YOU GET THAT CALL OR EMAIL FROM THAT GUY “THE FAKE PARTNER”. FROM ONE WORD YOU WILL KNOW EXACTLY WHAT TYPE OF PERSON THEY ARE, THEY USE THAT TERM “PARTNERSHIP”.
SEE THE EMAIL EXCHANGE BELOW!
SOME PARTNERSHIPS HAVE VALUE AND YOU MAY WANT TO LOOK INTO THEM. MOST “FAKE PARTNERSHIPS” ARE FROM SOMEONE WHO HAS NOTHING TO OFFER YOU BUT WANTS YOU TO FINANCE THEIR BUSINESS IDEA. AN IDEA THAT THEY THEMSELVES WONT FINANCE!
Having your own business is hard enough you really don’t need this guy showing up, but he does, endlessly. Just to put things in perspective I started and own HeroBuilders.com we started by making the George Bush Action figure right after 9-11. The company has since grown and Created new toy markets that have become worldwide successes. So I get or the company gets the “Partnership” calls or emails almost every week. After 20 years of experience, I know what is happening and now I just ignore and/or just do not engage. I only kept this recent exchange because I have decided to blog my business experiences in the hope that I can help new people starting their own businesses. I think documenting those experiences goes a long way.
When I first started my businesses including this one I have gotten at least 1000 requests for the fabled partnerships. The exchanges are all the same, but before I get into all that check out this unsolicited email exchange below:
HIM: Dear Emil Vicale,
I have developed an idea for an impulse purchase, the interactive political doll I believe has enormous potential. I am making a few prototypes in China and would like to know how you work, and how we can get it out massively, next Xmas through a major distributor. I am talking about an item that would sell for $19.99 or $24.99 and easily reach a million sales. I am looking for a partner/distributor. Please let me know if you can become involved in contacting the right party, and how you would participate.
ME: What type of help do you need? And when will you have the production parts landed in the USA?
HIM: Hi, Emil…thanks for getting back to me so quickly; glad I’m not the only one working on Sunday! The item I have in mind is intended and ideal for a next Christmas release. What I need is I ran a paperback publishing company a few years ago and the way in which a printing run of, say 200,000 copies of a particular title, was securing a minimum advance from the distributor, that would cover the printing cost. If the title was hot enough, this was not a problem. And since all titles were movie tie-ins, this was not difficult to estimate. I know the idea I have at present (and valid for at least another year and a half) is topical and extremely marketable. So, what I would need is help to reach a distributor able to provide a guarantee that would cover the basic cost of manufacture — less than 20% of the sales price. And since finding, reaching out and negotiating with the right distributor would be to time-consuming for someone not familiar with this marketplace, I need someone with the track record and connections necessary to set up such a deal together, and advice on delivery to said, distributor.
HIM AGAIN: I have to add, by the way, that the first run of a book was decided in conjunction with the distributor, who in turn requested pre-sales estimates from booksellers before committing to a run and an advance based on it. I assume the same would be offered to a toy distributor.
ME: I see if I can reach out to some people, but on the face, the toy industry is different no one will give guarantee for anything the market, especially for a political toy, is very problematic right now. I don't know if you know who I am but I started the Political toy industry over 20 years ago with the introduction of the George Bush,,, and still own that company today and I can say for sure that we are not interested in making any deals with outside interests.
HIM: Of course, I knew who you were; that is precisely why I reached out to you. If anyone could give me a knowledgeable answer it would be you. If you still own and are active in the political doll industry, perhaps you should consider the possibility of an accommodation that would not conflict with your company’s interests. I’m not in this business to say, only to sell this particular doll idea. I am in an entirely different business and will stay in it.
ME: Feel free to send thru a proposal on what do you think is the proper amount I should be compensated as a consultant for this project? Knowing what I know and understanding to do this correctly will take 1000's of hours of time to do correctly...
HIM: Hi, Emil…What would be possible for me would be to offer you a share in the enterprise? Say something along the lines of…
a) You help find a distributor who will commit to an initial order (100,000-200,000?) and advance or guarantee 20% of the wholesale price. In this case, you receive a 10% agent’s commission of net revenues perceived by MTLA CREATIONS.
b) Your company manufactures the doll (in China, I assume, where I have gotten the best quotes and developed the design for the samples) and deals with all distribution. In this case, MTLA CREATIONS receives 10% of gross wholesale revenues until you recoup the investment and 30% thereafter.
c) You propose a different arrangement.
ME: Neither of these will make sense for us for many reasons.
WHO ARE THESE PEOPLE “THE FAKE PARTNERS”
Well I'm not a psychologist, so I won't, go down that road, but from my own experiences, they are kind of go-getters who want to do things. The main problem with these people as I see it is they want all the success that you have attained and want to emulate what you have done BUT they do not want to take the TIME or FINANCIAL RISK or LIFE RISK it takes to make a business endeavor happen. They want, want, want but won't take that RISK, and they won't take that risk because they feel what is theirs is theirs and what's yours is theirs. Lets not forget TIME, they want to get their FAST, because why should they waist their time when you have all the answers……..
If you want to go down this path with these types of people by all means do but please remember and listen to what they are actually saying to you.
What they are actually saying is that their life and family is more important than yours, and therefore you should do what they want at your risk and expense. And so to me this person is a horrible person and useless to you and your business.
My Advice is: Stick to your plan, after all you are paying for it with your TIME and your MONEY! Forget these people you will meet hundreds of them in your life time they are all scam artist and fake partners….