Building and promoting a website for commission

It depends on what both of you agree on.

You both could talk about going on a joint-venture type agreement possibly?

It's up to you, but I would invest my time to build something of value because ultimately, websites are assets and assets make you money!

I haven't done it before, but it's something I would do under a joint venture agreement. Just make sure you get the agreement in writing.

Rick,

It seems to me such an arrangement would be very risky for the web designer/webmaster in the early stages of the web site and then the risk would shift over to the site owner once the site became profitable.

Whether such an arrangement would be good or bad for the webmaster would of course depend upon how profitable the site became, how large a share the webmaster took, and how much time/effort was expended in keeping the site going.

Personally, I don't think it's something I would do. Here's my reasoning:

If the webmaster can design and develop a site, then manage it to be highly profitable, why would he want to share the fruits of all his efforts with someone that has no active role in it? In other words, if you're going to put in so much time to build up a profitable business, why not be the one that owns the business? Why build up an asset for someone else?

Steve

Yes.

But you either need an iron-clad agreement.

Or you need control of the website.

You need to assume the worst in people (sorry, it's true). Once the site starts doing what it's supposed to do, making money on autopilot, that other person will inevitably undervalue the contribution and seek to eliminate you as a cost.

If you control the website you protect yourself from this risk. My model as an affiliate marketer evolved from several of these deals that went sour. I learned the hard way to control the website property.

I think this is a kind of website flipping business, in that you hire some guys make a website for you then you flip it and pay commission for them. Right?

I've been a software engineer for 12 years now & I've lost count how many times I've been approached with a revenue sharing deal like this. It's up to you as to whether or not you believe in the business model, but if it were me, I would probably have to respectfully decline.

You have everything to lose. You take on all the risk. If this business fails, you lose all of the time you invested. Your partner loses nothing. You also have to ask yourself, do you NEED this partner for this business to work? What's his role? If for example, he's a great salesman who can handle the sales end of things while you handle the online portion, then I can see a need. However, if he's just coming to you with an idea where he brings nothing to the table, while you're bringing everything, that's an unbalanced partnership from the start.

Then, even IF you truly believe in this business he/she's approached you with, you need to look real hard at this person's character. They'll be your partner after all. Do you trust them? Can you work with them? If you've worked with them in the past, do they respond to your requests for feedback, documentation, or general emails in a timely manner or do you not hear from them for days on end (i.e. they flake out)? If they flake out with simple things like that, what makes you think they have what it takes to put in the hard work to launch a successful business?

In the end, these are just opinions based on my experiences. If you truly believe in it, go for it (make sure you have contracts of course), but just be cautious before jumping in.

I have been offered a similar deal by a blog owner who is getting a good amount of traffic but he does not know how to monetize his site. The cost here is our time. I am thinking of saying no because I think I can make more money on my own online business. If you are going to say yes to this deal make sure you have a clear written agreement. Have it notarized to make sure the contract is legally enforceable.

Rick, unless you have full control of the site, administering a percentage-of-profits commission deal is potentially messy. And if this is a newbie venture, even your best efforts might not be enough to make the return worthwhile.

I'd look to charge a set fee for building the site and a monthly fee for marketing/site maintenance. I'd also organize the hosting either by setting up a white label package or signing up with a host that offers a monthly affiliate commission. That way, you're guaranteed at least some return on your efforts, regardless of the success of the site.

I've had several sites where partners and I split earnings, not only from my own site, but from maintaining Amazon sales as well.