Need opinion on partnership deal

[afdad]

What is the name of your state? Washington

Hello,
I own a small website design and hosting company and was recently offered an opportunity to partner up in a small start up newspaper which will compete with a larger more established paper.

The new business will be incorporated and based on an online newspaper (daily news) with a weekly printed paper being distributed in the area.

My question revolves around how I should structure my deal with the company.

Here's a basic breakdown.

Publisher salary + 5% of revenues + 30% stock
Sales Manager salary +5% commission of all sales + 2% of stock

Since the entire business plan revolves around the website (I will be the webmaster handling design and programming and hosting the website) is what I'm asking for asking too much?

I'm asking for

salary +2.5% of all revenues + 3% stock

They other partners seemed to balk at the idea of a share of revenue since I'm not actually generating sales.

My position is that while I'm making a small initial salary the publisher and sales manager are raking in cash on my blood, sweat and tears. This is a huge long term project!

Your opinions would be greatly appreciated!

Thanks

Bob

 

[seniorjudge]

What is the name of your state? Washington

Hello,
I own a small website design and hosting company and was recently offered an opportunity to partner up in a small start up newspaper which will compete with a larger more established paper.

The new business will be incorporated and based on an online newspaper (daily news) with a weekly printed paper being distributed in the area.

My question revolves around how I should structure my deal with the company.

Here's a basic breakdown.

Publisher salary + 5% of revenues + 30% stock
Sales Manager salary +5% commission of all sales + 2% of stock

Since the entire business plan revolves around the website (I will be the webmaster handling design and programming and hosting the website) is what I'm asking for asking too much?

I'm asking for

salary +2.5% of all revenues + 3% stock

They other partners seemed to balk at the idea of a share of revenue since I'm not actually generating sales.

My position is that while I'm making a small initial salary the publisher and sales manager are raking in cash on my blood, sweat and tears. This is a huge long term project!

Your opinions would be greatly appreciated!

Thanks

Bob

...
They other partners seemed to balk at the idea of a share of revenue since I'm not actually generating sales.

My position is that while I'm making a small initial salary the publisher and sales manager are raking in cash on my blood, sweat and tears. This is a huge long term project!
...


Bob, you do not trust these people. Stay away from them.

 

[divgradcurl]

I agree with SJ. If they don't want you to share in the revenues, then you are not really a partner, you are an employee.

 

[afdad]

Thanks for the quick response.

It's not really a matter of trust, everything will be in writing and the other 2 "partners" have the necessary skill sets to make this project work.

I'm just wondering if the what I'm asking is out of line or at least reasonable.

Thanks