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Q: 50/50 split to market my software product - good or bad deal? ( No Answer,   2 Comments )
Question  
Subject: 50/50 split to market my software product - good or bad deal?
Category: Business and Money > Advertising and Marketing
Asked by: mr4698-ga
List Price: $15.00
Posted: 25 Mar 2003 18:23 PST
Expires: 05 Apr 2003 16:07 PST
Question ID: 180975
I have a new software product.  A marketing firm has seen the product
and believes it will be a moneymaker.  They are offering to do all of
the marketing for this product on spec.  They want a 50/50
partnership.  Is this a reasonable amount?  If I am the inventor,
shouldn't I get more of the profit -even if its only 10% more?  I need
to get back to them within the next 2 days.  I have not talked to any
other marketing firms.  Should I hold back and see if another
marketing firm may have a better deal for me?

Request for Question Clarification by alexander-ga on 25 Mar 2003 22:57 PST
This is a difficult question to answer without knowing more specifics.
In particular, what commitments do they have? Do they have to spend a
certain amount or percentage on advertising, for example? Or can they
just do as lackluster of a job as they want and rake in half the
profits?

I would also be very cautious of anybody who wants you to make a
commitment "right now". For this kind of decision, two days is far too
short, and doesn't give you time to really think it out or seek
competitive offers. If they are truly interested, they will be so for
as long as they think it will be profitable for them. Putting you on
the spot is a common tactic of infomercials and car salesmen. Do you
want your marketing partner to be like this?

Request for Question Clarification by serenata-ga on 25 Mar 2003 23:30 PST
Hello Mr4698 ~

Google Answers Researchers do not give legal advice. Indeed, a glance
at the bottom of this page says that our general information is "not
intended to be a substitute for informed professional ... legal .. or
other professional advice."

I am not an attorney licensed to practice law in any state in the
U.S., but I can tell you this. None of us are equipped to begin to
give you "general" information with the paucity of information you
have provided. A 50-50 partnership, what does that mean? Do they own
half your software? Are YOU responsible for half of any bills they run
up on your behalf? Do they get half any profits? And how do they
define profits?

Did you develop this software? Then the copyright to the software is
yours (general information, not legal advice). Do you lose your half
of your intellectual property rights?

Have they made you an offer *IN WRITING*? Have they proferred, *IN
WRITING* what they will do to market your product, and are those terms
acceptable to you?

This could be a marriage made in heaven for both of you - or it could
be a trip to hell in which you, in the end, are left in financial
ruin.

Have YOU taken this to a professional now? Spending the money for
legal consultation now can save you from having to spend tens of
thousands of dollars later trying to protect your interests.

It doesn't matter if the marketers are your Mom and brothers and
sisters. This is business, get the agreement in writing, and take it
to an attorney who can pick it apart and protect your interests. In
the long run, you'll be glad you did.

Good luck to you!

Warm regards,
Serenata
Answer  
There is no answer at this time.

Comments  
Subject: Re: 50/50 split to market my software product - good or bad deal?
From: alex_p-ga on 25 Mar 2003 23:14 PST
 
Alexander has made some valid points. One last thing to keep in mind,
should you decide to go ahead regardless, is that you should always
retain at least 51% so that you effectively remain in control. (Of
course depending on the language of the contract it could be that
certain decisions must be made by both parties, but in other cases you
would then have the deciding vote.)

alex_p
Subject: Re: 50/50 split to market my software product - good or bad deal?
From: neilzero-ga on 26 Mar 2003 05:46 PST
 
All good answers, but this may be the best offer you will get. The
decision is in the details, so study the fine print and try to imagine
scenarios in which some of the fine print concepts might apply. Some
are very unlikely but there are probably lots of them. Your partner
wants a quick decission because he is likely doing several of these
and has several people envolved in the decision making who will have
to review the whole file once per week, when you you propose another
minor change. In my opinion a lawyer will be helpful only if you find
one with lots of experience in similar situations.  Neil

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