hi I’m Evan Carmichael welcome to another edition of ask Evan in today’s
another edition of ask Evan in today’s
another edition of ask Evan in today’s episode I’m going to answer a question
episode I’m going to answer a question
episode I’m going to answer a question from one of my four meters Michael who’s
from one of my four meters Michael who’s
from one of my four meters Michael who’s asking about giving equity away to start
asking about giving equity away to start
asking about giving equity away to start his business up so he is create a new
his business up so he is create a new
his business up so he is create a new web-based business and needs to get a
web-based business and needs to get a
web-based business and needs to get a program on board to create a script for
program on board to create a script for
program on board to create a script for him and he wants to give a piece of the
him and he wants to give a piece of the
him and he wants to give a piece of the company away in exchange for creating
company away in exchange for creating
company away in exchange for creating that script and is wondering how to do
that script and is wondering how to do
that script and is wondering how to do it what’s involved my advice etc so
it what’s involved my advice etc so
it what’s involved my advice etc so Michael I’d be really concerned about
Michael I’d be really concerned about
Michael I’d be really concerned about giving away a piece of equity to
giving away a piece of equity to
giving away a piece of equity to somebody you don’t know it’s really
somebody you don’t know it’s really
somebody you don’t know it’s really really hard it’s like getting married
really hard it’s like getting married
really hard it’s like getting married having a good partnership is like having
having a good partnership is like having
having a good partnership is like having a good life and it’s something that you
a good life and it’s something that you
a good life and it’s something that you are in for a long period of time so you
are in for a long period of time so you
are in for a long period of time so you want to make sure you get the right
want to make sure you get the right
want to make sure you get the right person who will be an ongoing
person who will be an ongoing
person who will be an ongoing contributing success factor to your
contributing success factor to your
contributing success factor to your business if you’re concerned about not
business if you’re concerned about not
business if you’re concerned about not being able to pay him because you don’t
being able to pay him because you don’t
being able to pay him because you don’t have money then you might want to work
have money then you might want to work
have money then you might want to work out another arrangement and I’ll talk
out another arrangement and I’ll talk
out another arrangement and I’ll talk about that quickly if you really wanted
about that quickly if you really wanted
about that quickly if you really wanted to do the equity side then you would
to do the equity side then you would
to do the equity side then you would need a lawyer need to set up a
need a lawyer need to set up a
need a lawyer need to set up a corporation you need to have shares you
corporation you need to have shares you
corporation you need to have shares you need to figure out how much you’re going
need to figure out how much you’re going
need to figure out how much you’re going to give him I always try to make those
to give him I always try to make those
to give him I always try to make those equity deals kind of opt-in so you you
equity deals kind of opt-in so you you
equity deals kind of opt-in so you you earn in your equity as you produce
earn in your equity as you produce
earn in your equity as you produce results so you know there’s a script
results so you know there’s a script
results so you know there’s a script that he has to create for you then once
that he has to create for you then once
that he has to create for you then once the script is creatively gets five
the script is creatively gets five
the script is creatively gets five percent of the business and you know if
percent of the business and you know if
percent of the business and you know if it delivers the results that you’re
it delivers the results that you’re
it delivers the results that you’re hoping for then you guess another five
hoping for then you guess another five
hoping for then you guess another five percent or whatever it is you have to
percent or whatever it is you have to
percent or whatever it is you have to make sure that there’s kind of
make sure that there’s kind of
make sure that there’s kind of milestones in there so he doesn’t just
milestones in there so he doesn’t just
milestones in there so he doesn’t just have equity in your business and you
have equity in your business and you
have equity in your business and you have a you know shareholder who doesn’t
have a you know shareholder who doesn’t
have a you know shareholder who doesn’t do anything for your company as you grow
do anything for your company as you grow
do anything for your company as you grow but my preferred way to do this if you
but my preferred way to do this if you
but my preferred way to do this if you can’t afford to pay em up front would be
can’t afford to pay em up front would be
can’t afford to pay em up front would be to have some kind of Prophet chair for
to have some kind of Prophet chair for
to have some kind of Prophet chair for that one product line so your company
that one product line so your company
