Client wants 51% of our startup as part of a service agreement. We're college founders and need advice. My co-founder (sales) and I (technical) are juniors in University (Location: Idaho) building a SaaS ticketing platform for venues and independent organizers. Been building for almost a year. We have two venues onboarded but they're tiny, few hundreds clicks a year combined, basically case studies and proof of concept. No meaning revenue yet.
We cold outreached a comedy club owner (8 figs a year in gross rev), got a demo call, and built him a custom frontend to show what the platform would look like for his venue. He is in desperate need of a new website and ticketing system. We sent him a proposal with a $5,000 upfront cost and $0.50/ticket service fee, regardless of the ticket price (by the way, Eventbrite, what he's using now, is $1.79/ticket + 3.79% of total transaction). He came back with this:
$0.50/ticket split into $0.25 service fee and $0.25 accumulating toward a $25,000 equity purchase. Once $25,000 is paid off, he owns 51% as majority shareholder, leaving us roughly $0.12/ticket from his venue long term. He wants it legally binding, and us to draft the contract.
For context, our original offer to him included 15% of gross revenue on venues he refers us to as a referral incentive (he has the connections, we've had issues with sales mainly due to the fact that people trust their old legacy ticketing systems even if they're getting ripped off), and he countered with 51% of the entire company. This guy has a bit of an ego so I'm not shocked at the offer, but there's no way we're taking that, it's a hard no.
Here's where it gets complicated though. My co-founder and I are genuinely broke going into the summer, and the money would be serious breathing room. So we're not walking away entirely, there's just no way we can give him majority control of the company.
The only scenario we'd consider this is if we can legally do the following: Accept his current d
12 days ago1 upvote
Mark Miller, from Easy360, called to sell his marketing services including "geofencing". He sold the prior office manager on the idea and we paid $1500. I did not come to work for the company until 5 months later, however, I had researched the company and roofing in general. Not once did I see any advertising during this 5 months that I DID NOT work for the company. This is what the geofencing was supposed to do; market to people looking for roofing. No ads on mobile, computer, or tv. Mark offered the results and I said I would like those sent to me. They never came. Then......today......Dakota Hunt from a sister company called CMP (Community Military Partnership) called me. They want me to give them money to support veterans organizations. They stated that they work with VFW, American Vets, etc. All large organizations. All of her wording was emotion provoking. I explained that I am a veteran and that I would put any funds to grassroots veteran support. I asked her not to call again and she stated "so you don't want to support the veterans". Once again, trying to provoke emotions and guilt. There is just enough online information to make some people trust these companies, but nothing specific enough. If you Google Dakota, there is a LinkedIn profile and a Facebook profile but neither has enough to believe that she is a real person, or that this name is connected to a real person. [BBB Scam Type: Online Purchase] [Business: Easy360] [Location: MI, USA - 49127]
27 days ago
This is not the first time I’ve been scammed by stupid marketplace ads. There should be someone to weed the scammers out from the social platform. So many people trust because it’s Facebook. And then they get juked and bad thing about it is you can’t reach anyone to get your money back. Your just had. I say shame on Facebook! Dollars Lost $150 [BBB Scam Type: Online Purchase] [Business: Lash Auras] [Location: OK, USA- 74126]
54 days ago
Social Engineering 1-4: Confidence, Trust, Word Play, Paranoia **CONFIDENCE**
Con-men got their name from confidence. Not for the confidence they carried themselves with, that's expected of every man, but for the confidence they instilled in others.
The social engineer requires the same tools. To get someone to believe in you, you must first get that person to believe in themselves. They must believe that what they are doing, who they are, how they live etc. is right. Doubt, you see, is what we rely on as humans to keep us alive. Was that a rustle in the bushes? Could it be a predator? Best check to be sure. Most times this reaction will result in nothing, but when it is correct, it is our saving grace. The mark, therefore, must believe so firmly that he is correct, must have such confidence in his belief, that he suppresses this evolutionary boon, and becomes complacent. That is the gift of a confidence man.
"Excuse me," a man asks, dripping wet and cold, "could you help me get to King st.?" The question of whether or not this man is serious never enters your mind, you can help him. You're confidant of that. This is the [Ben Franklin Effect](http://en.wikipedia.org/wiki/Ben_Franklin_effect). Once you've helped a person, you become more confidant in your ability to help them again, and the question of their motives never cross your mind.
This is the first step of any social engineering, trust.
**TRUST**
A man walks into an office building carrying a box. Long strides, big grin, eyes focused, everything about him says he has a purpose. People trust it. A man who is trusted is a man allowed. To gain trust, you must establish a non-malicious purpose. A motive which easily explains your story. A man with flowers in an office building? A clipboard outside of a house? An orange vest on the side of the road? Each tells a trustworthy story.
Words are the riskiest way to get trust. People often say what they mean, even the social engineer. It takes a skilled wordsmi
4909 days ago93 upvotes