I have a small startup which is doing decently well. We have been in business since one year now, and I can say that, for starters we have done good.
We have designed a new project which we believe can take us to the next step. However for this project we need people with strong influence in the beaurocracy. For this reason we are setting up a tie-up with this company which has a very strong influence in the beaurocracy and will provide my company with a definitive platform where I can launch our project.
However, what I want to know is what kind of conditions should I present in the MoU. I m esp.concerned with the revenue sharing part. Obviously we are going to give them a percentage of the gross amount. The gross will change with the size of any particular client that we get. So shud the % be dependent on the total invoice value. I mean more % for them for gross of 1000000 & less% for 200000.
How do I decide these values???
Comments (1)
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35 yrs exp in adv.
Having seen many affiliate programs and joint merged ventures, there are many variables to consider.
Without any specifics that your are obviously withholding, your company might consider using a net revenue platform instead.
Depending on the overhead involved on your end, and assuming that total invoices are still subject to other external factors that will further reduce the bottom line, it would make sense to offer a smaller percentage of a net result.
Consider that option.