Entering into a Joint Venture- need expert advice please

[RoanDog]

Hi- first post here. Been doing internet marketing for a few years though. I've just entered in to a joint venture with somebody from another internet marketing forum, and I was hoping for some outside perspective or advice because this is uncharted territory for me, given a few factors

A) we've never met. just chatted on skype, email, etc.
B) I've never done a joint venture with anyone. Just solo internet marketing projects.


He's implied that we split it 50/50. But there's no contract. Should I push for some type of online contract saying we own equal parts of the domain, data, social media accounts, etc. (basically the whole project)?

I proposed an LLC but he said not til revenues get higher, just to keep things simple for now.

Not sure if I'm being paranoid and should just chill out, or if I'm right to be a bit concerned about what might happen in the future w/ such an informal agreement to begin our relationship. Especially given the fact that our goal is to get bought out as an exit strategy

There are no revenues yet. Project started this week. I own the domain, so I guess I'm protected a bit in that sense. He owns all the servers and data. Is that a fair split? Is that enough to keep us both honest without a contract in place? It seems possible since he owns all the data, and I own the domain that will become more and more valuable as the data and brand is built out, and as people link to us.

Wanted outside thoughts though.

Really appreciate any advice from a business, legal, or just a common sense perspective.

[angienewton]

Welcome!

I would definitely get a contract in place. You're setting yourself up for disaster if you don't have one.

[Lynn Terry]

Welcome to the forum.

I agree with Angie. A contract is wise in any partnership. What if one of the partners should die before the goal is reached - what is the plan in that case? What are the responsibilities and expectations of each partner? Who receives payments and how are they split/disbursed? All things that should be agreed on in writing so there's no question how things should be handled.