Quote:
Originally Posted by scottybuzz
1) What's a good figure(% wise) between the 2 of us?
2) If taking a percentage, do they now pay their split of the paysite costs? (content, programming etc)
3) Would my direct traffic need an affiliate link when sending traffic to the paysite in a percentage based scheme?
4) If they refer affiliates do they take the 5/10% webmaster referal fee or does that go in the total revenues for both of us?
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1) What percent of your revenue does his current salary take up ? You should offer him a percentage that is equal to that or a slight raise, to start. Otherwise, if his money suddenly triples or quadruples, he may lose his motivation to keep working hard. Also keep it low enough so you can set milestones, which he can achieve to increase his %.
2) This really depends what else you bring to the table. If he is doing 90% of the work, one would imagine your role is mostly funding. In such a case, I would believe the expenses should fall on you; for example if you have a negative month, his earnings would be nothing but he should not be expected to put money in out of pocket to cover the loss. It also depends if you are doing a full partnership or just profit-sharing arrangement.
3) If part of your terms are that your existing traffic doesn't factor in to the revenue or profits he gets a share of, then yes; in any other case it would be part of the whole enchilada so you should only track it separately if you wish to see its stats tracked separately.
4) Like #3, this again depends on your agreement but generally I would say everything should be included in one total amount when doing % based deals.