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GrAveTzT · 03-20-2008, 03:45 AM

THE BUYOUT VOTING SYSTEM.

This is a very important part of a partnership. This ensures a fair way out for yourself as well as taking out an unrespectable party member. This business plan is not for a 2 person partnership. This is recommended for a 3 to 6 person team. You may find this part to be a little mean, but it makes things run smooth overall. You and your team can use this method as far as 5 years into the online business. It even works out if there is a leader or someone who is initially in charge. The truth is you need the ability to kick others out of the business because it keeps you motivated to do your part, as well as offers security if someone isn’t good enough for the business.

The buyout/vote out contract system
(An example that’s good is if 4 people invested $200 each)

1. If there is a leader (original creator), he/she can be bought out of the company for 15X the current monthly profit. In the contract you have to set a few ground rules. There can be no buyouts in less than 6 months from the beginning of the launch. In the contract you’ll have to put in the leader if there is one. A good example of someone that really qualifies as a leader would be if a person already has the website, domain and idea or others are not starting up a project, but joining it. They could do the site without you, but preferred a team on the project. This person isn’t the boss. It’s just a matter of their value for another partner purchasing them out is a little more money to make it fair because they forked out more in the beginning of the online business. In simple words anyone can buy someone’s part in the partnership. They are not allowed to buy a portion of them, though. It has to be full buyout. There doesn’t need to really be a reason as well. Since it is such a high price the person being bought out is not really losing. The buyer can be one person which means they will own his/her part of the profit. It does not make this person powerful or in charge. Also, all three others can come to an agreement and split of cost to take out this person in which everything will be even. The person bought out must take their cash and walk. No complaining, no crying, just walk. There does not need to be a reason given or anything but the money. This is not a matter of personal grudge. It’s a system of business to ensure the survival of a business. Think of it as the sitcom “Survival” on TV. If you are not good you can be voted away from the island, however there is the possibility that you’ll be kicked off anyway if you are doing your part. You will not walk away broke. You will have made a lot of money from the break, and can move on to another project with a lot of money.
2. Partners who are not the leader can be bought out in the exact same way, but their buyout price is his full investment in total (through the months) and an additional 10X the current monthly revenue.
3. Since the monthly/weekly meetings have already been agreed in the contract each partner is bonded by being at them. If one investor/partner seems to be missing every meeting then they have the risk to be bought out by the team. In the contract you need to set how many times in a year or quarter the person has to miss before they are in this risk. Let’s say that the agreement was for 1 meeting on Thursday 6:00pm EST for 1 hour+. In the contract you all agreed on this time initially and you all agreed that missing 3 meeting (or being late each time by more than 15min) out of 8 in two months will put you at risk. Now let’s say its 6 months later and it seems that “Little Joey” isn’t very motivated to these meetings and doesn’t bother to go to them half of the time. Once he has reached 3 within a two month span then he is at risk. This means that the other partners can buy him out, but this is different. “Little Joey” does not receive 10X the monthly revenue. Joey only will receive 4X the monthly profit of the business. He will walk away with not much in his hand. The other partners have lost a useless unmotivated guy who’s just in the way taking a chunk of profits and it didn’t cost them much.
4. Upon the transaction of control and money the partnership should be obliged to use a “middle man”. There are major companies that will take a large amount of money for a group and hold it until everyone is happy, then give it up once everything is complete. You wouldn’t want to buy someone out who is the only person who has access to the domain and give them the money. It’s much better to give the Coin to a company that will hold it until you tell them to give it up. Some of these companies actually will require the full story and ensure the transaction has been complete before throwing the money at the concluded person.

THIS IS THE END OF MY BUSINESS PLAN.

Now you have the knowledge to write an excellent fool proof contract to live by. Since every online partnership is different your contract will never be the same. You can add, modify, and make a few changes here and there. Once you all agree on the whole thing after a bunch of talking you can start the next eBay together. This contract is great for many things. It will scare untrustworthy people away before even getting to first base, and will eliminate the lazy person who is dragging down the profit and doing nothing. This is a competitive contract but it keeps people in place. Chances are you will never need to worry about being bought out unless you actually should be because your whole team will not want to pay big bucks to get rid of a good asset to the business. That would be stupid. Of course there is a chance of a little greed where someone could decide to buy you out just because they want your share of the profit, but you have to understand that you will have made a lot of money if that were to happen.

Please rate this Article as I’ve spent a great deal thinking about this topic and coming up with a more secure partnership.
What do you think of all of this?

Questions, Comments, anything to add?

