Developing a website idea - startup/sponsors

Hello,

I'm currently in the process of exploring a website idea that I have in mind. There isn't any other website like it yet (though it should) and I suspect it has a lot of potential to snowball into something substantial. (excuse me for being vague)

The problem is it will be too complex to build myself, and at the moment I don't have the funds to hire a professional team to make it. (Well, unless I sell my house that is)
So the operative question being, what exactly are my options?

1) Is it for example common to engage a sponsor who will fund the whole endeavor for a large cut of the projected income once the site takes off?

2) Or is it perhaps possible to engage a webdeveloper(/team) directly and propose a deal? (ie, little or no fee, but XX% shares of the website/company)

- And if so, how would one go about on finding those business partners?
- And if not, what other options are there really?

As for myself, I'm currently working out all the wireframes for every page. The UI, the functional design, Andsoforth.
i.e: Most of the thought & number crunching for a website will be done before the actual website building will start. Which should reduce the cost of development significantly in case I do decide to hire a webdeveloping company myself.

Thank you for reading. I'm interested in hearing from others, how to best address this issue.

 

How do you plan on this website making money?

I wouldn't think you could go directly to a web design company and offer them a percentage of profits, unless it is a freelancer or something of the sort.

What your looking for is an investor, not a sponsor. But they will take a hefty fee of the business. They will evaluate your business idea and see what they think the profit potential is and how much the idea is worth. If they think your idea alone, without anything to show for it (just an idea), is worth $10,000 and your asking $5,000 to start it up, they will demand 50% of the business.

These forums are a good place to find potential partners, etc. but be careful because a lot will tell you want you want to hear in order to get in on it, or they could possibly take your idea and run with it themselves if they have the money to do so themselves.

 

If you want to send me a PM I can help you out a lot more.

 

This is where any serious web developer like myself would stop listening and say "mmmhmm, well my schedule is pretty tight at the moment *hangup*".
If you ain't got the money to pay a web developer to make it then it's not going to get made, save money and hire someone proffesional, partnerships and xx shares in a fictional idea is not something that you should ever expect anyone to work for.

 

I agree with @Helge Sverre, although I do know of some freelance web developers who are willing to do partnerships and split the profits after.
I suggest finding local ones as it can be quite risky dealing with someone online.

Either scale down your idea and let it earn some money first before expanding, or form a team with your friends and start pitching (bearing the risk that the investors might just steal your idea and run on their own).

 

I'd also recommend being able to spend quite a bit to get things rolling.

 

To get things started you will need to filter things a lot. So many are going with this type of deals (sharing profits and stuff), but they don't consider some aspects like:
1. Costs and market implementation from the company who has to develop the marketing strategy. All that costs a lot if you want to get it done professional.
2. Try and put some $ on the table yourself. Some fix payment and share from profit. This way you will stimulate who ever will join the board.

Sincerely,
Matt

 

Thanks for the replies.

I'm going to a couple local webdeveloping companies the coming weeks. To get a consult, a feel of the place, and estimation how much the project would cost.
I have a fairly good idea what I need but I'd love to hear any recommendations on what to look/ask for specifically.

As far as protecting the idea; how is this usually done?
Maybe I'm naive but I trust webdeveloping companies to automatically threat a (face-to-face) consult as non-disclosure. I usually bring a small voice recorder device to meetings, in case I missed something.. But just out of curiosity, would this help with legal issues in any way?

 

Exactly, I have had these types of offers before and I always decline them. What are you bringing to the table besides your "idea"? If you do find a developer crazy enough to accept your idea the division of shares should be something like 90% for the developer, 10% for you.

 

I agree! Unless you're strong in marketing, or can contribute in terms of content, else you're essentially useless. Yes the idea is valuable, but the execution matters more.

 

I would like this post if I could. There are so many people these days who are inspired by the stories of the many billionaire start up stories like Facebook, Whatsapp, Twitter, etc. Yet they lack most of the qualities that made those people a success in the first place. If I didn't find these people so laughable it might annoy me.

 

Keep it as simple as possible. Make sure it is always accessible and easy to navigate. The most important aspect of having a website is making your website visitors find what they are looking for. Along with this you need a business plan, registration, tax information and some research before putting your website idea into action.