Partnership - what % profit split

[steve-bead]

Hi everyone,

Im looking at going into buisness with a friend of mine who's an artist - he will produce the artwork and i will market it and do all the business type things.

I've got lots of ideas and think this could be pretty successfull (fingers crossed) - and at the moment he is doing very little in terms of sales so it should be a win win for both of us.

The only thing im not sure about is how to split the profits. I would like a straight 50/50 and believe that is fair to both of us, but just thought id ask for any other opinions before i propose that figure.

Thoughts anyone?

All the best

Steve

[janetdc]

I guess if your artist friend takes out the cost of his/her time and materials prior to splitting 50/50 then it might work. If you expected a straight 50/50 from selling price I wouldn't think your offer would be so attractive.:)

[ladyluckjewellery]

I think a straight 50/50 split seems fair on the surface, you friend will have time / materials cost involved in producing the work, but you will also incur time / marketing costs as well.

The other option is to each take out your actual (i.e. receipted costs / materials / advertising / stall / brochure costs) from the selling price, and then split the profit 50/50 which will cover your time and a little extra. That way if one of you incurs more cost than the other your costs will still be covered.

Claire

[sandart]

keep greed out of it if u wana both make it

see what you are both happy with and work on that

i think u know what i mean :)

[steve-bead]

Yes - ill try and avoid greed !

Thanks for the replies everyone, ill see if the project gets off the ground or not!

All the best

Steve

[splatcat]

I'm sure you've thought of it already but do get it all put down in writing .... friendship can often be ruined by going into business together!