James Schramko Podcast The Partnership Lie
Jan 8, 2026
Partnerships can feel off long before you recognize why. Equal splits might seem fair, but can lead to frustration if one partner stops contributing. It's crucial to evaluate a partner's current value versus their role. Managing a non-contributing partner drains emotional energy and focus. This lost focus can hinder the growth of other ventures, making bad partnerships more costly than just financially. Navigating these tricky issues is key to maintaining wealth-building potential.
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Common Partnership Breakdown
- James Schramko describes founders stuck in partnerships where contribution stopped but equity stayed the same.
- He explains the common 50-50 start that later leaves one partner doing most work while the other still takes half the profit.
Three Questions To Evaluate A Partnership
- Ask three questions to evaluate a stale partnership: replacement cost, energy cost, and opportunity cost.
- Use the answers to determine whether the partnership's drain on focus outweighs its financial split.
Focus Is The Hidden Cost
- A partner's fair market replacement pay is often far lower than what they currently take from profits.
- The real cost of a bad partnership includes lost focus, and focus is what builds wealth.