03-20-2008, 03:45 AM	#2 (permalink)
GrAveTzT Junior Member Join Date: 11-14-06 Posts: 24 iTrader: 0 / 0% Latest Blog: None	THE BUYOUT VOTING SYSTEM. This is a very important part of a partnership. This ensures a fair way out for yourself as well as taking out an unrespectable party member. This business plan is not for a 2 person partnership. This is recommended for a 3 to 6 person team. You may find this part to be a little mean, but it makes things run smooth overall. You and your team can use this method as far as 5 years into the online business. It even works out if there is a leader or someone who is initially in charge. The truth is you need the ability to kick others out of the business because it keeps you motivated to do your part, as well as offers security if someone isn’t good enough for the business. The buyout/vote out contract system (An example that’s good is if 4 people invested $200 each) 1. If there is a leader (original creator), he/she can be bought out of the company for 15X the current monthly profit. In the contract you have to set a few ground rules. There can be no buyouts in less than 6 months from the beginning of the launch. In the contract you’ll have to put in the leader if there is one. A good example of someone that really qualifies as a leader would be if a person already has the website, domain and idea or others are not starting up a project, but joining it. They could do the site without you, but preferred a team on the project. This person isn’t the boss. It’s just a matter of their value for another partner purchasing them out is a little more money to make it fair because they forked out more in the beginning of the online business. In simple words anyone can buy someone’s part in the partnership. They are not allowed to buy a portion of them, though. It has to be full buyout. There doesn’t need to really be a reason as well. Since it is such a high price the person being bought out is not really losing. The buyer can be one person which means they will own his/her part of the profit. It does not make this person powerful or in charge. Also, all three others can come to an agreement and split of cost to take out this person in which everything will be even. The person bought out must take their cash and walk. No complaining, no crying, just walk. There does not need to be a reason given or anything but the money. This is not a matter of personal grudge. It’s a system of business to ensure the survival of a business. Think of it as the sitcom “Survival” on TV. If you are not good you can be voted away from the island, however there is the possibility that you’ll be kicked off anyway if you are doing your part. You will not walk away broke. You will have made a lot of money from the break, and can move on to another project with a lot of money. 2. Partners who are not the leader can be bought out in the exact same way, but their buyout price is his full investment in total (through the months) and an additional 10X the current monthly revenue. 3. Since the monthly/weekly meetings have already been agreed in the contract each partner is bonded by being at them. If one investor/partner seems to be missing every meeting then they have the risk to be bought out by the team. In the contract you need to set how many times in a year or quarter the person has to miss before they are in this risk. Let’s say that the agreement was for 1 meeting on Thursday 6:00pm EST for 1 hour+. In the contract you all agreed on this time initially and you all agreed that missing 3 meeting (or being late each time by more than 15min) out of 8 in two months will put you at risk. Now let’s say its 6 months later and it seems that “Little Joey” isn’t very motivated to these meetings and doesn’t bother to go to them half of the time. Once he has reached 3 within a two month span then he is at risk. This means that the other partners can buy him out, but this is different. “Little Joey” does not receive 10X the monthly revenue. Joey only will receive 4X the monthly profit of the business. He will walk away with not much in his hand. The other partners have lost a useless unmotivated guy who’s just in the way taking a chunk of profits and it didn’t cost them much. 4. Upon the transaction of control and money the partnership should be obliged to use a “middle man”. There are major companies that will take a large amount of money for a group and hold it until everyone is happy, then give it up once everything is complete. You wouldn’t want to buy someone out who is the only person who has access to the domain and give them the money. It’s much better to give the Coin to a company that will hold it until you tell them to give it up. Some of these companies actually will require the full story and ensure the transaction has been complete before throwing the money at the concluded person. THIS IS THE END OF MY BUSINESS PLAN. Now you have the knowledge to write an excellent fool proof contract to live by. Since every online partnership is different your contract will never be the same. You can add, modify, and make a few changes here and there. Once you all agree on the whole thing after a bunch of talking you can start the next eBay together. This contract is great for many things. It will scare untrustworthy people away before even getting to first base, and will eliminate the lazy person who is dragging down the profit and doing nothing. This is a competitive contract but it keeps people in place. Chances are you will never need to worry about being bought out unless you actually should be because your whole team will not want to pay big bucks to get rid of a good asset to the business. That would be stupid. Of course there is a chance of a little greed where someone could decide to buy you out just because they want your share of the profit, but you have to understand that you will have made a lot of money if that were to happen. Please rate this Article as I’ve spent a great deal thinking about this topic and coming up with a more secure partnership. What do you think of all of this? Questions, Comments, anything to add?