# Partnership Percentages



## kikkoman (Oct 30, 2007)

I am starting my company soon and will be doing a partnership. The question I have is that I am trying to figure out the best, industry average, of doing so. 

I will be running 90% of the business myself. Everything from wholesale, purchasing, labeling, hangtags, packaging, shipping, dealing with accounts, ect.

My partner, which happens to be my brother, has a large venue for promoting the product. The product centers around a very large radio audience that he promotes. My partner will be in charge of promoting the brand and driving traffic to the website. He also has access to numerous celeberties aimed right at our demographic. So as you can see now, he has a large hand in the success of the company. However like I said I will be running almost everything else. Including the website. The question is what do you people think is fair? A 50 50 split. A 75%- 25% divide? I need him to promote the product and he has very strong ties in doing so, but I will be doing almost all the work. What are you thoughts? How much do others pay for celebirty endorsements? What is the average marketing budget, percentage wise? 

I don't want to feel like I am cheating him in any way, but a huge chunk of the work being done by me, does that warrant me a much larger percentage? Should I write in a buyout clause?

Thanks.


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## Solmu (Aug 15, 2005)

kikkoman said:


> I will be doing almost all the work. What are you thoughts?


Can he take on more work, or is he busy with other engagements? One solution would be to hand over some of the fulfilment work to him: packing, stacking, warehousing, shipping, etc. - that way the work split is a little more even, and a 50/50 split becomes more equitable.



kikkoman said:


> Should I write in a buyout clause?


Sounds like a good idea.


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## TripleT (Apr 29, 2007)

A Buyout Agreement should be in every partnership.

The fact that this question is coming-up so late in the planning process is not a good sign. These issues need to be addressed, put in writing, and signed just as if you guys were not brothers.

It doesn't sound like there would be a company at all without his promotion ("I need him to promote..."), there's no way to tell from your post - but he might be thinking the same thing as you: should I give my brother 50% or is 25% good enough?

Best to sit down and get an agreement ASAP.


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## karlking85 (Sep 26, 2007)

Definitely go for the buyout. And on another note, how are the startup investments panned out? Are you both investing the same amount, are you investing more, less, etc. Time and money vested in the venture are both practical considerations.


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