https://www.youtube.com/watch?v=DAm0EOes5to

1 00:00:00.000 --\> 00:01:00.000 welcome to the call today i want to
open the floor up to ask you guys because i'm sure because it's been
it's been 30 days since last time we spoke so if you guys have questions
in the chat burning burning things decisions that are impending things
you are unsure about strategies that you need to validate or even just a
a verbal high five please put in the chat and then um i'll go i'll go
from top to bottom jason bring you on a business partner don't do it and
go ahead so i've had this business for over a decade and legion's just
ne it's always been my weakest function and um i'm more i follow you
real quick what's that can i pause you real quick on that one how many
hours a day do you spend working on legion not a lot because i get
caught up in other stuff yeah so so you think about doing a partnership
with kyle and you're making the consideration you want to know the
decision process is that right uh yeah i mean a i want to know if it

2 00:01:00.000 --\> 00:02:00.000 was a good idea which i know there's
risks involved so then i'm like what what are the risks and what
consideration i'm meeting with elizabeth morgan this evening to bring up
my concerns but i wanted to get your feedback because you've probably
seen a lot you've been i've had eight filled partnerships so i know
nothing about this is you have to have re like talk about all the ugly
\[ \_\_ \] first yeah right so right now you guys are in lust right you
guys are like making out getting you know having having sales sex and
just like it's things are amazing right you don't want to have the
really ugly like how are we going to split up alimony if we you know if
we get divorced later conversation exit strategy all that yeah so like
that's what has to get defined and you now could define roles and
responsibilities the only reason to have a partner is if if they have
skills you do not have or they have money you don't have or they have
time you don't have if you're on the flip side like you have money and
they have time right so that's where that's where partnerships are
useful the number one way most people do partnerships though is like

3 00:02:00.000 --\> 00:03:00.000 hey i'm cool you're cool we love the
same thing let's go into business together which is a terrible way to do
a partnership because one of you is not necessary right and you're just
diluting your equity said are you looking at doing a true partnership or
are you looking on doing like a minority type deal um i would always
maintain a majority and it would be a scaling you know my big company's
an s corp so he would basically get a piece of the company as he helps
me hit certain million dollar milestones at to the point of max maybe
like a third of the company okay well that's that's different that's
more like a performance-based relationship with kickers i would i would
structure it as phantom equity which means what so it's equity that
doesn't actually invest unless there is a sale and if he were to leave
then he doesn't get the equity and so you can pair those two things
together so you can do like equity with profit sharing and so that that
would be that would be

4 00:03:00.000 --\> 00:04:00.000 probably how i would structure it
either profit or rev share depending on you know how you negotiate it
okay but just as a just a side note for everyone on here like i remember
i had a mentor really early on he's like and i was i was taking on all
these partners left and right because i didn't know what i was doing and
uh he's like listen you're gonna need an accountant he's like you just
pay the accountant he's like he's not a part he's not a partner in my
business he's like i just pay an accountant right so it's like just
because you have a need doesn't mean they have to be equity owner right
there's plenty of companies that are owned by people who are not lead
generation specialists you know so i think if it were me i'd probably
try and set up a really lucrative relationship that isn't necessarily a
partnership so i'd say like you know it's pay per or eight percentage of
something something to that extent right i don't know if you're ever
planning on selling because the only reason someone would ever want
equity is if they want control or they want to be able to make money on
an exit

5 00:04:00.000 --\> 00:05:00.000 so the only two reasons you want equity
otherwise equity sucks because then you just have liability which blows
so unless he wants control which i don't think he does and unless you
think you're gonna sell which i don't think you are or i don't think you
want to just you've been doing it for a decade unless you're just sick
and tired of it but i don't get that impression right so then the only
thing that that he should want or that you should probably negotiate for
is the stuff that he wants which is a percentage of revenue or
percentage of profit based on xyz so i think that's what you should i
don't think you need to make this an equity partnership at all i think
you just need an agreement um okay does that make sense yeah you need an
import a performance agreement this is like standard you know there's
tons of e-commerce companies that like they take ten percent of top line
from from sales attributed to the marketing that they make and they're
full service they don't have equity in the company but they get they get
a percentage of revenue got it yeah i guess i have to see or talk to
kyle and figure out like

