part ownership versus consulting rate

[Development House]

I am looking at a development opportunity that will offer part ownership of
the company in lieu or a consulting rate, which will also include drawing a
salary once the project goes live and generates an income stream.

I would really be interested in  hearing from anyone who has pursued this
route and your experiences and recommendations, as well as anyone else on
the list with any thoughts.

Thanks,

Jerry


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Re: part ownership versus consulting rate

[Cameron Childress]

On Sun, Aug 10, 2008 at 3:17 PM, Development House
<[EMAIL PROTECTED]> wrote:
> I am looking at a development opportunity that will offer part ownership of
> the company in lieu or a consulting rate, which will also include drawing a
> salary once the project goes live and generates an income stream.
>
> I would really be interested in  hearing from anyone who has pursued this
> route and your experiences and recommendations, as well as anyone else on
> the list with any thoughts.

In my opinion, unless you have direct influence over the success of
the company, ownership in it isn't worth sacrificing salary.  If you
don't have any control, and the idea is really worthwhile - it should
be able to obtain the funding required to pay you a fair rate.

Generally, its a good idea to draw a salary that covers your pay
expectations and consider anything more than that just an imaginary
thing till it comes through.  Equally, if you do accept ownership in
lieu of pay you should consider any expected pay raises an imaginary
thing - they may never happen.

-Cameron

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Re: part ownership versus consulting rate

[Maureen]

Are you confident that this is a viable money maker?  If so, make sure
you get everything in writing and have an attorney review it for you.
Don't trust the others to do right by you, even if they are friends.
(this is especially true if the company you are dealing with is in Atlanta)

On Sun, Aug 10, 2008 at 12:17 PM, Development House
<[EMAIL PROTECTED]> wrote:
> I am looking at a development opportunity that will offer part ownership of
> the company in lieu or a consulting rate, which will also include drawing a
> salary once the project goes live and generates an income stream.
>
> I would really be interested in  hearing from anyone who has pursued this
> route and your experiences and recommendations, as well as anyone else on
> the list with any thoughts.

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Re: part ownership versus consulting rate

[Cameron Childress]

On Sun, Aug 10, 2008 at 3:42 PM, Maureen <[EMAIL PROTECTED]> wrote:
> Are you confident that this is a viable money maker?  If so, make sure
> you get everything in writing and have an attorney review it for you.
> Don't trust the others to do right by you, even if they are friends.
> (this is especially true if the company you are dealing with is in Atlanta)

Note to self: make sure to Maureen sometime for the backstory on this comment.

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Re: part ownership versus consulting rate

[Development House]

Thank you both for your input.

@ Maureen - I am confident of the concept and the outlook, and an attorney
reviewed contract would be a definite. (not Atlanta)

@ Cameron - Good point to make sure I have input on the creation of the
product (which I do) as well as business decisions as far as the direction
of the product. Historically, I have passed on these situations and opted
for the "pay me now" option, but we are already involved with the project
and have more insight available to us.

Jerry

On Sun, Aug 10, 2008 at 3:42 PM, Maureen <[EMAIL PROTECTED]> wrote:

> Are you confident that this is a viable money maker?  If so, make sure
> you get everything in writing and have an attorney review it for you.
> Don't trust the others to do right by you, even if they are friends.
> (this is especially true if the company you are dealing with is in Atlanta)
>
> On Sun, Aug 10, 2008 at 12:17 PM, Development House
> <[EMAIL PROTECTED]> wrote:
> > I am looking at a development opportunity that will offer part ownership
> of
> > the company in lieu or a consulting rate, which will also include drawing
> a
> > salary once the project goes live and generates an income stream.
> >
> > I would really be interested in  hearing from anyone who has pursued this
> > route and your experiences and recommendations, as well as anyone else on
> > the list with any thoughts.
>
> 

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Re: part ownership versus consulting rate

[Jeffry Houser]

 I was thinking the same thing about the Maureen's Atlanta backstory.  
That said...

 A lot of people have approached me over the years wanting me me to be 
their partner in business, and/or to work for a portion of the profits.  
I discovered that asking them for a business plan was a quick way to 
never hear from them again. 

 As a business owner, I can tell you that it is very easy to create a 
company that has income, but no profit.  As an example, has YouTube made 
enough to pay for their bandwidth costs yet?  Most likely, you'll spend 
more time and money on lawyer contract negotiating than you will ever 
walk away with.


