A catch phrase will go here soon.

New Rocketboom is up… (plus: on founder's equity and playing the "crazy" card)

7/12/2006

The new Rocketboom up and it’s….. wait for it….. good!

Congrats to Andrew for getting the show back up and running, and congrats to Amanda for having her 49% ownership stake worth something. The best thing for Andrew is that he proves to the world that he had value in making Rocketboom by making the show even better, and for Amanda to move on to her next gig while getting 49% of the profits from Rocketboom for the rest of her life. She should hope that rocket boom doubles in size and does the 40k a week that Andrew has sold the ads for. That’s 2m a year, and there is no reason for Rocketboom costs to be above 500-750k, so it should have at least a 50% margin.

If that happens Amanda might make 100-500k a year next year just watching Andrew do all the work–that’s the amazing thing about “founder’s equity,” you get it up front. Even if you leave it’s yours forever. This is why people do contracts where each party agrees to stay for two years or give back some % of equity if they leave early. Now that Andrew is working for Amanda for the next couple of years I’m sure he will write better contracts with his talent. It’s called a “claw back” provision, and any good startup attorney can show you how to do it. If I was Andrew I would offer Amanda $100k for her share payable over the next 12 months and if she doesn’t take it I would start a new show and tell Amanda that they should do an EBAY auction for the Rocketboom IP. That’s what we call the “crazy” card in the startup world… you basically say “I’m not gonna put my life into this for 51%! Either let me buy you out or I’m moving on too.”

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English Bulldog

Hello, my name is Jason. Welcome to my blog on the interwebs. You can reach me on twitter @jason and by email at jason@inside.com. My Skype is jasoncalacanis, and my mobile phone is 310-456-4900.

I only pick up numbers I recognize, and in terms of emailing me, the best strategy is to write short, blunt and to the point requests. I can quickly respond to short messages, and many times I simply don't have the time to read five page pitches. In terms of taking meetings, I only do that after reviewing an actual product (not a business plan). So, the best time to ping me is when you have mockups or an alpha site. I don't read business plans, and I've never written one.

Other twitter accounts you can follow: Inside.com, Ticker, This Week in Startups and LAUNCH Festival

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