Trusting a JV partner?

I'm assuming many of you have JV'd with someone you don't know.

How do you get the trust required to work together? Do you use a damage-deposit type deal? Personal info swap w/ validation? Meet in person? Enough 'dirt' to assure mutual destruction in the event of a falling out?

Personally I used to have trouble trusting people in group projects at school, let alone a faceless random on the internet. The only thing about any of you I know is that you like making money off of people on the internet (not generally indicative of a complicated or overbearing moral framework).

No offence intended by that last remark. I'm not saying we're not to be trusted, just that this isn't exactly a forum for bone marrow donors or volunteers to help the elderly.

Basically, what's your insurance policy?

I had 2 partners in my life for really big projects and all i can say is once the bigger money comes in it instantly break.If you do a JV make sure you have full control of the JV so if he leaves you wont have any issue because of that and that he has no possibilities in cheating you by stealing money or important files.

I don't JV much, but when I do it's usually a series of agreed upon milestones/goals in the project as well as the of exchange phone, email, facebook, etc.

The key is to make the roles in the JV as crystal clear as possible from the very start. In my experience, there's a lot of leaks into other areas that will arise if everyones role isn't 100% clear. Web designers doing copy, programmers adjusting colors, etc.

Set ridged rules on what you're responsible for from the beginning and you'll save yourself a TON of hassles & headaches.

Edit: Your insurance policy is called "due diligence".

A few tips off the top of my head -

Your best line of defense is your own due diligence.

You should be vetting potential JV partners prior to commencing any work and having lengthy discussions about every detail of who is responsible for what, how they can expect to be paid, and when.

JV agreements and contracts are useful, but in most cases unenforceable and just for peace of mind. It's still advisable to put things in writing in the event of a dispute later on.

If you have any doubts about a potential JV partner's trustworthiness or abilities it's best to have a straightforward discussion about your concerns up front.

It's better to have an awkward moment than see weeks or even months of work go down the drain because you were to shy to voice your concerns. Anyone truthfully interested in partnering with you shouldn't have any reservations about discussing his/her ability and limitations.

Dont work with anyone who has nothing to lose by abandoning either you, the project, or both.

If there's a cash investment involved be sure you're defining any and all repayment terms in great detail.

Joint ventures that offer ridiculous returns on small investments with little to no risk are almost always bullshit and if you fall for these scams you should consider a different line of work, like scrubbing urinals.

It is funny this thread should come up. There is some great advice here.

I am meeting my first JV partner on Saturday, where we will open a joint business bank account.

I am the senior partner (and eldest by 6 years) with the most experience. He is a slightly wild, but incredibly enthusiastic 20 year old.

I have some concerns, but will voice them. And of course, watch will be watching him like a hawk every step of the way.

I agree with everyone above. JV partners are good because they have whatever it is you need or want. Here is an example: I use a JV partner for Parking my domains. He sends the traffic under my discretion and in return I get paid by that provider. If he screws up, and my account closes due to him getting greedy well you don't have to pay him. If he is honest with you, and vs verse then you pay him when you are paid and build a relationship. Never give out your account information to anyone under ANY circumstances!! You have the upper hand depending on what you are doing. In domining I do since I own so many. Some JV guys want my profit which is fine by me since I don't have to buy the traffic. I am not out of picket. But once I am paid I do pay them as long as they are fair and follow the TOS with me. I hope this helps! If not feel free to send me a PM we can talk more.