I need your help, please. My field, spirituality/relationships/metaphysics, has caused me to create a product, a list of sorts. It's a product I needed for my own use, to make my forum life better. This information apparently is worth quite a bit to someone else and I've been offered scenario 1 and 2. Scenario 1 is to joint venture and scenario 2 is to sell the rights.
I have no clue how to value such a deal! Will you help?
For simple math's sake, let's say the list sells to end users for $100. In scenario 1 I would retain the rights and do order fulfillment but he would be the only master affiliate and retain his affiliates. He pays his affiliates 50%. I may be able to retail the list myself under this agreement but can't get affiliates. I have no interest in selling this product, it's not the best use of my time, so all sales would come through him and his affiliates.
In scenario 2 he would pay me a flat fee to own the list (he would do order fulfillment) and perhaps a small, ongoing royalty to me. I won't be able to sell the list myself under this arrangement.
If this was you, how would you structure this deal? Which option would you choose?