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+--- Thread: Perecentage of ownership division for marketing (SEO) start-up between programmer owner and sales focus owner? (/thread-9495.html)
Perecentage of ownership division for marketing (SEO) start-up between programmer owner and sales focus owner? - Greg - 10-14-2012 05:36 AM
I am currently in talks to build an online marketing start up with an acquaintance of mine. The services we plan to offer are SEO, web design (redesign), online reputation management, social media marketing, etc.. (full service) This acquaintance owns a domain which we can use, this will be his first 'investment'. He is a programmer which means he will do all the back end work related to optimizing future clients sites, as well as designing them. He will also completely design our business website. I am a salesmen by trade which means I will attract future clients via phone and/or in person and get them to sign the contract. I will manage the client portfolio, get them to renew and grow our client base. I will additionally do all of our networking in any way I can.
Both of us will provide vital aspects to the business but my question is; all things considered, how should we divide ownership of the company (in your opinion)? He is leaning towards 60/40 in his favor. I prefer 50/50. I am a phenomenal salesperson and while he will focus on extensive technical work, I will be drawing in any and all clients.
All things considered, what would be a fair division of ownership percentage?
(I am aware we also need to invest in a lawyer to draft client contracts and proposals, as well as register our business, etc but let's leave that out of the equation for the time being.)
- Dean Soto - 10-14-2012 05:44 AM
Hi Greg,
Should be 50/50, hands down. I was in the same situation not too long ago. The reality is that both sales and the back end guys are just as important. Without you, there are no customers and no growth, and without him there is no finished product.
Profit split should be 40/40/10 with the 10% going back into the company to hire staff and grow etc.
Dean
- Clara - 10-14-2012 05:44 AM
If you only duty is bringing in new customer i think 60/40 is fair. Also he is making the initial investment too . Down the road he is going to be the only that do the nasty tech stuff
I did two venture. Both started with 50/50. I was the tech guy for both business and i didn't do any investment for both. Eventually i bought out the other party and hire an in-house sales instead