Business Quandry - Thoughts
Discussion
We are happy to do a website for free on a revenue share over 12 months rolling basis however we charge for the design if required and this latest opportunity does need a decent designer circa £5k.
Brand owner does not want to pay a designer although they understand they need one and without one the site would not be as lucrative as it could be. (which is very lucrative we would hope for mid 5 figures year one).
Query is we would be in for the labour rate of the site, its a risk we are prepared to take but the designer is a hard cash payout that could be higher than £5k and we have less appetite to risk this as well.
Options I see are to absorb it, to knock it back and possibly lose the opportunity or to get the first £xk takings on the website which would happen but is messy.
Anyone think of any other options - their margin is a few hundred % av order value guesstimate £75
-- Please dont say revenue share is a mugs game etc its our mo and its starting to work very well on the 2 clients currently live.
Brand owner does not want to pay a designer although they understand they need one and without one the site would not be as lucrative as it could be. (which is very lucrative we would hope for mid 5 figures year one).
Query is we would be in for the labour rate of the site, its a risk we are prepared to take but the designer is a hard cash payout that could be higher than £5k and we have less appetite to risk this as well.
Options I see are to absorb it, to knock it back and possibly lose the opportunity or to get the first £xk takings on the website which would happen but is messy.
Anyone think of any other options - their margin is a few hundred % av order value guesstimate £75
-- Please dont say revenue share is a mugs game etc its our mo and its starting to work very well on the 2 clients currently live.
RM said:
Good sensible stuff and -
It really depends on how confident you are on the success of the project, is £5k a lot of risk for the return?
£5k isn't such a big deal however that's on top of the free scratch build website plus we run the risk of the client being a "can we just add" monster.It really depends on how confident you are on the success of the project, is £5k a lot of risk for the return?
I think we will fund it as on Thursday night we put a holding page up to capture emails for the launch and we've got 500+ sign ups - how can it fail (famous last words)
JP great idea we should hit 600 today and I'll explain the traffic - in the nineties it was a huge brand and still has a lot of net related search traffic worldwide.
The relaunch is pretty serious and we wanted to ring fence cash for a designer so the relaunched brand wouldn't look out of place with newer fresher brands.
I think a piece offered to the initial sign ups could be even £15 easily covering any bill.
Thanks guys
The relaunch is pretty serious and we wanted to ring fence cash for a designer so the relaunched brand wouldn't look out of place with newer fresher brands.
I think a piece offered to the initial sign ups could be even £15 easily covering any bill.
Thanks guys
Pot Bellied Fool said:
How about finding a different designer that would be interested in a revenue sharing deal - perhaps for a limited time. That way you get them on board for any amends etc too.
Great call, we are using a designer for a sports brand and this is a casual clothing brand we are going to have a chat.janesmith1950 said:
My concerns would to two-fold; can I trust the business I'm dealing with to be honest about the revenue and, why is that business willing to give away what is presumably more than the going rate to get something for no up-front cost?
The guys are massive marketeers who love promoting the brand, they last had huge success pre internet and want to partner with people they trust (us) to take it forward online. Trust is mutual, happy to fly that kite.janesmith1950 said:
Suggests to me the business might not have the cash to do it. If they haven't raised the cash to spend £5k on a website, why not? Surely a brand with some residual good-will (600 enquiries!!) should mean people falling over themselves to fund the startup properly?
They spent a real fortune buying the brand back, it has to work and they (like myself) see a partnership has better success potential than giving cash to an agency. They were pleasantly surprised by the sign up as were we.Its kosher it sold in tens of millions at peak, has a book and a C4 doc made about it etc it was major, I cant say who or too much about it but we have some A/B listers in the brand and its attached to music that is coming back as well (some huge concerts planned for early 2017 with some of the bands signed as brand ambassadors).
They want a online partner more than an agency and want us to buy in / commit and work with them which we are happy to do - to an extent.
On cancellation - our two current contracts are rolling 12 months and we have the site authority (not the URL).
