Seeking Advice. Profit Split?

[Jack Smith]

Found the site via a google search about partnership splits. This isn't real estate related, but you guys sound really savvy so hopefully you can still help out - it's a pretty general question anyway...

Anyways, I'll try to keep it as concise as possible. I had approached a friend of mine months ago about starting a youtube channel, us doing silly things / pranks, comedy type stuff. Lets call this friend, Friend 1.

Finally after much convincing I get him to agree to participate. Another friend of mine had a similar idea (starting a youtube channel) but he wanted to do it with someone else.

Me and my friend made a "demo" video so to speak (after me investing about $500 initially for the camera). The other friend of mine saw the video, and was impressed, along with his friend not being particularly enthusiastic about working on a youtube channel.

So he "joined" us. Lets call him Friend 2.

Now, I've funded the entire project. I invested $1,000 alone on a camera / audio equipment / other necessary equipment. We occasionally use props / costumes in our videos, so including that I've invested approximately $1,500 TOTAL (equipment + props combined + editing software etc). Friend 1 has contributed perhaps $10, and Friend 2 has contributed no more than $100.

I decided on / created the name myself, and decided on it before friend 2 joined in.

I'm responsible for all graphic design, all video editing (this is the most time intensive part), I registered and manage the youtube channel, I manage the uploading of the videos, I have a background in web design so I'll be registering / creating the website, I manage and operate our social media profiles. I've done the majority of filming. I've done the majority of marketing and been most responsible for getting our channel to where it is now, within 1 month of uploading our first video, we have 100,000 views.

We've been approached by 2 partner networks to sign contracts with them, so I think it's obviously time we form an LLC and draft some contract.

I've done the vast majority of the work, and have been financing the entire project (aside from minor contributions from friend 2).

As far as the TALENT in the videos, it's more or less an equal split in terms of whose in front of the camera.

I more or less am the boss / director however you want to see it. I have creative control over the projects and do a lot of the logistical work.

Friend 1 contributes very minimally in terms of his "dedication" to the project, and may or may not even be in the country in 6 months. He is constantly busy, and hasn't contributed financially at all (aside from spending no more than $10 on a prop). He has done very limited marketing.

Friend 2 is particularly enthusiastic about the project, and has invested some money in equipment / props, and has done a fair amount of marketing (though I'd say I'm responsible for the majority of it).

Now, I want to maintain 100% ownership of the name / the youtube channel as a property as well as 100% of the actual content we upload to the channel. So basically the entire business aside from the money we bring in.

On top of that I also do NOT think it would be fair to me to do an equal profit split, my argument being I've invested the most money and most time. I've thought that I could consider it given that my partners make a significant financial investment + time investment, but quite frankly I can not imagine a scenario where they could invest as much time as me (they've offered to help with editing, but I have a better eye for it, plus I've already been doing it, and I'll produce a better finished product so I don't think I'd be willing to relinquish editing duties).

Basically, I can't envision a scenario where they could possibly take on equal responsibility.

With that said, I want to get your opinion on how I should proceed. I think a 75/20/5 split would be fair, or friend 1 might not even be part of it so 75/25 or 70/30. Or maybe even more? Thoughts?

I'm a bit nervous, because I almost know they'll want equal share and I don't want this conversation to damage the future of this enterprise...at the same time, I don't want to be resentful that I'm doing all the work and we're all making equal $$$....

Maybe I should just offer to pay them as "talent" in the videos...though I doubt they would go for this.

There is no money yet, but as I mentioned, we've already been scouted and there