Quote:
Originally posted by BigFrog
so where does the investor make a profit off of his investment?
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Let me start off saying you will own 50% of all revenues generated from subscriptions fees until your entire investment is paid back in full. Say we do a 25% ROI if full amount is paid back in 6 months, and if we can't pay in 6 months, we add an additional 10% every 6 month span there-after.
For example, if you invest $10,000 and it takes us 6 months to get your $10,000 back via subscription revenues (from the 50% chunk you own), we continue paying you another $2,500 as your return on investment (which is the 25% ROI). If you're an investor, you'd know that 25% compounded semi-annually is considered a real good investment.
Let's say the investment turns out to be shit. Remember, you still own 50% of all subscription revenues, so eventually you'll get your money back in full. Assuming it takes 5 years (worse case scenerio) to make your $10,000 back.... you'd still own 50% until you complete we can pay your ROI. So 5 years - 6 months is 4.5 years in additional ROI. (25% + (9periods*10%))= 115%
This would mean, when all said is done, you'll pocket $21,500... a profit of $11,500 if the investment is paid in 5 years.
Ofcourse these are random figures, and doesn't necessarily reflect the contract we'd agree upon.