Vladimir Zhukov
Business, IT, personal development
Correct calculation of shares of partners in online projects
Today's discussion I decided to devote correct calculation of partners’ participation in the Internet Project and correct pursuing of the affairs and business in the Internet. Very often we may face a situation where two or three people get together and decide to do a Web site on a particular theme. Very often these are good friends. That is why they distribute profits equally. This is not always the right decision, but rather acceptable. In this article I will discuss how to properly share the interest in such projects. I will examine the situation of the team with three people. It is most understandable, although the classical distribution, as a rule, it is two people.
The idea of the project
Everything starts with the fact that a wonderful idea comes to one person’s mind and he/she wants to implement. This idea is really promising and interesting. As a rule, he has a friend who knows how to create websites and one mutual friend who knows well how to do start-up of projects, and may be willing to invest funds. The question that bothers most of us: how much does the idea cost? Personally, my answer leaves many people unhappy: a maximum of 10%. The idea itself is not worth anything, because even I can generate dozens of ideas during the day that have been realized yet, at least in my city, and that promise big profits. A man takes his first step towards to find partners and spell out the idea, write the plan. That is what estimates as maximum of 10% from the future investment in the project.
The project implementation
The project implementationis the most complex and multifaceted task. And in the process of realization comes the large number of contradictions. The fact that it is very rare when you can face a situation in which every participant of the project respects and appreciates the work of the other participants. This situation has been and always will be: each participant will feel that he does more than anyone else . On this occasion, there will always be disputes and minor conflicts. This is normal situation, but to have less disputes, all income and expenses should be unscrambled as well as investments of each participant.
1. The Web-site developer.
I put this participant in the first place for two reasons: first, since the creating of the project, a big responsibility lies on the shoulders of this person. Secondly, because in 90% of cases the labor of this participant is estimated totally false, what in the most cases leads to the project failure. So, the common and widespread belief is we have our own programmer, then investment in the website development will cost us “0”. Nothing of the sort! The web-site - is the embedding of this person, his time and skills possessed by very few people. How to estimate the size of the investments? It is very simple: go to several design studios and ask how much will it cost to develop a similar site. Obtain a sum, assume $500. Knowing that design studios make margin on their projects in the amount of 50%, find the conversion cost of the site: $500 * 2/3 ~ $333 , round to $330 . So, it turns out that the first member of our business a programmer developing the web-site not simply develop it as a ticket to participate in the project , but he literally invests to the project $330. This means that if the rest of the participants claim to equal shares, they must also make investments in the amount of $330 – it can be money or services. This is the most dangerous moment in the project. If you set the programmer share equal zero, and then after all subsequent investments will require from him a third of its value - you just destroy his motivation and take the risk that he will neglect this project, what will be reasonable of him. As it turns out, that besides the $330 he had already invested, he gives more and more, although his colleagues did not put up the capital. The idea that the programmer developed the site and his work has been completed is wrong. Work on the site is eternal - it will need to continually to be refined and improved, but every improvement also has a price. It also can be regarded as an extra investment on the part of the participant.
First what to do when you create a project is to take a paper and describe who and how much invests into the project! It is a pledge of strong and reliable, unified company.
2. The thought generator.
A thought generator is usually the most creative project participant who had invented the idea and gathered a team. Definitely, this person tends to believe that he is a boos here, and the entire project is reposed on his idea. That's all wrong, as I mentioned earlier in this article, the idea is only 10% of the project cost. So if 1/3 of our investment is $ 330, then the total project cost is $990. The thought generator invests 10% of the project cost - so it's $99. Let’s round to $100.
3.The investor
The investor’s role is quite simple. It is to invest money. However, he also tends to overestimate his importance. You can often hear from investors an such expression: "he who makes the money makes the rules." It is also a misleading. An investor is just a member of the project, who gives money for this project, and gives the equal share with all other participants.
Resume
What we do get as a result as distinct from the standard systems whereon many people do mistakes : zero investment - profit for three. We get a very clear picture - $990 for the investments of three and the profit we also divide by three. And this is the most honest and efficient! Programmer invests in web-site developing priced at $330. The thought generator invests $100 with his idea and will have to invest in the project still $230, the investor simply invests in the project $330 in cash. Thus, the initial budget for the project and all expenses are paid out of it, but not as they always do: there is an expense, divide it by 3, and pitch to pay it off .
We have no money, but we have a desire!
This problem can be solved easily, because the $ 330 per participant - is the size of investments. No one says that these investments must be made in cash. If project participants work on its promotion, contracts with suppliers, etc., it should also be evaluated and paid. Generally speaking, one of the participants can run around the city and distribute promo leaflets of the project. Let the thought generator to do this job, assign him a pay for this work in the amount of $ 0.01 per distributed promo leaflet. This means he must distribute 23,000 leaflets in the city to cover expenses $230. It will be a rational investment of his work in the amount of $230. Promo leaflet s will be printed by the investor, also he will pay for hosting and domain name. It will be his investments. So we see that the organization of the project is a job of work. It requires a comprehensive approach and a rational assessment of investments from each participant. All prices, payment and standards discussed by the participants in the joint meetings, but there must be one condition. If you have already decided to be square with all the world, so everyone must contribute an equal share in the project. If one makes the idea and says that it was his 33%, so it just discourages other participants. Remember that! The preliminary agreement and accurate account - is the key to a strong and successful project!
Опубликовано: 2010-12-03 12:17:31, отредактировано: 2014-01-16 22:20:39
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Argued that a good job in a crisis is almost impossible to be found, and many high-level professionals are unemployed and going through hard times. I decided to consider this issue with a philosophical point of view.
I love humor, especially sharp and lambent. For a long time I met with the work of one of today very famous American parodist Weird Al Yankovic, YouTube views on its rolls is measured in millions.
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