My horrible business venture into adverse.co

digga121

ajaxking
Jul 25, 2008
745
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0
socialsnipe.com
First, before you read I know.. this is my fault. I just would like to share my experience for those of you that are in a partnership, or thinking about getting in one. Some of you guys know me, and met me in Vegas back in 2009. That was about the time I was getting my Wordpress services up and running. I had a thread in the buy/sell that was getting a lot of exposure, so I put on my at the time 'friend' who had no website experience whatsoever, and claimed he had business knowledge. After success with these services we formed a company called Adverse. We had an LLC in place but no operating agreement. He had said it would be difficult putting one together because of our situation of being friends. He also said he would be registered agent as LLC and not partnership due to my credit past. I now see through all these lies. I had spent 2 years supplying my talent, expertise and dedication to get the site and company where it was taking very limited pay. The reason , was I was in it for the long term, branding. I have a 4 year degree and over 8 years in web dev experience so I can write some code to say the least. He was the ''business" side so he took care of the finances, and handled the servers while I did most of the websites, besides puny theme installs. Fast forward to 4 months ago, I get a LONG email telling me how I screwed up a client in which he claimed was 75% of the income, which later turned and proved out to be totally false. Oh and also said I never went down to the office, in which we had for a week and was his idea, plus I had no car and was working and generating income for the business while he was sitting at the office doing his 'business' aspects of the company. He was now 'laying me off' my own company. On this day he disabled my email of sam@adverse.co and changed my password to ALL of my client sites. I can't tell you the frustration of not being able to get into your own sites that you worked hard on for the past 2 years. To top it all off, I agreed to hire his brother as a developer, and after talking to my lawyer find out he removed me from the LLC and put his brother in place. Luckily I have a good lawyer and got my name back on the LLC. I officially served him with a c&d, and demanded passwords back and still have not heard anything from the guy, so looks like he's just planning to hope I go away and now need to deal in more legal fees. They even developed some new site and even stole my content I wrote from the old site and put it in the new one. My mistake was trusting a friend in business without a contract. My girlfriend told me numerous times that this would happen, and I brushed it off because I felt I knew the guy. She claims he was 'grooming' me all along, which could be true. Anyway, I just wanted to post this since this is where my services started and incase anyone out these is thinking about partnerships, clear contracts would definitely be my recommendation, although with this situation I don't even know if it would of mattered that much. I have so much proof that I am the co owner it's rediculous. I'm much better off now, everything happens for a reason kind of thing but I just wish that it didn't go down like this. It's one thing to get laid off from you job, but another to get laid off of your own company!

Thanks for listening.
Sam
 


First, before you read I know.. this is my fault. I just would like to share my experience for those of you that are in a partnership, or thinking about getting in one. Some of you guys know me, and met me in Vegas back in 2009. That was about the time I was getting my Wordpress services up and running. I had a thread in the buy/sell that was getting a lot of exposure, so I put on my at the time 'friend' who had no website experience whatsoever, and claimed he had business knowledge. After success with these services we formed a company called Adverse. We had an LLC in place but no operating agreement. He had said it would be difficult putting one together because of our situation of being friends. He also said he would be registered agent as LLC and not partnership due to my credit past. I now see through all these lies. I had spent 2 years supplying my talent, expertise and dedication to get the site and company where it was taking very limited pay. The reason , was I was in it for the long term, branding. I have a 4 year degree and over 8 years in web dev experience so I can write some code to say the least. He was the ''business" side so he took care of the finances, and handled the servers while I did most of the websites, besides puny theme installs. Fast forward to 4 months ago, I get a LONG email telling me how I screwed up a client in which he claimed was 75% of the income, which later turned and proved out to be totally false. Oh and also said I never went down to the office, in which we had for a week and was his idea, plus I had no car and was working and generating income for the business while he was sitting at the office doing his 'business' aspects of the company. He was now 'laying me off' my own company. On this day he disabled my email of sam@adverse.co and changed my password to ALL of my client sites. I can't tell you the frustration of not being able to get into your own sites that you worked hard on for the past 2 years. To top it all off, I agreed to hire his brother as a developer, and after talking to my lawyer find out he removed me from the LLC and put his brother in place. Luckily I have a good lawyer and got my name back on the LLC. I officially served him with a c&d, and demanded passwords back and still have not heard anything from the guy, so looks like he's just planning to hope I go away and now need to deal in more legal fees. They even developed some new site and even stole my content I wrote from the old site and put it in the new one. My mistake was trusting a friend in business without a contract. My girlfriend told me numerous times that this would happen, and I brushed it off because I felt I knew the guy. She claims he was 'grooming' me all along, which could be true. Anyway, I just wanted to post this since this is where my services started and incase anyone out these is thinking about partnerships, clear contracts would definitely be my recommendation, although with this situation I don't even know if it would of mattered that much. I have so much proof that I am the co owner it's rediculous. I'm much better off now, everything happens for a reason kind of thing but I just wish that it didn't go down like this. It's one thing to get laid off from you job, but another to get laid off of your own company!

