How to Avoid Deadbeat Partners

I’ve done a LOT of projects with partners over the years.

Most of them were awesome! We made a plan, efficiently put the project together on time and under budget, and took our profits without any problems.

But sometimes you run into a partnership that just doesn’t work.

For example, one of my clients tried to work with a partner to create a new product in his business.

The problem was this that his partner had never created a product before.

He didn’t expect how much time it would take to do it right.

They came up with the outline and each starting working on their parts.

A month later and his partner hadn’t completed anything. He had some bits and pieces sitting around, but nothing that was coherent enough to use.

Another client had a long-term partnership that he eventually pulled out from, because his partner had totally different expectations about what to do with profits. His partner wanted to reinvest all the profits to grow a larger business. My client wanted some take home profits along the way.

At least that one had a good ending since he was able to sell out his portion.

Others aren’t so lucky. I’ve heard from entrepreneurs who’ve had partners steal their money, not pay team members, not do the work, and be all around deadbeats.

Here are a few quick tips to protect yourself.

#1 – Look for Previous Experience.

Look for someone who is a proven entity. They’re already involved in their own business or manage people. They’ve done advertising. They’ve written a book. They’ve done something!

Look for proof they’re a self-starter. Otherwise you may end up wasting a bunch of time motivating them to take action.

If someone has proven to be unreliable in their daily life, why would that will change when they partner with you?

#2 – Start small.

Vet your partners by doing smaller projects with them first. Don’t set-up a brand new corporation and ‘lifetime’ project with someone you haven’t worked with before…no matter how much money you think you’re going to earn.

I’ll often do a one-off promotion of each other (if we both own lists) or a single product together where we can each sell it on our own.

What can you do to test the waters first?

#3 – Discuss everything in advance.

Who is responsible for what? How will you divide up the work? How will you collect money from sales? How will it be split? What expenses will you take out before splitting any money? How much money will you keep in the business for refunds, advertising, and other expenses?

What will you do if one of you can’t complete what needs to be done on time (for example there is a death in the family or something else unexpected happens)?

What are the deadlines for each phase of the project?

The more you discuss, the better off you are.

Don’t assume anything when it comes to communication. Sounds a little like marriage, doesn’t it?

Gift #3 in the Monthly Mentor Club is “Adventures in Joint Ventures.” In it, Dr. Glenn Livingston and I share how to get started with joint ventures, the 7 best places to find partners, and 9 of the most common mistakes that neutralize even the most effective partnerships.

You get this $99 3-part video webinar free just for trying out the Monthly Mentor Club.

Similar Posts:

About The Author

Terry Dean

Terry Dean has been in full-time internet business since 1996 and has helped thousands of entrepreneurs get started online through his articles and products. He lives in Ocala, Florida with his wife and 2 dogs. Find out more about how the Monthly Mentor Club can help you today.