Long time member of the forum and I have a question that I know only this forum can help me answer or at least reach a decision.
I have an acquaintance/ semi business partner that I would like to use his company's name and likeness and use his contact list to start a business. He has a 4 year old company that is well known in our area that specializes in a residential service. He has over 1,700 clients and I would like to tap into that list and start branching the company off into other residential service sectors. Without going into a lot of detail, he personally does not want to expand residentially, but commercially. So he is not looking to expand his service offerings. I want to pitch him the idea that I would use the brand name, likeness and client list and uphold the same level of service for exchange for...... fill in the blank. What should I offer? What is standard? A percentage of the business revenue? If so how much if he is literally doing none of the work, it is almost like a licensing deal, so 3 -5% or more like 10%? Is it more like a monthly or quarterly fee or a one time upfront payment? Or could it be any of the choosing above?
I really appreciate the feedback. The reason I am going this whole route of business growth is because I think it really breaks a lot of the barrier to entry with a residential startup company. He has a rock solid 1,700 happy clients in mostly upper middle class in a densely populated area. He brand name is getting stronger and the company has a stellar reputation.
Thanks
I have an acquaintance/ semi business partner that I would like to use his company's name and likeness and use his contact list to start a business. He has a 4 year old company that is well known in our area that specializes in a residential service. He has over 1,700 clients and I would like to tap into that list and start branching the company off into other residential service sectors. Without going into a lot of detail, he personally does not want to expand residentially, but commercially. So he is not looking to expand his service offerings. I want to pitch him the idea that I would use the brand name, likeness and client list and uphold the same level of service for exchange for...... fill in the blank. What should I offer? What is standard? A percentage of the business revenue? If so how much if he is literally doing none of the work, it is almost like a licensing deal, so 3 -5% or more like 10%? Is it more like a monthly or quarterly fee or a one time upfront payment? Or could it be any of the choosing above?
I really appreciate the feedback. The reason I am going this whole route of business growth is because I think it really breaks a lot of the barrier to entry with a residential startup company. He has a rock solid 1,700 happy clients in mostly upper middle class in a densely populated area. He brand name is getting stronger and the company has a stellar reputation.
Thanks
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