6 00:05:00.000 --\> 00:06:00.000 why would equity matter to him because
yeah i'd be like just say what do you want or the or control but right
just ask what do you want he's probably gonna say i want to participate
in the upside cool what specifically because if it's sale i'm not going
to sell so what specifically i want to p i want a piece of what i'm
bringing it cool so then let's do it based on do exercise x or y for you
it'd be advertised to do profit share for him it'd be advantageous to do
a rupture it's up to you right okay that makes sense and the next
question looks like it's relevant peter's gonna exit yeah okay so peter
this is for you how to sever ties with a business partner and best
practices go separate ways so it depends on whether you have a kid or
not right and how good looking the kid is and how much money the kid
makes right and so you guys have a business if the business isn't making
a ton of money then most of these times you can just be like hey man
like why don't we just both \[ \_\_ \] off and go our separate ways it's
even worse than the business isn't making any money and has

7 00:06:00.000 --\> 00:07:00.000 debt that needs to be paid off so then
you can just i mean then at that point you should just split the debt if
you want to if you like you can split the debt or you can um is this an
llc that you are ending or is this in general so so the way the business
is set up is it is an llc and then i have obviously my own agency so the
to the idea was to use my agency to generate sales to then pay the debt
of the other llc back however um i'm responsible for the back end he's
responsible for the front end like the sales yeah last six months he
hasn't really brought in any sales so now that i'm selling and doing
everything exactly it becomes their point of like okay this debt is 50
50 however if i'm doing 100 of the work why should i also pay 100 of the
debt and fulfill the product and do everything else on the back end yeah
i mean trying to figure out like

8 00:07:00.000 --\> 00:08:00.000 how to uh rip that band-aid off and say
you know the easiest way to easiest way to have have hard conversations
is just ask the questions that you ask here so like literally the
biggest hack in all of relationships is the way that you talk \[ \_\_ \]
about someone behind their back is literally what you should just tell
them so it's like hey man you said that you were gonna do all the sales
and i was gonna do the back end well you're not doing the sales but
we're still both responsible for this thing so what do you think's fair
you'll have what you have in mind but a lot of times people who once you
once you present the information like that it'll be like ah \[ \_\_ \]
you're right you're like so what do you think's fair he's like well you
should just take the business and um i guess i can try and start paying
off my my share over time you're like cool that's what i was thinking
too let's sign these that way the you know the things dissolved and then
uh you transfer your equity to me and you have a note back to me for 50
of the debt

9 00:08:00.000 --\> 00:09:00.000 cool does that make sense yeah you can
google promissory note template one page it's just like from borrower to
lender no interest x amount by this paid by this state in this increment
like what what happens if they default and that's it like it's a very
simple like i've done million dollar loans on one page like you're there
they hold up and you're in real estate so you should find plenty of
promise orders that are simple yeah that makes sense so there's the
equity that's where investors are to our lenders right so i want to make
sure like so this the equity and the debt so there's two pieces right
the equity you just say hey i own 100 of this company you're giving your
shares to me because you're not doing \[ \_\_ \] right that's number one
or we dissolve the company i create new entity i'd prefer to say 300
what's up to you right the thing is is you could do that right now it
doesn't like and you could just say like i don't really give a \[ \_\_
\] if you sign this and it saves me 300 bucks like this is not

10 00:09:00.000 --\> 00:10:00.000 really discussion because there's
nothing here right the the second piece is uh is okay now let's now that
we've dealt with the equity piece now let's deal with the debt piece
right and so the debt piece this is what we both owe this is what we
agreed on this is what i will do and this is the promissory note that
you can write you know or we can both sign together towards the lenders
okay make sense and then you get then you're done yeah and then as far
as his involvement my agency just he can quote unquote sell my product
and earn a commission and do whatever he seems with it or or not because
that's the other you know tricky part is he's also involved in my agency
but more so because you guys are making any money so it's not like he's
gonna start making money now yeah okay right yeah that's kind of what
i'm thinking as well yeah it's like let's let's obsess about the fact
that it's like what if he gets rich on my products he wasn't getting
rich on your \[ \_\_ \] product for the last two years so like i don't
think it's just you know what i mean you know my my

11 00:10:00.000 --\> 00:11:00.000 thing was like i wanted i want him to
pull some sales in for us to actually sell the product because then we
would actually pay the other thing that's fine then i would say and on
top of this i'll still continue to give you the the thing you can still
sell it and you know we split the revenue whatever yeah okay cool sweet
