Hi everyone. I'm not sure if this is the right forum to be posting in, but I figured i would take a stab at it. I currently have a dedicated server for which I pay'd for and pay for the dedicated connection, and I also maintain the machine entirely. I do updates, add sites, explore new software to make my job easier, and all the other stuff that comes along with being an admin. I've been hosting websites for my friend/a developer, and up until this point he has simply gotten 20% of all hosting fees for customers he brings me. Mind you, this has been set up like this for years, so it started back in like 2002. As of late, he is seeing that the hosting is starting to generate a steady income where programming is more something you have to keep on top of and make sure you work enough hours to cover rent that month. Also, not that this makes a huge difference, but hosting fee's cover the cost of the server with a profit of about $50 a month. Its chump change, it means nothing to him in terms of a real profit; however, he see's a huge potential for growing the hosting and turning it into something that profits a couple hundred on a steady monthly basis.

Now in the last couple of months, a bit more money has been coming in and i've been realizing the same potential. Nowing seeing the potential though, he wants to split things 50/50. And that includes the cost of the server and any costs down the road in terms of repairing hardware or purchasing software, etc. I dont see this as being very fair since I started this whole aspect of our relationship and now he wants to just swoop in when the getting is good. I still have to maintain the server and do all the administrative tasks.

Being that our arrangement was setup so long ago, is 20% still a good "reseller" cut? if not, what would be more beneficial to both of us?

Thanks for taking the time to read.

Stick with the orignal 20%. You said that the server is paying for it self with $50 profit, what would he be paying exactly?

Since you are managing the real business and invested time and money both from the start, I do not see how he can suddenly say 50/50 is a good deal.

Stick with the orignal 20%. You said that the server is paying for it self with $50 profit, what would he be paying exactly?

Since you are managing the real business and invested time and money both from the start, I do not see how he can suddenly say 50/50 is a good deal.

Well, he claims I would have nothing without "his" clients. which is partly true, but a car sales man doesnt get 50% of a sale. As for what he would pay, it would be half of the cost of the server, so we would take the 100% of income from the server, pay the server connection fee, and then take our profit from that. but it would be 50/50. so he has half the responsibility, but not half the work load (administration)

50/50 Business deals are never good. They look good on paper, however, rarely work. The only way to do things is by yourself.

50/50 Business deals are never good. They look good on paper, however, rarely work. The only way to do things is by yourself.


This is not true, they work fine when the proper parties are involved...

even better if you could create your own costs & own plans :)