You've found someone you want to build with. You've talked it through, you both like the idea, and you're ready to get started. Before you do, you need to write the deal down.
This lesson walks you through how to actually write that first agreement. You'll get a section-by-section outline, plain-language examples of what to say, and a simple process for agreeing on it together. The joint ventures lesson covers why this matters. This one covers how.
The short version
- A simple written agreement spells out the project, who does what, the money, who owns what, and how it ends.
- Write it in plain words, go through it together, and keep a signed or clearly agreed copy where you can both find it.
- For anything significant, like real money, long commitments or anything you're unsure about, have a lawyer review it.
Why plain words beat fancy ones
You don't need to sound like a lawyer to write a useful first draft. In fact, trying to sound like one usually makes things worse. Fancy phrases you don't fully understand can say something you didn't mean.
Write it so you'd both explain it the same way to a friend. If you can't explain a line to a friend, you probably shouldn't agree to it yet. A lawyer can tighten the wording later. Your job is to get the actual deal clear.
The sections to cover
Here's a simple outline you can use as a starting point. Not every project needs every piece, but going through the list helps you catch things you'd otherwise miss.
1. Who's involved
List each partner's full name, or business name if they have one, and how to contact them. Simple, but it matters if anything ever goes wrong.
2. What the project is
Describe the project in a few sentences. Be specific about what's included and what isn't. This is called the scope.
Example: "Together we will create and sell one printable meal planner for families with food allergies. This agreement covers that product only, not future products."
3. Who does what, and by when
Write each person's tasks and the date each one is due. "Jordan designs the pages by March 1. Pat writes the instructions page by March 1. Pat sets up the checkout page by March 10."
Also say who handles ongoing work after launch, like answering customer emails. That's the part people forget, and it's the part that drags on longest.
4. Costs
List any costs the project will have, like tools or ads. Say who pays for them and whether they get paid back out of sales before anything gets split.
5. The money split
Write down how the money is divided and how it's calculated. Say whether the split is on the full sale or after fees and costs. Then say when money gets divided, who does it, and how each partner can see the numbers.
6. Refunds
Write the refund policy buyers will see. Then say who processes refunds and how refunds affect each partner's share.
7. Who owns what
Say who owns the finished product, and who keeps what each person brought in. Also cover customer emails collected during the project. Can each partner email those buyers later, or only for this project? Get specific here.
8. How you'll talk and decide
Say how you'll stay in touch and how often. Then say how decisions get made, like changing the price or adding a new version. Do you both have to agree, or does one person get the final call on certain things?
9. What happens if someone wants out
Cover how either partner can leave, how much notice they need to give, and what happens to the product and the money after. Also cover what happens if someone just stops doing their part.
10. How you'll handle disagreements
Agree on a simple first step for problems, like a call to talk it out within a week. For bigger disputes, a lawyer can advise you on other options that fit your state.
How to write it together
The process matters as much as the document. Here's a simple way to do it.
- One person writes a first draft using the outline above in a shared document, like Google Docs.
- The other person reads it and adds comments on anything unclear or that they see differently.
- Get on a call and go through it line by line. Don't skip the boring parts. That's where the surprises hide.
- Update the draft until you both agree. Then read it one more time, start to finish.
- Make it official. Sign it, or at least both reply in writing that you agree to that final version. Save a copy each.
Keep it current
Projects change. Maybe you add a second product, change the price or bring in a third partner. When that happens, update the agreement.
Write the change down, date it, and have both of you agree to it in writing. Don't rely on "we talked about it on a call." Memories are fuzzy, especially when money is involved.
When to bring in a lawyer
A simple written agreement is far better than a handshake. But it's not the same as a proper contract reviewed by a professional.
It's time to talk to a lawyer in situations like these. When in doubt, ask one:
- Real money is involved, either up front or from sales
- The partnership will last a long time or cover more than one project
- Someone is putting in money, equipment or something valuable they already own
- You're forming a business entity together, like an LLC
- Anything in the agreement confuses you or makes you uneasy
Bring your plain-language draft to the meeting. It shows the lawyer exactly what you both intend, which can make their job easier.
Do this next
A handshake feels good. A clear agreement keeps feeling good after the project gets hard.
Veteran. Gen Xer. Thirty-plus years building things on the web. I write these so you can skip some of the expensive mistakes.