A issue that may occur in a profitable Joint venture

[kathirvel]

Dear NP Xperts,

Have a nice day.

I m planning to register the domain names with a joint venture, i.e I myself & a investor will invest 50 % while registering domain names . then we will also share the revenue that we generate either by ads or by selling the domain name.

What I want is , how can I let him know that I will share the profits with you.

The domain names are all registerd by me.

how can we come to an agreement on a legal way.


Awaiting For an expertise NP solution,,,,

U R S Kathir

 

[fonzie_007]

Joint partnerships can lead to many sticky situations where partners end up hating each other and sometimes end up in litigation. The easiest thing you can do is to write up a contract; however, depending on where you and your partner live, that contract may not be enforceable by any court.

If you are splitting profits, you might want to set up an arrangment where one party has half the domains in his name and you have the other half in your name. Overall, partnership agreements are only as much good as the amount of trust you have in the other party (or in the contract you have signed with them). Most of all, just make sure you are looking out for your interests so that your "partner" can't screw you.

 

[labrocca]

The best way to do this would be to form a corporate entity. Transfer all names into possession of this entity. Start a new adsense account under this corporate identity to allow all the owners to login and view information. All owners should have access to domain login as well.

However saying all that..I don't recommend you partner with anyone..unless these are real world friends or live in the same city as you. Things can go wrong fast otherwise.

 

[fonzie_007]

As Labrocca was insinuating, you may want to look at setting up an LLC.

 

[OvenMitt]

Partnering = Bad idea.

Registrants could transfer names around w/o the other party agreeing, hide profits, disguise actions, etc.

Unless it's your brother who gave you his kidney, fly solo.

 

[oldratracer]

Kathirvel...I have set up an LLC in the past with a partner just for the purpose of what you are proposing... and as Fonzie_007, Labrocca and OvenMitt are all 3 are saying/recommending...Bad Idea!!! I TOTALLY CONCUR from Experience....don't get me wrong...it was profitable...but a VERY bad experience which left a very bad taste in my mouth..we started out as friends and ended up...well.....not so...
JobCenter.com was the Original JV (Joint Venture)....the only partner I have now is my wife lol...
NEVER AGAIN....GR8 advice guys....name can be taken advantage of and switched without notice from accounts ...very valuable names.....and funds as well....friendships lost...lawsuits .....NDA's....and on and on....

LLC for Domains...IMHO..= Bad Idea from someone who's been there

OldRatRacer

 

[labrocca]

I have been in 4 partnerships..while they can work if the conditions are right ...they normally end badly. I guess I ain't the only one then.

 

[kathirvel]

Thanks for u r response friends.
Me & him both are from India , but he is 1000 miles far away from me.

Though I too Accept that joint ventures are risky one, i have no other way.

I myself hav a list of 100 available domain names that are valuable atleast 100 times of REG fee but I dont have money to invest.

I will try to have an written contract for the 2 domain names that we register.

Better i will get loan from bank rather than going with joint venuture .

I welcome more experts to share your views.

Rgds,
Kathirvel
http://www.teenclassic.com
http://www.whmsupport.com