Comments on: Why You SHOULD Look A Gift Horse In The Mouth http://www.simplyzesty.com/advertising-and-marketing/business/gift-horse-mouth/?utm_source=rss&utm_medium=rss&utm_campaign=gift-horse-mouth Building your brand through social media Fri, 10 Feb 2012 02:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Karen Swim http://www.simplyzesty.com/advertising-and-marketing/business/gift-horse-mouth/#comment-15875 Karen Swim Thu, 23 Sep 2010 21:06:21 +0000 http://www.simplyzesty.com/?p=7907#comment-15875 Your post turned up in a search and though written earlier this year it is particularly timely for me. This year more than any other I have had several offers to "revenue share." Truthfully, none have been a true revenue share but a ploy to get work done that was needed without paying for it. I have even had people refer to "sweat equity" without realizing that I'm putting sweat equity into my own company and don't have any left over to do a lot of work for free to help you build your company. I have said no to every "deal" and am encouraged to know that I am not alone. Thank you for sharing your thoughts on this for others to learn from. Your post turned up in a search and though written earlier this year it is particularly timely for me. This year more than any other I have had several offers to “revenue share.” Truthfully, none have been a true revenue share but a ploy to get work done that was needed without paying for it. I have even had people refer to “sweat equity” without realizing that I’m putting sweat equity into my own company and don’t have any left over to do a lot of work for free to help you build your company. I have said no to every “deal” and am encouraged to know that I am not alone. Thank you for sharing your thoughts on this for others to learn from.

]]> By: Case Ernsting http://www.simplyzesty.com/advertising-and-marketing/business/gift-horse-mouth/#comment-6038 Case Ernsting Thu, 11 Mar 2010 18:08:01 +0000 http://www.simplyzesty.com/?p=7907#comment-6038 I am also interested to hear your response to Rebecca's query. I take part in some of these bartering networks, simply because it's quicker. For example: I need a basic website for my career and my friend needs content for his website...since I can write and he can program, let's just exchange services instead of running around to banks and trying to make money out of thin air. This bartering system seems perfect for the very beginning stages of business activity, but I wonder if there is a place for service trading once a business is off and running? I am also interested to hear your response to Rebecca’s query. I take part in some of these bartering networks, simply because it’s quicker. For example: I need a basic website for my career and my friend needs content for his website…since I can write and he can program, let’s just exchange services instead of running around to banks and trying to make money out of thin air. This bartering system seems perfect for the very beginning stages of business activity, but I wonder if there is a place for service trading once a business is off and running?

]]> By: Rebecca Spadaro http://www.simplyzesty.com/advertising-and-marketing/business/gift-horse-mouth/#comment-6018 Rebecca Spadaro Wed, 10 Mar 2010 15:07:11 +0000 http://www.simplyzesty.com/?p=7907#comment-6018 This post made me think of something I have recently been hearing more and more about. Organizations that put people/companies together who are interested in trading services instead of cash. Some of them have been around for many years. These bartering networks offer organization and structure to these types of deals which is something that might be a major culprit in some failed ventures. I found this article in business week about it. http://www.businessweek.com/magazine/content/08_64/s0804021853506.htm. One of the more reputable organizations I was referred to was http://www.imsbarter.com/. I have yet to take part in anything like this but I am very interested on what others think or may have experienced. This post made me think of something I have recently been hearing more and more about. Organizations that put people/companies together who are interested in trading services instead of cash. Some of them have been around for many years. These bartering networks offer organization and structure to these types of deals which is something that might be a major culprit in some failed ventures. I found this article in business week about it. http://www.businessweek.com/magazine/content/08_64/s0804021853506.htm. One of the more reputable organizations I was referred to was http://www.imsbarter.com/. I have yet to take part in anything like this but I am very interested on what others think or may have experienced.

]]> By: Ruairi Browne http://www.simplyzesty.com/advertising-and-marketing/business/gift-horse-mouth/#comment-6016 Ruairi Browne Wed, 10 Mar 2010 10:13:33 +0000 http://www.simplyzesty.com/?p=7907#comment-6016 I wrote a rambling blog post about this months ago. In my opinion the most important work you do [reputation wise] is the work you do for free. The reason for this is because nobody values unpaid work. Therefore to impress your "customer" you have to work twice as hard and do twice as good a job. I find you get less word of mouth from unpaid work and you get less respect from unpaying clients. By unpaid I do like you mean money. Trading services is not the same - the other person (and you) see it as free work effectively. Good blog post. I wrote a rambling blog post about this months ago. In my opinion the most important work you do [reputation wise] is the work you do for free. The reason for this is because nobody values unpaid work. Therefore to impress your “customer” you have to work twice as hard and do twice as good a job. I find you get less word of mouth from unpaid work and you get less respect from unpaying clients. By unpaid I do like you mean money. Trading services is not the same – the other person (and you) see it as free work effectively. Good blog post.