Thanks for listening.
Sam

Thanks for your story sam! I for one can see there is a lesson in this story and I will learn from it!
Thanks!
 
Everyone successful in business has said it through the ages, Here goes...

Never ever get into business with family or friends, EVER.

First flag, no contract. 2nd flag, no partnership as an LLC, 3rd flag no access or control of finances of your company. You always need to be in control of bank accounts and know everyday what's going on financially. If you don't your leaving someone else in control. I am assuming you were not on the bank account, since if you were he would not have thought of pulling this stunt. There are banks that don't allow someone to take out more then X amount of dollars without all partners being present. I could go on, but it would be too long of a post.

Just never do business with family and friends, NEVER!
 
Everyone successful in business has said it through the ages, Here goes...

Never ever get into business with family or friends, EVER.

Just never do business with family and friends, NEVER!

This a thousand times over. Another tip : Lend only that much money to friends/family you can afford to loose. Never expect anything back, if it comes back, it's your luck and they are good people, but be skeptical.

Sincerely,

- Someone who got screwed by a family member.
 
@CCarter ..I heard this advice before too, so many flags ..oh did you say more? sorry my eyes wandered to your signature and it stayed there. Could be the best sig ever lol. .. but yeah totally , I will never get involved with family or friends with business ever again, so true. Thanks for the reply
 
@ OP - hope this was a valuable learning experience for you and you don't repeat the past.

next time - hire people to do tasks so you are in 100% control.
 
Yes, but they are usually inherited businesses where kins distribute businesses and different people manage different subsidiaries.

There's a convenience store a mile from my house that's a family business, it wasn't inherited, and there are no subsidiaries that I'm aware of. Every member of the family (extended) is involved to one degree or another, and it seems to work out quite well for them.

My point was that it's not the nature of the pre-existing relationships that complicate a business venture, but rather a failure to clearly define the new roles that will need to be assumed that can cause problems down the road.
 
Even though you don't have access to your email now did you use thunderbird to access your account? You should have a huge offline cache of communications with this guy over the years. Also Skype, click the furthest in the past it goes (1 year I think?) and copy paste all those logs in a word document as well.

This guy probably built an excellent case against himself if you're able to get those communications.
 
Even though you don't have access to your email now did you use thunderbird to access your account? You should have a huge offline cache of communications with this guy over the years. Also Skype, click the furthest in the past it goes (1 year I think?) and copy paste all those logs in a word document as well.

This guy probably built an excellent case against himself if you're able to get those communications.

Thanks for the reply! ...yeah, I have every email and skype on my PC, laptop and cell. I have no idea what he's thinking. Multiple emails of him calling me his 'business partner' , even have a chat right from the beginning that states him replying to me 'we need a name for services'. He threatened that he was going to sue me for 'software malpractice' because of some bugs in one our clients sites , in which I fixed, if I was to peruse this. He had no web development skills until he met me, which I had over 5 years in it before we even started, now he's a web professional.
 
You have a serious partnership problem dont you...if i recall this isnt the only partnership/company you had end badly...
 
Thanks for the reply! ...yeah, I have every email and skype on my PC, laptop and cell. I have no idea what he's thinking. Multiple emails of him calling me his 'business partner' , even have a chat right from the beginning that states him replying to me 'we need a name for services'. He threatened that he was going to sue me for 'software malpractice' because of some bugs in one our clients sites , in which I fixed, if I was to peruse this. He had no web development skills until he met me, which I had over 5 years in it before we even started, now he's a web professional.

Its easy to get emotionally involved and get obsessed with the details and evidence proving you are "right" in disputes.

In fact almost noone will really care about the details except you and maybe the other guy.

Is the business actually worth anything? I.e. Is it generating a large amount of profit right now? Or is it just the "idea" and the years of work that you are annoyed about?

If its the latter or only generating a small profit, just screw him and leave it, if the former then get a good lawyer and be prepared to spend a fair amount to prove you own it or deserve a financial settlement for a business that you own and is profitable by $x/year.
 
You have a serious partnership problem dont you...if i recall this isnt the only partnership/company you had end badly...

What's up Adhusler!

My other one did not end badly. The other one, my partner just wanted out of the company and had offered me to buy him out. He did not change my passwords, send me threats and ignore me. He handled it very professional. To this day I am friends with the other one and actually just talked to him 10 minutes ago.

This one right here, was downright wrong.
 
This a thousand times over. Another tip : Lend only that much money to friends/family you can afford to loose. Never expect anything back, if it comes back, it's your luck and they are good people, but be skeptical.

Sincerely,

- Someone who got screwed by a family member.

From Shakespeare's Hamlet, back in the year 1602:
Polonius (to his son, Laertes):
Neither a borrower nor a lender be;
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.
 
ad·verse

/adˈvərs/
Adjective
Preventing success or development; harmful; unfavorable: "adverse weather conditions".

Synonyms
contrary - inimical - opposite - unfavorable - hostile



how you name the ship - it's how it will swim (proverb)

thanks for the lesson