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[epub] new magazine startup
hi all1 I'm new to this list and am in need of some advice.

here's the scenario:

I have an idea for a magazine about tuning cars. I've approached a
publisher, who is also my friend, and tossed the idea to him. He is very
receptive of the project and here's basically what we agreed on:

Content will be provided by me and one of my car friends, this includes
articles, editorials, pictures, topics, etc. etc,

The publisher on the other hand will take care of the production, marketing
(ads) and distribution.

We all agreed to start this and "see how it goes". One area which I failed
to discuses because I'm not sure is this:

If and when the magazine starts to earn money, what is the norm for
distribution of profits? Is it that me and my friend draw a monthly salary
for "working" as "editors" (both of us currently have other jobs, so
technically we are not working for the publisher), do we do profit sharing
every month, quarterly, annually based on net revenue? Do we (me and my
"editor" friend) get paid based on royalties? What is the industry rate for
such? Or is it easier to just form a separate corporation for this venture?

thank you very much for your help

sidney ang


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