They want a online partner more than an agency and want us to buy in / commit and work with them which we are happy to do - to an extent.
On cancellation - our two current contracts are rolling 12 months and we have the site authority (not the URL).
jammy-git said:
In cancellation then, what's to stop them walking away after 12 months once the website is setup and before you get much of a cut of the revenue? Do you continue to have rev share after cancellation? Is it revenue or profit?
12 months rolling they would have to cancel on launch day and (in the examples we have done) that's a risk we took. Remember this is shopify our build cost isn't Magento high.One of them appointed a USA distributor and we were asked to mirror the site for them we are hoping this will repeat in other countries. No Rev share just a mirror cost but all will be on retainers to keep the sites "uniform"
Not cracking the champagne yet but we have a nespresso in the office (with one window)
LDN said:
DSLiverpool said:
dmsims said:
Does it begin with A?
No not A and I really really cant say - said too much already.
On another note the shopify family (they send you their website enquiries) has landed us our first Oz client - HEMP didgeridoo anyone ? This will be fun - maybe.
Pot Bellied Fool said:
DSLiverpool said:
Great call, we are using a designer for a sports brand and this is a casual clothing brand we are going to have a chat.
I know a great designer up in Southport if you want her details. Top London Agency experience but freelances now and is too cheap for her own good! 
Pot Bellied Fool said:
PM sent
Got it thanks - sign off / final haggle is tuesday when we may theme it till March. The range is going is every high street in March but the online sales channel does not have to sell the same range at all but will benefit from the massive retail exposure so we may theme it and asses the sales potential for a March relaunch.
Appreciate the steer though decent designers are hard to find.
LDN said:
Andrew[MG] said:
As soon as I read your post I had an idea of who the brand was and a quick Google confirmed. I used to do digital marketing for them via the agency I worked for at the time and I'm 99% sure we had a revenue share deal with them too. The agency had a few rev share deals and they went bust in the end....although that was more to do with having a coke head owner who was up to his white nostrils in debt from cars and houses.
Does it begin with 'D'?LDN said:
Do you use Shopify out of familiarity? I ask as I found BigCommerce to be a better platform.
Shopify is our thing, we are accredited expert status with them and they feed us leads weekly, we only do ecommerce on shopify but for money we will do anything else either in house or freelanced. Our main initial tactic was to provide a natural path online for ebayers but that went out the window on day 2 but may be resurrected. Our own ecommerce is on shopify (late, sloppy and too embarrassing to go live as we keep getting sidetracked)
So today we agreed lots of things except our commercials ............. the sign ups tailed off but sit at circa 800 clean email address with names.
New site will be a modified theme, luckily the younger mans fashion etailers have pretty boring sites so ours will probably look better / as good.
Tomorrow we interview the social media companies with them - that will be fun! and I must get around to asking if we can agree on a cut.
New site will be a modified theme, luckily the younger mans fashion etailers have pretty boring sites so ours will probably look better / as good.
Tomorrow we interview the social media companies with them - that will be fun! and I must get around to asking if we can agree on a cut.
drainbrain said:
I have a product I want marketed online, including via social media, to adults in Scotland/North of England.
All that is required is one very very simple ad of 12 words plus a phone number. No website. And nothing elaborate.
The same ad will appear in other media too.
Do you do this DSL?
Have you looked into Facebook adverts and FB groups, it's really simple to target a pretty defined audience. Depending on what it is possibly other channels may be relevant. All that is required is one very very simple ad of 12 words plus a phone number. No website. And nothing elaborate.
The same ad will appear in other media too.
Do you do this DSL?
I wouldn't pay anyone to do it until you have tried yourself
Andrew[MG] said:
I don't see a new website live yet?
Funny you should mention that were on it right now, its about to go live after quite a bit of artistic "discussion", clothing is being populated now and amazingly we got to over 3000 sign ups on the holding page who will get offered an exclusive reprint of a heritage T shirt.First concert is March 11 and it will be perfect by then.
We now have brows, lashes, dental equipment and hair extensions as well as "rave couture" - this time next year Rodney .....
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