::Conversation with a mainstream site owner:: Advice needed.
 

Here's my response to a conversation we just had on the phone. He says he wants to try to figure this stuff out on his own. He expressed interest in having me work for a percentage of sales, instead of as an hourly employee. He said it was getting too expensive. He also threw in "well you don't have any experience in the truck industry..." to which I responded "no, but I can sell Viagra online without being a Pharmacist. I can sell anything."

I told him I'd do it for 40%, and by my research is a very fair figure. I need some input.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

40% of profits or revenue? Also who will be paying for the ad campaign?

If someone gave me me money to buy keywords, and gave me 40% of sales - I would think the guy is too stupid to be in business.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Yeah and if you cant handle it dude... I can!

DOS TIP - $2 a day on google isnt going to do jack shit.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

That's why I'm here asking for input. What sounds like a more reasonable deal? I got the 40% figure from my buddy who operates a site that his parents own. They do about $70k a month sales. This site that I'm talking about running is sitting idle, and I'll be responsible to grow it from the ground up.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

How much is the adwords budget?
Do you just plan on using google?
Who pays for the keywords?

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

I want the company to cover all the traffic expenses, graphic / design expenses, scripts and hosting, etc.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

What are you getting 40% for?
You still didnt answer my questions.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Handling everything needed to move product. Traffic generation, adding / maintaining the product database, SEO, content production, writing blog articles, etc.

The owner won't touch a thing. I'll be responsible for everything. I just want him to pay for the nuts and bolts.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Mike, come on... 40% of profit obviously. If he gave me 40% of revenue he wouldn't have any profit for himself. Honestly I think I'm giving him more than a fair deal.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

First thing I'd need to know about the entire deal is what the norm is for the industry - what does a salesperson in this particular industry make?

40% for lead generation sounds high to me ...

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

trucking industry.. what exactly is the product? truck accessories?

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Yeah, I saw the trucking part - but that's a pretty broad spectrum, which prompted my question/comment.

There's just too many variables here ... are they going to be doing the entire transaction on the 'net, or are you going to be getting them into a shop where somebody else actually closes?

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

On the other hand, site management, traffic management, handling outsourcing ....

If you look at it one way 40% might seem high. If you look at it another way, all that work is probably enough to be a full partner splitting it down the middle at 50%. Tough call.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

If the sales are done online then what you say is true.

If somebody else is closing the deal, then it's not.

I still say there just isn't enough information here to make an informed judgement.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

I didn't think there would be so much confusion surrounding this request for advice. Basically what I'm going to be doing is creating the Amazon.com of truck parts. That means the customer can buy tires, shocks, superchargers, and a lift kit, nerf bars, online... pay for it... and we ship it to him.

I'm going to be creating the site from scratch, and starting with zero traffic. This includes building the product database, and entering all the product codes and product descriptions. Also, maintaining the product database - adding new product, deleting old product, and editing product.

I'm going to be managing the entire traffic campaign (Google, Overture, Froogle, and all the product indexes on the net that will list us...)

I'm going to be writing reviews, articles, and product installation tutorials (photo, and video) for some of the hot products. I'm also going to be doing product reviews on video.

I'm going to maintaining a blog, and exchanging blog traffic. I'm going to be working the forums to generate interest in the site and articles.

Basically I'm going to be doing everything it takes to move product.

Honestly I think he's getting a great deal for giving me only 40%... I don't know why you guys think otherwise. I hadn't said anything about "only generating traffic to the brick and mortar location".

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

It sounds like a win-win if the guy is legit. Do you know for sure that he has those sales and a track record?

I thought you were talking about adult sites. If someone roll up and did all that for my sites I'd take that kind of deal in a heart beat AND get involved in the day to day.

Truck parts? lol- well ok!

I was involved in DRTV products for a company who didn't know anything about import, fullfillment, production, etc. Basically investor that had other skills. I asked for a % of all internet sales & they thought they were getting me cheap cheap until the second month when my % exceeded anything I could make in salary. But I had a contract so after a year they knew everything they needed to know and I was looking for work again. Know what I mean?

So if your deal is a partnership it sounds sweet. If they are giving 40% to build the technical side of things on a limited partnership then I think I'd have to look at that contract really good!

Good luck!

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Worthwhile advise comes from informed advisors, thats why all the questions. The profit participation sounds reasonable to me, provided you know what his markup and true costs are. Have you figured out the cost of order fulfillment and who bears that? If the margins are too tight on this type of product line then the 40% might not be worth it for one or even both of you.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Were you asking for alternate opinions, or an endorsement of yours?

You didn't say anything that indicated your involvement was more than generating traffic to the brick and mortar location, either.

As far as the deal goes - I'd take it if I were in your shoes, and turn it down if I was in his.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

I made the same mistake in reading your earlier post as we discussed on ICQ. I wish you luck...let us know how it works out for you. As I told you earlier managing adwords campaigns is a full time job and then some.

Dont think just because you have some keywords that the traffic will flow to your site. I think you will discover the entire process is an art. Which could be expensive in the begining.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Your best traffic source to start is simple and its not a search engine. Buy ad space on hobby message boards. If you own a Z71 truck and your serious about your truck then your going to seek out a Z71 owners forum. Buy ad space that is targeted to the owners of those trucks. I assume your going to cater to a heck of alot of different makes and models.. the first thing I would do is find the center of the internet universe for each of the models you seriously support. That is targeted advertising.

Leave the engines for later.. the best thing you can do is become a standard place for people to buy upgrades. Support the forums that support your potential customers. It builds a trust factor and name recognition.

Give away a product to annouce your new sponsored relationship with the forum. Make it a very desirable product. When the winner has been selected, ship the product quickly and do everything you can to build a relationship with that customer. If they speak kindly of you then others will do business with you. Get into their community and show your support to pick up customers for life.

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

Some very good suggestions. Thanks Bishop :)

Re: ::Conversation with a mainstream site owner:: Advice needed.
 

interesting thread