that one product line so your company may end up doing a lot of other things
may end up doing a lot of other things
may end up doing a lot of other things as well and now you have this this one
as well and now you have this this one
as well and now you have this this one person owning a piece of it without
person owning a piece of it without
person owning a piece of it without doing any other work on going if you
doing any other work on going if you
doing any other work on going if you could do a profit chair for this one
could do a profit chair for this one
could do a profit chair for this one product so make them believe in your
product so make them believe in your
product so make them believe in your abilities to market this new web startup
abilities to market this new web startup
abilities to market this new web startup and say 45 years of 10 years or lifetime
and say 45 years of 10 years or lifetime
and say 45 years of 10 years or lifetime whatever it is you’re going to give him
whatever it is you’re going to give him
whatever it is you’re going to give him twenty percent or fifty percent or
twenty percent or fifty percent or
twenty percent or fifty percent or whatever it is of the profits from that
whatever it is of the profits from that
whatever it is of the profits from that product then that’s a lot easier to be
product then that’s a lot easier to be
product then that’s a lot easier to be able to do they don’t have any
able to do they don’t have any
able to do they don’t have any decision-making power in the business
decision-making power in the business
decision-making power in the business they don’t have any minority shareholder
they don’t have any minority shareholder
they don’t have any minority shareholder right so you have to worry about you
right so you have to worry about you
right so you have to worry about you have to worry about them selling their
have to worry about them selling their
have to worry about them selling their share to your competitor and you know
share to your competitor and you know
share to your competitor and you know snooping on what you’re doing and they
snooping on what you’re doing and they
snooping on what you’re doing and they don’t have any decision-making power
don’t have any decision-making power
don’t have any decision-making power which you might have to worry about if
which you might have to worry about if
which you might have to worry about if you have somebody doesn’t really know
you have somebody doesn’t really know
you have somebody doesn’t really know what they’re doing with business so
what they’re doing with business so
what they’re doing with business so that’s would be my preferred route is
that’s would be my preferred route is
that’s would be my preferred route is some kind of profit share plan only for
some kind of profit share plan only for
some kind of profit share plan only for that one product line for X number of
that one product line for X number of
that one product line for X number of years and the amount that they get is
years and the amount that they get is
years and the amount that they get is maybe in relation to how much value
maybe in relation to how much value
maybe in relation to how much value they’re going to be able to add and
they’re going to be able to add and
they’re going to be able to add and potentially if there is going to be any
potentially if there is going to be any
potentially if there is going to be any ongoing component to it so do they have
ongoing component to it so do they have
ongoing component to it so do they have to update that script you know if you’re
to update that script you know if you’re
to update that script you know if you’re a web based business and you’re not a
a web based business and you’re not a
a web based business and you’re not a programming yourself you may need
programming yourself you may need
programming yourself you may need somebody as part of that experience on
somebody as part of that experience on
somebody as part of that experience on going to do the help you continue to add
going to do the help you continue to add
going to do the help you continue to add to your product line so I hope that
to your product line so I hope that
to your product line so I hope that helps if you have any questions please
helps if you have any questions please
helps if you have any questions please leave a comment below and for everybody
leave a comment below and for everybody
leave a comment below and for everybody else I’d love to hear what you have to
else I’d love to hear what you have to
else I’d love to hear what you have to think about if you want to leave a
think about if you want to leave a
think about if you want to leave a comment under the video and I always
comment under the video and I always
comment under the video and I always appreciate thumbs up if you want to give
appreciate thumbs up if you want to give
appreciate thumbs up if you want to give them helps me make more of these videos
them helps me make more of these videos
them helps me make more of these videos and hours you’re energized when I see
and hours you’re energized when I see
and hours you’re energized when I see that somebody slept a thumbs up in the
that somebody slept a thumbs up in the
that somebody slept a thumbs up in the video so thank you for that so much and
video so thank you for that so much and
video so thank you for that so much and hopefully I’ll see you in the next
hopefully I’ll see you in the next
hopefully I’ll see you in the next episode
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