What do you think of a 50/50 JV deal where one does the tech and the other content?

[onlinebetdotcom]

I have some JV opportunities and want to know either what is normal for JV partnerships or what you think a good offer is. For context I have opportunities to work with a tech team to build a data focused website but we manage the content and SEO side.

[TheGooner]

It depends.

On :
1/ The time involved in each side.
2/ The previous effort involved in each side.
3/ The money / investment involved in each side.

Look at each side and work out :
- The hours worked on each side by (say) 15 $/Eur per hour for content and maybe double for techies?
- The tech investment in tools and products used in the project (and the cost to deploy them / keep them running)
- Any up-front expenses by either side.

Turn both sides effort and expenses into a nominal $/Eur cost of total effort and you'll be able to work out what a fair JV ratio might be.

But this only really works if both sides are putting in a similar and steady effort.

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If you are heavy tech up front, and then maintenance only thereafter you might structure the deal as 50/50 share of profits until the tech nominal "fee" has been repaid (plus any agreed success payments for their "sweat equity" and risk)

Then you might go down to 25 tech ongoing - again depending on exactly what is required from tech going forward.

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Without a scope of work - and an estimate of time for each side in startup / ongoing phases it really is impossible to say.
Hopefully though this posts give you some thoughts about how to structure it.

[onlinebetdotcom]

That makes a lot of sense. If it is to be a 50/50 partnership you would expect quality effort from both sides and a commitment on number of hours.

[MichaelCorfman]

Thank you, onlinebetdotcom, for the poll. We've decided to use it for our poll of the week featured in today's GPWA Times Newsletter. In that context, I've added an additional fifth option to the poll for an answer other than the four choices that you provided, where the member can explain their thoughts in a post. And I have also aligned the wording in the poll and thread title, as is our practice for weekly featured polls.

Michael

[onlinebetdotcom]

I am happy to hear.

There are less comments but lots of votes and makes me think JV could be an interesting approach to handling one part of the business to try to grow.

[NoDepositCasinos]

In my opinion, it presents a more favorable proposition for tech-savvy individuals in the long run, as it may demand a higher initial effort followed by ongoing maintenance and minor adjustments. Nonetheless, it's a deal I could consider, especially given that the tech field is not my strong suit, and it is great to have someone as invested as you are in the project.

That being said, I recommend ensuring that all agreements are clearly documented to avoid any potential miscommunications in the future. Additionally, do periodic assessments to ensure all parties remain committed and satisfied with the deal.

[Former Member 14]

Been there and it ruined a very good friendship.

The problem stems from what is an equal amount of work/hrs for each party? What would "tech" mean? Explain!

Not that I'd ever venture into a partnership again, but if I was doing the content and SEO, I would not settle for anything less than 60/40 my way.

[onlinebetdotcom]

This is the only drawback in needing to find an exit plan if the deal doesn't work out and is not balanced. Good points to consider.

Been there and it ruined a very good friendship.

The problem stems from what is an equal amount of work/hrs for each party? What would "tech" mean? Explain!

Not that I'd ever venture into a partnership again, but if I was doing the content and SEO, I would not settle for anything less than 60/40 my way.

[Former Member 14]

This is the only drawback in needing to find an exit plan if the deal doesn't work out and is not balanced.

How we had it setup was:

Each affiliate program had a main account (that use was for the shared partnership site). Players/earning accumulated in that account, was split at the end of each month, and sent to each of our own accounts in each program.

However, what transpired was the shared affiliate accounts got locked, when, the partnership went south.

These shared-rs-accounts were not unlocked until both parties agreed on what was to take place going forward, after the partnership ended. In which case earnings that would usually be credited to my personal affiliate accounts, where instead, sitting in limbo.

From memory it took a good 3 - 4 months before we could even discuss this, without wanting to tear each others heads off. Finally we came to a fair agreement, and the accounts were unlocked. But it too ages, and with no income from another source because ALL my work went into the partnership, I was starting to run dry on funds.

Reiterating, I would never do this again, too many pitfalls.