Stake in the business

Hello all,

What percentage should you give to marketers in your business of you do not have enough money for marketing? 
Some marketers have been asking for a stake in my business.

Comments

  • When you say "a stake in my business" do you mean they will buy shares? If so, what percentage of the total shares are they asking for?
    Dr. Mike Thair
    Cofounder & Chief Formulator
    Indochine Natural
  • I've not gone public yet. They are asking of 15% ownership, if there is anything like that. It's kind of a partnership or something. So if the company grows bigger eventually, it means they own 15% of the s
  • IMO it's better to offer them a % of revenues (sales)

  • Define 'marketer' please.
    Design of anti-aging creams, gels, and serums; shampoos; and therapeutic cosmetics. In-house label and box design capability.
  • "They are asking of 15% ownership"....for that I would be setting some clearly defined and quantified sales outcomes as a result of their marketing activities. In my experience to date, a lot of there marketing characters steer well clear of measureable marketing outcomes.

    We have one of our private label customers asking to buy a stake in our production facilility business. The difference here is that they are "buying" shares. 
    Dr. Mike Thair
    Cofounder & Chief Formulator
    Indochine Natural
  • Thanks Gunther. Will consider that.
    Belassi, marketers, as in marketers(adverts/sales)
    Mikethair, "a clearly defined and quantified sales outcomes as a result of marketing activities". I will definetly work this out and include it in the documents if I ever consider their offer. Thanks a lot
  • Advertising and sales people? You don't give away part of your company to them. IF you have a sales person who is part of the founding team, I.E. director level person who goes out there and creates business, then yes.
    Design of anti-aging creams, gels, and serums; shampoos; and therapeutic cosmetics. In-house label and box design capability.
  • I would discourage this unless you have clearly defined roles and understandings of the Business's Chain of Command. I have heard of a few people doing this and getting chained to a Marketer who later on is not a good match. The constant banging of heads killed the enterprise.
    markfuller@microformulation.com Microformulation.com Microformulation Cosmetic Consulting provides Custom Formulations for both large Commercial accounts as well as smaller entrepreneurs. We can provide Naturally compliant Formulations under the NSF, NPA, Whole Foods and USDA Organic Certifications.
Sign In or Register to comment.