Great Business - But Could It All Be Lost?

[Bill Smith]

Over a number of years you build an Internet business that generates good money and supports a comfortable life style for you and your family.

Your business has multiple income streams. You get payments directly into your personal bank account - by check to your home address - some cash goes into your Paypal account and perhaps some more is transferred into one of those credit cards that only has a credit balance.

You own a number of websites. You have a multitude of secret passwords. You have set up a trail of activity that through your own enthusiasm you have managed to commit largely to memory.

Life is good.

Then one sunny day - coming out of the library - you inadvertently step in front of a bus.

My question is - how do you protect your complex business to ensure that it contunues producing cash for your dependents and the people you care about who may be in big trouble if the cash-flow suddenly dries up ??

After they sweep up the bits and the bus moves off - your bank account will be frozen (at least - that's what they do in England). Without the correct passwords and with all the money arriving in the name of the recently deceased, there is every chance that your business will die with you.

Does anyone have a plan ?

 

[Linda Buquet]

Hi Bill,

This is a subject that's on my mind a lot that I haven't done a lot with and I'm getting up there in age, so need to. My kids are all grown though so it's not a matter of needing to continue to support my dependents. But if you support your family with your affiliate business you def want to take measures to be sure they are covered.

It may be different there or there may be different terminology, but here I think setting up a trust or leaving the business to your family in your will, or giving someone in the family power of attorney, or some combination of all 3 would help take care of it. So those are all things you should consult with an attorney about.

But even with the above you'd need to document EVERYTHING. All your affiliate accounts, passwords, hosting and domain name passwords, etc.

If they knew your affiliate accounts and had contact info for each they could probably get the payments changed over to their name. However unless you train them, they would not know how to continue the business and residual income would only come in for awhile if no effort was made.

 

[Bill Smith]

I'm 61 - so I guess this is the sort of thing people my age think about.

When I started learning about affiliate marketing 4 months ago - I put everything in my own name. Presumably I can go back and change names and details.

I think the idea of putting everything in a company name or a trust is a good idea. If payments arrive into a private limited company bank account (closed to external investors/stakeholders) - and the family members you choose are all shareholders and directors - they can then continue to run things and pay themselves dividends or percentages based on whatever has been set up and agreed.

Consulting a lawyer/attorney and/or a an accountant/tax adviser would seem to be a critical part of that plan.

As you say - documentation and family training would seem to be vital if the business is to survive and continue at, or above, the level where we stop - for whatever reason. In these uncertain times perhaps an internet marketing business would be best run as a fiamily concern instead of one person working away in isolation on a business that nobody else in the family understands.

All I have to do now is create the business I'll be sorry to lose!

 

[vereecjw]

If your company is doing well, generating enough to justify it, you should talk to an attorney.
After I got married, my personal attorney (handles my will, etc), set me up so that it is passed over to her. Additionally he has documentation that relates to the business (passwords etc).

My wife and I have talked and she would not be able to run the company, so we have identified some friends in the industry that would pay a residual for running the systems etc and I have an equal agreement with them. This is very risky as you never know who you can trust.

Our main backup plan is the good old life insurance.

 

[Bill Smith]

Yes - there are many pitfalls here and I guess the younger folk are probably not giving this too much thought. I can remember being invincible too!

It seems the real problem is the complexity of the business model. If you buy property and rent it out it's pretty easy to pass on as a going concern - or a property management company will handle it for a fee.

But passing on a complex Internet business which takes ages to learn and understand is a real challenge.

I have a daughter who works in a market-leading SEO business here in London so I'm planning on keep her informed as my business grows.

Life insurance is a good plan - but you have to pay for it and it's really an additional benefit. It would be a tragedy to loose the cash cow you've created.

Maybe some entrepreneur will one day figure out a reliable management or purchase scheme for ongoing affiliate marketing businesses.

Sounds like a job for Richard Branson.