Discussion: Paysite managers on a percentage scheme?

[scottybuzz]

I am looking for someone to run my paysite for me. I already have someone in mind ( so please no applications ) But because I have never done this before, how much should they receive based on a number of factors.

The situation is that the paysite manager will be pretty much running %90 of things, including affiliate support. I will be giving my feedback and making the required changes I see fit (about %10 of work). I have decided to go with percentages because per hour may seem quite difficult especially with affiliate support, as there is little idea on how much time will be needed.

Please bare in mind that at the moment pay is being paid by the hour, not a percentage, only if revenues increase will I go down this route.

I have a few questions, some may seem open ended, but any ideas you throw could help me.

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?

Again my questions may seem stupid, but I have no idea what I am doing in this area but would love to know, I may have more questions over the course of this thread.

[RadicalSights]

I'll take 96%

[AlCapone]

If they are doing 90% of the work, pay them 90% of the money

[AlCapone]

Actually, if they are an employee, why should they pay for any costs? If you bring them on as a partner, then paying partial costs should be a question.

[scottybuzz]

Thanks, but take into consideration also points 2-4 when giving a figure please. I like short and sweet, but I don't think it can apply to this thread.

[scottybuzz]

Quick bump for a biz quiestion.

[Barefootsies]

Good luck bud.

I was looking for something similar a month or so back. Most people who contacted me wanted a base salary AND percentage of profits. When I said it would be performanced based, since I do not know most of these people and their 'claims' from the next person. They refused.

Almost no one wants to work for performance based package. Even on successful site(s) or network. They want GUARANTEED money. Like a base and percentage of all profits. I said, one or the others. Not both.

You will have a hard time finding someone. I'll also post the standard GFY troll reply for you to get it over with.... "If they could do this for you, why wouldn't they just do it for themselves and make/keep more money'?

Again, GL sport.

[harvey]

Originally Posted by scottybuzz

I am looking for someone to run my paysite for me. I already have someone in mind ( so please no applications ) But because I have never done this before, how much should they receive based on a number of factors.

The situation is that the paysite manager will be pretty much running %90 of things, including affiliate support. I will be giving my feedback and making the required changes I see fit (about %10 of work). I have decided to go with percentages because per hour may seem quite difficult especially with affiliate support, as there is little idea on how much time will be needed.

Please bare in mind that at the moment pay is being paid by the hour, not a percentage, only if revenues increase will I go down this route.

I have a few questions, some may seem open ended, but any ideas you throw could help me.

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?

Again my questions may seem stupid, but I have no idea what I am doing in this area but would love to know, I may have more questions over the course of this thread.

1) get a lawyer advice. That's all about it.

if you decide to go the risky way, here it goes
1) whatever the parts consider fair in a negotiation. I'd say something like 60/40 after covering costs is OK
2) answered in 1
3) Probably, unless the deal is to put everything in the package
4) again, depends on negotiations, but they'll probably want the referral (same as you'd probably want the revshare for your own traffic)

the above being said, be very careful and specific on what are the parts allowed to. ie, I wouldn't give access to some sensitive data unless you REALLY trust them, and even then, not without a proper NDA. If you want to work the deal from the point they start bringing things to the table, then draw the line and specify the exact amount of members you already have (to keep the old members still rebilling), but this could be really tricky since it's kinda difficult to know exactly which member is rebilling from a given point unless you go on a one by one basis. Plus, they'll probably tell you (with reason) that a members is rebilling because of their work. So I'd recommend you to open a subaccount (or new account) and work from there.

all the above being said: GET A LAWYER!!!

[spazlabz]

first thing that pops into my mind when I hear percent is 'I don't have money to pay you', I would say that you should offer them a salary that they can take or leave.


spaz

[Juggs]

If you're hiring someone, something like a 50/50 or 60/40 works. He maybe doing 90% of the work, but without you providing the capital, both of you would have NOTHING. If you pay all the costs, that more than evens out him doing 90% of the work.

If you're looking for someone to put money into ita nd split the costs, you're not hiring someone. You're looking for a partner. Things will be alot different and it'll probably be more of 90/10 split.

If for any reason you later sell your paysite: If he's a hire, "thanks for your services, but I'm selling the business". If he's a partner, he can control whether or not he wants to sell or be prepared to split the sale price.

Originally Posted by Barefootsies

I was looking for something similar a month or so back. Most people who contacted me wanted a base salary AND percentage of profits. When I said it would be performanced based, since I do not know most of these people and their 'claims' from the next person. They refused.

Almost no one wants to work for performance based package. Even on successful site(s) or network. They want GUARANTEED money. Like a base and percentage of all profits. I said, one or the others. Not both.

Hate to hijack the thread, but Barefootsies - are you still looking?

[epitome]

Fair salary with a fair performance incentive based on a gross %.

Anything otherwise is asking an employee to take a risk. If employees wanted risks, they'd be business owners.

[harvey]

Originally Posted by spazlabz

first thing that pops into my mind when I hear percent is 'I don't have money to pay you', I would say that you should offer them a salary that they can take or leave.


spaz

well, this is true in most cases, however, if the parts already agreed to it, then there's nothing to say about.

Personally, in these hard times, percentage alone is a risk, unless you're really desperate or you need something to prove or you're extremely confident, you're risking building or maintaining the "status quo" of a site for free. I think the fair way should be some (little yet decent) fixed sum and then a percentage based on goals. After all, why should anyone work for free? Furthermore, unfair deals are what cause those deals going into trainwreck mode, at some point the part getting the loss will start trying to get some money somehow, or stop working, or.... (I won't give any ideas, you'll get the point)

On a side note, I offered something like this a few months ago, 100% performance based, as long as the site had some conditions (mainly size of program and exclusive content). 7 programs contacted me, they all wanted me to spill the beans, so I told them I had no problem with that as long as they signed a NDA. Never heard again of 6 of those programs, they just wanted me to provide them a plan to enhance their programs for free, not even percentage, so there's everything on both sides, and people is quite desperate nowadays

[J. Falcon]

Originally Posted by spazlabz

first thing that pops into my mind when I hear percent is 'I don't have money to pay you', I would say that you should offer them a salary that they can take or leave.


spaz

[GrouchyAdmin]

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?

Again my questions may seem stupid, but I have no idea what I am doing in this area but would love to know, I may have more questions over the course of this thread.

1) I'd say depends on returns. If they're effective, they deserve a good cut - if they suck for promoting, don't contact existing or make new clients, they shouldn't make a hell of a lot.

2) The only time I've seen charges split are when paying out the revenue for a revshare with the content producer, not the management.

3) For most systems, Yes.

4) Usually they'll get the referral fee.

[scottybuzz]

Nice interesting, keep the replies coming

[Varius]

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?

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.

[scottybuzz]

Keep it going, thanks so much so far.
Enjoying the read, going to put my thoughts down when I get the time