up a compensation plan where he gets 20% of the bottom dollar on a monthly? quarterly? basis. IF the company is a success he will hopefully have earned back every dollar and then plenty that he would have made building the site for cash.

There are many more things to consider in this...lots of unanswered questions but...at least this gets you started. Ideally...borrow some money from family - get the site up even if its cheap...make some money, build a bigger better site and so on.

Logan P. Baker
schoolmarquee.com

**forfun_cash** · 04-10-2008 08:13 AM

hi thanks for your reply! really appreciate it.

yeap i was thinking of hiring someone from a established web designing company to help me create the website. But upon thinking that if the website is done, no one's gonna help me market it, keep it going and etc. If someone's in the business too, then at least he would maintain and keep the site going?

Hmmm or is there such a thing as hiring someone to maintain and keep the site going? thanks

**GuyBBY** · 04-10-2008 08:16 AM

Did you not see my, and others, responses to this situation yesterday?

http://www.youngentrepreneur.com/for...ded-30809.html

Guy

**GuyBBY** · 04-10-2008 08:19 AM

Originally Posted by forfun_cash

hi thanks for your reply! really appreciate it.

But upon thinking that if the website is done, no one's gonna help me market it, keep it going and etc. If someone's in the business too, then at least he would maintain and keep the site going?

Hmmm or is there such a thing as hiring someone to maintain and keep the site going? thanks

forfun...PM me. I went through this same situation with my own sites early on, plus have been advising others on this recently. We can talk via email about all your options to get this to work...I think you just need to see a bit more into the options you have in business regarding getting the work and services done for your idea without always having to pay or simply give up on the situation before thinking of different ways to strategize.

Guy

**tazman9r** · 04-10-2008 08:59 AM

Sweat equity only works if you can get the person you need to get a excited about your idea as you are. I recommend a good business plan to present to a person you know or is referred to you by someone you know.

**GuyBBY** · 04-10-2008 09:26 AM

Originally Posted by tazman9r

Sweat equity only works if you can get the person you need to get a excited about your idea as you are. I recommend a good business plan to present to a person you know or is referred to you by someone you know.

Great Point. The business I developed deals with boating and marine life. Our current CTO, who came on for sweat equity, has grown up in the North East where we market, as well as been an avid boater with his family all his life. He saw the business plan, and as Taz said, LOVED the idea.

So you need to make sure you "feel it" with them. They should be actually counter interviewing you showing their enthusiasm and natural drive to want to help and drive the venture forward to success.

**hvastovich** · 04-10-2008 10:43 AM

Originally Posted by forfun_cash

Hi guys. I've got a problem here. Recently, i came up with an idea which i think is great and profitable. But that's only the idea. I cant implement it because i need a web designer to help me do so. Say if i do not have a capital, is it fair to offer him sweat equity? 50:50?

Do you think he will accept it if he think my idea is profitable? Say if my idea really is feasible, would a sound person accept my offer and not charge me any money while he design the website himself?

What if he listened to the idea already and said he's not interested, while the next thing he do is to create the website himself? Is this possible? Thanks

Hey forfun..

Let's discuss your idea, 50:50 may work if the idea is great. I can sign non-disclosure. We do web-design, development, Search Engine Optimization marketing, and advertising. check us out here: (launching in a week or so Akvilon Studio | Way Beyond Impression) or maybe i can at least help somehow..