]]> By: Tim http://www.simplyzesty.com/advertising-and-marketing/business/gift-horse-mouth/#comment-6011 Tim Tue, 09 Mar 2010 23:40:47 +0000 http://www.simplyzesty.com/?p=7907#comment-6011  I have to dissagree in that ice worked in revenue share deals a lot and seen the good and the bad. No matter if it's apple and the app store or a much smaller proposition, the JV splits should always relflect the amount of work done by each party. From there, you are then in a symbiotic relationship and your chances of making money are 100% reliant on each party fullfilling their obligations to the deal. So we come across common failure no1: where by one of the parties does not follow through with their work. Not a good reciepe for success or making money and thus a bad business model.  The 2nd common failure is that while the proposition may look good on the outside and is a clear winner, it is not always the case when you go to Market, and by no fault of either party, it's just not a flyer. I think that sometimes it can be hard for both parties to accept this in a JV, but with sense, you just move on.  I still think it's a great latteral way of doing business, espically when investment of your time and energy is the risk. At the end of the day, focus is what pays off I reckon.   I have to dissagree in that ice worked in revenue share deals a lot and seen the good and the bad. No matter if it’s apple and the app store or a much smaller proposition, the JV splits should always relflect the amount of work done by each party. From there, you are then in a symbiotic relationship and your chances of making money are 100% reliant on each party fullfilling their obligations to the deal. So we come across common failure no1: where by one of the parties does not follow through with their work. Not a good reciepe for success or making money and thus a bad business model. 
The 2nd common failure is that while the proposition may look good on the outside and is a clear winner, it is not always the case when you go to Market, and by no fault of either party, it’s just not a flyer. I think that sometimes it can be hard for both parties to accept this in a JV, but with sense, you just move on. 

I still think it’s a great latteral way of doing business, espically when investment of your time and energy is the risk. At the end of the day, focus is what pays off I reckon. 

]]> By: James Kennedy http://www.simplyzesty.com/advertising-and-marketing/business/gift-horse-mouth/#comment-6010 James Kennedy Tue, 09 Mar 2010 23:37:37 +0000 http://www.simplyzesty.com/?p=7907#comment-6010 The idea of doing a revenue share is very appealing. Without having to pay (read:lose) money you can share in future rewards. It all sounds very abundant and zen-like. Putting together a deal like this actually takes a hell of a lot of skill. Balancing the motivations of all parties alone is spectacularly difficult to achieve. I'm sure there are people who can do it - but its a rare talent. Maybe it isn't a lack of cash which is the problem. Maybe it is a lack of 'downside'. If I pay for something - and I don't make sure I get the most from it - I've 'waisted' the money. If I invest time in a project but wasn't going to get paid for that time in any case - I have nothing to lose. It seems to me though, that with most projects, there comes a time when, in order to succeed, you need to do something you wouldn't have agreed to at the outset in order to make it a success. There is some aversive task that needs to be knuckled down on. WIthout a 'fear of loss', however, there is no extra motivation to help get the hard work done when it needs to be. Fear is twice as motivating as pleasure and in any deal you need a bit of both to get stuff over the line. Having said all that. My partner and I run Piehole on completely a profit share basis. We never put any money in and we both work on good faith. It has to be said though - I've probably started tens of such projects where nothing has come out of it. Maybe it is a numbers game. Maybe its about the strength of the relationship. Actually. Now that I think about it. The laptop I'm typing this on came out of the profits or a revenue share idea. Again - I knew the guy real well and there was a lot of implicit trust. I guess one laptop and one lively-hood isn't bad going. The idea of doing a revenue share is very appealing. Without having to pay (read:lose) money you can share in future rewards. It all sounds very abundant and zen-like. Putting together a deal like this actually takes a hell of a lot of skill. Balancing the motivations of all parties alone is spectacularly difficult to achieve. I’m sure there are people who can do it – but its a rare talent.

Maybe it isn’t a lack of cash which is the problem. Maybe it is a lack of ‘downside’. If I pay for something – and I don’t make sure I get the most from it – I’ve ‘waisted’ the money. If I invest time in a project but wasn’t going to get paid for that time in any case – I have nothing to lose. It seems to me though, that with most projects, there comes a time when, in order to succeed, you need to do something you wouldn’t have agreed to at the outset in order to make it a success. There is some aversive task that needs to be knuckled down on. WIthout a ‘fear of loss’, however, there is no extra motivation to help get the hard work done when it needs to be. Fear is twice as motivating as pleasure and in any deal you need a bit of both to get stuff over the line.

Having said all that. My partner and I run Piehole on completely a profit share basis. We never put any money in and we both work on good faith. It has to be said though – I’ve probably started tens of such projects where nothing has come out of it. Maybe it is a numbers game. Maybe its about the strength of the relationship.

Actually. Now that I think about it. The laptop I’m typing this on came out of the profits or a revenue share idea. Again – I knew the guy real well and there was a lot of implicit trust. I guess one laptop and one lively-hood isn’t bad going.

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