How should I go about looking for partners for an already established product?
I have a product that is earning about $600-800 in MRR for the last few years, with about $200-300 in monthly costs. I believe the product has a lot of space to grow, so I want to bring on a partner who is skilled in the marketing/sales side of things. I'm not sure what the best way to do so is though with regards to equity and profit sharing. Should I ask for potential partners to purchase equity based on existing revenue or profit? Should the equity be vested? Should part of the agreement be that all profits will be reinvested into the company for the next X years?
I know there are generally accepted principles for people who are starting brand new products, but this is a little different.
Any resources, tips, or past experiences would be really helpful. Thanks!
If it was me, I'd pay someone to help you. Someone you think might make a good fit to have shares, but by working together without long term commitment you have the choice and chance to see how working with said person really is.
@rosiesherry thanks so much for your valuable advice! So the idea is to find someone on a contract basis, and if I like their work and think I could partner up, at that point offer some equity?
Yes, that's what I would do (it's the only way that has worked for me).
Of course, my way, isn't the only way :)
Congrats on the early traction!
I think you have to consider what the possible partner will bring to the table in terms of future revenue/profits/growth. Having $800 MRR for a while is nice, and thinking about splitting that $800 with someone new is a little tough.
I'd say, put it out there (you already took the first step) and talk it over with people who may bring value beyond what you have already achieved 👍
PS. Those talks should include some sort of an agreement on expectations and/or vesting
Thanks! I'm happy with what I've gotten to so far but also frustrated with the lack of growth. 😅
When you say put it out there, what do you mean? I don't think I follow. 🤔
I mean a link to the project so that suitors can take a look at what you have built and gauge if they can/willing to participate
Hey @yj,
I think you could probably go this a few different routes:
Ask someone to buy in. This is probably the easiest. But you want to make sure that you guys have the same idea for the end goal and what that looks like specifically.
Ask for sweat equity, based on a vesting period. Maybe not 2 years though because that is quite long for such a small amount of MRR (in comparison to other opportunities)
You could take the additional funds and hire someone to help draft a marketing strategy and get it implemented. It's not as good as a cofounder who thinks about your business more like an owner, but it may be cheaper from an equity standpoint.
Happy to chat more about these. Shoot me an email (in the profile) and maybe something will work out.