Cameron Childress wrote:
> On Sun, Aug 10, 2008 at 3:42 PM, Maureen <[EMAIL PROTECTED]> wrote:
>   
>> Are you confident that this is a viable money maker?  If so, make sure
>> you get everything in writing and have an attorney review it for you.
>> Don't trust the others to do right by you, even if they are friends.
>> (this is especially true if the company you are dealing with is in Atlanta)
>> 
>
> Note to self: make sure to Maureen sometime for the backstory on this comment.
>   


-- 
Jeffry Houser
Flex, ColdFusion, AIR
AIM: Reboog711  | Phone: 1-203-379-0773
--
Adobe Community Expert 

My Company:  
My Podcast: 
My Blog:  



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Re: part ownership versus consulting rate

[Maureen]

It's not a very complex story.  I trusted my so-called partners to do
the right thing, didn't force the issue when they kept postponing
signing a contract, and when the product, which was both my idea and
my work,  became profitable, they shoved me out the door and claimed
it as their own.  I could sue them but I decided to just go on with my
life and learn from my mistakes.  I'm a strong believer in Karma.  But
I do like to give a head's up to anyone that might potentially be
their next victim.  Hence the warning.  It doesn't matter which
company it is.  The lesson is the same.  Get it in writing.

On Sun, Aug 10, 2008 at 8:18 PM, Jeffry Houser <[EMAIL PROTECTED]> wrote:
>  I was thinking the same thing about the Maureen's Atlanta backstory.
> That said...
>
>  A lot of people have approached me over the years wanting me me to be
> their partner in business, and/or to work for a portion of the profits.
> I discovered that asking them for a business plan was a quick way to
> never hear from them again.
>
>  As a business owner, I can tell you that it is very easy to create a
> company that has income, but no profit.  As an example, has YouTube made
> enough to pay for their bandwidth costs yet?  Most likely, you'll spend
> more time and money on lawyer contract negotiating than you will ever
> walk away with.
>
>
> Cameron Childress wrote:
>> On Sun, Aug 10, 2008 at 3:42 PM, Maureen <[EMAIL PROTECTED]> wrote:
>>
>>> Are you confident that this is a viable money maker?  If so, make sure
>>> you get everything in writing and have an attorney review it for you.
>>> Don't trust the others to do right by you, even if they are friends.
>>> (this is especially true if the company you are dealing with is in Atlanta)
>>>
>>
>> Note to self: make sure to Maureen sometime for the backstory on this 
>> comment.
>>
>
>
> --
> Jeffry Houser
> Flex, ColdFusion, AIR
> AIM: Reboog711  | Phone: 1-203-379-0773
> --
> Adobe Community Expert 
> 
> My Company: 
> My Podcast: 
> My Blog: 
>
>
>
> 

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date
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RE: part ownership versus consulting rate

[Duane]

Been there!


-Original Message-
From: Maureen [mailto:[EMAIL PROTECTED] 
Sent: Monday, August 11, 2008 2:28 PM
To: CF-Jobs-Talk
Subject: Re: part ownership versus consulting rate

It's not a very complex story.  I trusted my so-called partners to do
the right thing, didn't force the issue when they kept postponing
signing a contract, and when the product, which was both my idea and
my work,  became profitable, they shoved me out the door and claimed
it as their own.  I could sue them but I decided to just go on with my
life and learn from my mistakes.  I'm a strong believer in Karma.  But
I do like to give a head's up to anyone that might potentially be
their next victim.  Hence the warning.  It doesn't matter which
company it is.  The lesson is the same.  Get it in writing.

On Sun, Aug 10, 2008 at 8:18 PM, Jeffry Houser <[EMAIL PROTECTED]> wrote:
>  I was thinking the same thing about the Maureen's Atlanta backstory.
> That said...
>
>  A lot of people have approached me over the years wanting me me to be
> their partner in business, and/or to work for a portion of the profits.
> I discovered that asking them for a business plan was a quick way to
> never hear from them again.
>
>  As a business owner, I can tell you that it is very easy to create a
> company that has income, but no profit.  As an example, has YouTube made
> enough to pay for their bandwidth costs yet?  Most likely, you'll spend
> more time and money on lawyer contract negotiating than you will ever
> walk away with.
>
>
> Cameron Childress wrote:
>> On Sun, Aug 10, 2008 at 3:42 PM, Maureen <[EMAIL PROTECTED]> wrote:
>>
>>> Are you confident that this is a viable money maker?  If so, make sure
>>> you get everything in writing and have an attorney review it for you.
>>> Don't trust the others to do right by you, even if they are friends.
>>> (this is especially true if the company you are dealing with is in
Atlanta)
>>>
>>
>> Note to self: make sure to Maureen sometime for the backstory on this
comment.
>>
>
>
> --
> Jeffry Houser
> Flex, ColdFusion, AIR
> AIM: Reboog711  | Phone: 1-203-379-0773
> --
> Adobe Community Expert
<http://www.adobe.com/communities/experts/members/JeffryHouser.html>
> My Company: <http://www.dot-com-it.com>
> My Podcast: <http://www.theflexshow.com>
> My Blog: <http://www.jeffryhouser.com>
>
>
>
> 



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