The details of starting a small review site with a partner?

[Instrumentalist]

What's up WFers. Here's my story. I want to start a small review site that has the potential to make money from various online retailers affiliate programs. In the past my friend has expressed interest in doing what I do, and I thought this might be a good opportunity for him to get his feet wet with AM, while it the same time being beneficial for the review site (two people writing product reviews are better than one).

So I guess my question is this. What would be the best way to set up a joint business venture? To narrow it down:

Do we share a singular affiliate account under one business name, or each get a separate accounts and act as independent contractors for the companies we promote?

When buying products to review, do we get a single business credit card, or do we just each buy things with their own separate credit cards?

Do we need to file ourselves to the city as a business?

I'm sure there's a lot more that I'm missing here.

Curious to hear some responses. Any more ideas would be helpful. Thanks.

 

[dreamache]

If you do it and you're the one showing him the ropes, take yourself out of the equation as much as possible in terms of work commitment. In exchange for showing him the ropes, he's assigned the tasks that actually make the site successful.

Otherwise, in the very likely scenario that he's either (a) incompetent or (b) a slacker, you won't have completely wasted your time while being stuck having to pay him a % of the money that you worked for.

Many people here will tell you not to partner with a friend. You can do it, as long as you're smart about it and understand all of the risks.

Do we share a singular affiliate account under one business name, or each get a separate accounts and act as independent contractors for the companies we promote?

I'd do the independent contractor idea. Keep everything as separate as possible.

 

[Instrumentalist]

I appreciate your concerns to my friends ability to contribute to the web site. However I am approaching this project as more of a hobby, in the sense that I'm not gonna be throwing a ton of money at it, and anything that he contributes, big or small, would be just fine with me. Like I said, it's just going to be a small review site for products that we already purchase.

I am starting to think however that separating ourselves each as independent contractors would be a good idea. My thought is that for any review that each one of us writes, we get to place our own affiliate link for the product within the post.

 

[stmadeveloper]

If you want it as painless as possible...

step out of the picture 100 percent, tell him to do xyz, then zyk, etc....

Something wrong with helping a buddy out and getting nothing out of it?

 

[Paper_Chase]

If you are serious about this, I suggest forming a corporation with each of you owning 50%. For something simple like that you can probably do the paperwork yourself. Sign up for new affiliate accounts with the business name. Go to your personal bank that you have a history with and tell them you need a credit card for your business. The limit will be low since the business has no history, but it will go higher in time. Pay for all products on the business card, get paid by the advertiser to your business affiliate account.

When it comes down to doing taxes, your accountant should have an easy time with it. Plus if shit ever goes down, you are both covered.

 

[amateursurgeon]

Don't go into partnership wth him. He's an unknown quantity business wise, you're bringing all the expertise, and an equity partnership is a pita to walk away from if it goes tits up.

Either do as stmadeveloper says and mentor him for free (not a bad idea.... you'll gain a lot from the experience too), or do a trade with him: you will mentor him for x hours a week if he does y hours of gruntwork on your business.






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[stf_86]

Don't go into partnership wth him. He's an unknown quantity business wise, you're bringing all the expertise, and an equity partnership is a pita to walk away from if it goes tits up.

Either do as stmadeveloper says and mentor him for free (not a bad idea.... you'll gain a lot from the experience too), or do a trade with him: you will mentor him for x hours a week if he does y hours of gruntwork on your business.

^^^ this OR

Just give him some resources to learn AM/IM on his own and do whatever he likes.
I`ve been in a partnership with 2 friends ... both failed miserably. I dont even talk to them anymore...
If you want something done right ... do it yourself.