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My affiliate provider contacted me - they want to form a joint Ltd with me - should I?

Discussion in 'Business & Tax Advice' started by asker1, Jul 24, 2015.

  1. asker1

    asker1 Registered Member

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    Hi,

    i would like to know your opinion on this guys. I am not from UK/USA so please take that into account, i am from a smaller country where its possible to rank for very good keywords. So I have created a website in an insurance niche to which i built my own PBN and pushed it to the first places. Unfortunately there wasnt much money in it, but the affiliate provider of the insurance calculator on my site contacted me that they want to meet with me in person. Their office is not that far from me so I met them.

    Basically they like what I have accomplished and they see that I can rank in some very tough niches. So they asked me if i would like to form an Ltd with them and they would pay me any expenses to do SEO for two main niches (health and loans). They will pay for the PBN costs (domains, writers, hosting etc.), we are talking about around 10 000 € here. They will also take care of all accounting and legal stuff. I will do everything else (basically doing SEO + outsourcing some tasks like copywriting and webdesign which they will pay for) and they will also provide me with some minimal pay per month so i have enough money for living expenses (around 400 €/month) till the company will make enough profits. For this they want their share of the company/profits. I should decide how much % I would like to have in the company and we will discuss it. So this is my first question.

    Second question - they are also the biggest affiliate provider for online loans in the country so they have more possibilities to squeeze out more money from a website. But it just happens that I started a website with loans and they are my affiliate provider. Its few weeks old so I cant be sure how much money will it make. There is a lot of money to be made if i would be in the top spots, i am sure about that. If I would form an Ltd with them - that website would have to be a part of the Ltd. So I wont compete with myself.
    So basically i will have more resources at hand + they will pay the expenses for the website (around 2000 € / year at most i think) + they will give me more ways to monetize it BUT i will share the profit with them. Is it wise? Or should I keep this niche/website for myself and try to rank it with my own resources?

    Thanks for any advice! :)
     
    Last edited: Jul 24, 2015
  2. asker1

    asker1 Registered Member

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    Bump... ......no response? :(
     
  3. asker1

    asker1 Registered Member

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    Last shameless bump... any help?
     
  4. IMpossible

    IMpossible Supreme Member

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    It's like totally up to you. If you don't know what to do then I wouldn't consider running a Ltd.
    Have you informed yourself about the requirements and legal stuff of running a Ltd?
     
  5. JadMac

    JadMac Junior Member

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    My advice is don't rush into anything before you know all the details. Discuss it with them, give yourself time to think things through and check that everything looks good.
     
    • Thanks Thanks x 1
  6. asker1

    asker1 Registered Member

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    Well in fact i am pretty imformed about the requirements and other stuff that is needed for a Ltd. At least i think so, I studied it in university. The legal stuff etc. is not a problem for me. The problem is if I should take it and if yes - how much % should i ask for in the company? Basically there are not many numbers (we dont know what income it will bring etc.) so its very though for me to come up with a reasonable number...
     
  7. S2Term

    S2Term Junior Member

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    Why not ? As long as they are legit there isn't much downside, other than splitting profits.

    One of the most valuable things that could come out of it is more knowledge. If they are the biggest affiliate marketer in your country it seems like a great way to learn more about IM and possibly, in time, be an equity partner in their business.
     
  8. asker1

    asker1 Registered Member

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    Yes, you are right S2Term - the only downside is splitting profits. But thats the main problem for me - what if i could earn more if i wouldnt split the profits and just keep them for myself?
    But lets say that i will take the offer. I will provide my 30 PBN sites, my new money site, i will work full time (!) on this and I will bring my know how about SEO. They will give me the money for buying more sites to the PBN, will pay the writers etc. basically they will provide me with 10 000€. So we are not speaking about millions of € here. They will also pay me 400 € monthly so I wont starve to death till the site wont have enough profits. Plus they will take care of the legal stuff and they will give "us" 100% profits from the loans etc. because they are the affiliate provider. They will also do some stuff like not needing an iframe on my money site, they will make it directly on my site somehow.

    Basically I will bring knowledge + a working PBN + I will work full time on this // they will bring the money + some additional know-how
    How much should i ask for? I mean how much of the company profits should be mine?
     
  9. nanavlad

    nanavlad Jr. VIP Jr. VIP

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    This is a tough one

    but i would ask them what sort of % they are looking for
    before going any further

    They are making the offer, so its up to them.
    They are hoping you will make a mistake and not ask too much.

    Also you are tying yourself to them
    So you should be told what kind of earnings you can expect

    On the other hand having all your expenses paid
    money in the bank
    there's nothing stopping you from building more PBN
    in different niches.
     
    Last edited: Jul 25, 2015
  10. S2Term

    S2Term Junior Member

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    I always try to think long term. Sure you can make extra money in the short term by going on by yourself, but long term you will be building relationships, knowledge and connections. On your current path your future is known ... on a new path your future is open.

    You have to make a cutoff point though, and make sure they are aware of that cutoff point, by saying that I'll do this for a year or 6 months and see what you get out of it, both in terms of money and knowledge. If it isn't worth your time clearly state to them why and be able to lay down some proof and simply say that you appreciate the experience but it's time to go back on your own.

    If, however, you are learning a lot, gaining connections and making decent money it might be worth the short term decrease in earnings.

    It comes down to paths in your future ... if you go down your current path things are fairly certain ... you can make money, maybe scale and earn. If you take the unknown path there is the possibility for an exceptional upside with little downside. You never know when you might meet a new partner or connection that can increase your earnings by a exceptional amount ... there is the potential, with one introduction to change your life. On your current course there is a much smaller probability that this could happen.

    Create pathways in your future for unknown, exceptional upside.

    Think of it this way:

    You have 2 bets ... a $10 bet that will get you $20 with 80% probability or a $15 bet that will get you $200 with 60% probability ... which bet would you take?

    I have no idea. This, I imagine, will be a discussion between you and them. I would start at some multiple of your current affiliate percentage, maybe 2x or 1.5x.

    Good luck.