Quick Question Regarding Percentage Split for New Department in Existing Company

Discussion in 'Growing and Managing a Business' started by xok-ui, Feb 17, 2015.

  1. xok-ui

    xok-ui
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    Hello,

    I have been working in the SEO industry for the past 4 years and have gotten to the point where I am wanting to expand beyond a few clients and run a business doing this. I met someone with a pre-existing Web Development and Design company (strictly development/design, NOT offering SEO services prior to meeting me) and have talked about partnering with him. I originally felt this could be a good opportunity to merge services because web development and SEO go hand-in-hand and I could offer a service that his business is currently not offering.

    However, his idea of "fair" is to give me 20% of all SEO revenue and he wants to keep 80%. He cannot run an SEO department without me or even do the work. It would be me doing all of the work for a mere 20% of the profit. He is an insanely good developer, but doesn't know anything about modern SEO. Then there's this whole rhetoric of "we're a family, we have to take care of each other" etc., but this just feels like he sees me as an opportunity to take advantage of someone else's skills and profit off of it. He feels that because it's his company, he should be taking the majority of the profit and I feel that I need to be getting a much larger percentage because without me, he couldn't even offer this service.

    Any thoughts on how we can fairly share this profit or experience in this sort of situation?
     
  2. Geekion

    Geekion
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    what is really fear is 50%
     
  3. Joseph.Shivell

    Joseph.Shivell
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    How did you come up with that figure, and why do you think he should be afraid of it? Or do you think he should be afraid to ask for it? If so, why? As xok-ui mentioned, his "partner" knows nothing about SEO, and wouldn't even be able to run an SEO department without him. If anything, the reverse of what his "partner" wants would be more equitable. Or, that would be the start of negotiation. Because xok-ui would be doing all the work, he should get the larger percentage of the profits.
     

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