Marketing my CompanyMy company's marketing
Shall I give 50% of my company to a marketing company.....
It' a marketing plattform that allows companies to get in touch with the acquaintances of their current clients. Now I have to resell the services and I have been meeting with a few intelligent on-line marketing people who have an agent and want to become a partner who requires 50% capital in my company. And I would also like to hear suggestions on how the timetable for raising capital can be structured and how much capital would sound sensible.
For me, 50% in this phase sound much too much. However, given the fact that I can't be 100% in marketing my own products, this may be the point where it's a Make-it-or-Lose-It..... And I would strongly base it on selling commission and adding a largely token amount of capital. I would also be offering more capital than a strategy invest, i.e. they would have to buy it like an angels.
My professional experience is in marketing and distribution. In order to get 50% capital in a company, we have to plan for a long period of times. Like others above, I concur that you should have very clear, distinct benefit choices related to capital. Marketing and distribution realities are that even the best plan doesn't always work, and if they don't, you've given up 50% of your company.
You may have guessed I did not make it convenient for myself to give up 50% (49% to be correct) at this point due to the fact that I published this issue here. Think I' m gonna work on a performance-based timetable. My plans are to provide them 1) a commission and 2) the commitment of own capital to income (discounted).
It would be welcome to provide any example or link to help me design a timetable (combining revenue and equity). Then I suggest that you like to evaluate similar companies at your stage, determining what the faire value of the marketing/business development service you need would be equated in dollar terms.
This gives you an approach to a kind of capital allocation that should also be performance-based if the other counterparty is ineffective for any cause. Like, if your company has a rating of, say, $1 million, what would be the value of marketing/business device service?
Wherever this makes business sense, you may want to engage fishing venture capitalists with a marketing or business background who are able to bring both funding and knowledge to the field. So I would provide shareholders' funds on the basis of a landmark plan - small launch (10%? 15%?) and shareholders' funds on the basis of achieved landmarks - 90-day, 6-month, 1-year.
When the company can do what it says it can, it should have no difficulty in accepting. Combine it with commissions and/or royalty payments to give them some money on the way and cut the amount of capital they think they are eligible for. You sound like you have a fast to market franchise solution, so if you have new customers on your side, a sales incentive should be able to balance the distribution of net assets.
Half is a big deal if one affiliate does nothing for the deal. into a $100 million deal, it'd be valuable. Can you give them an up to 50% company share options depending on the output achieved in a year?
Make $x of the bargain, get 50%. Begin by saying that the dealer perform on the basis, say, you begin with a 5% stake for signature (after'x'), then for every $x dollars put in they get'x' stocks in the company up to a certain amount and put that no more than 49% first, then after that it could become a charge for servicing.
I' ve done several stock exchange transactions on the basis of deliveringables and have learned the tough way of giving very little until they supply. Make a deal for what they're supposed to do in exchange, they get'x'. If you don't, folks get really rotten very quickly. There can be no easy way to share your revenues between you and your marketing partners.
- A distribution company's value of its interest should be the value less its intellectual property in relation to its marketing expenditure in relation to its overhead. Simply put, this value is between 5% and 20% of sales, including X% for sales up to $A, Y% for extra $B and so on.