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Thread: industrial partner

  1. #31
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    Quote Originally Posted by van View Post
    Helpful, indeed! Thanks for the additional incentive tips, spider! The 20% partner will be treated as an investor, which excludes him from ownership. So it'll be like, instead of investing financially, it is in kind over the year, at the end of which he gets 20% of the profit. He won't be required to come in on a schedule, just output progress. Forgot to ask-- we were thinking that we'll be releasing to him 20% of the total profit (not just 20% of the profit marked to be released that year), that's would be fair and correct, right? ....
    I'm confused. You say you will treat your 20% partner like an investor and then go on to describe treating him not like an investor. An Investor of cash would get proportional ownership, wouldn't he? And the Investor of cash would get his relative proportion of distributed profit, right? So, your 20% partner is being paid quite differently from the other investors, it seems. It's not for me to say whether this is fair - if you all agree that is what you want to do, then that makes it fair. Just make sure it is clearly stated and that everyone understands and agrees to the terms.


    Quote Originally Posted by van View Post
    ...But, to keep you guys posted on Person C-- well, well.... glad to find out as early as now that we won't be working with him. After 3 months of good communication, last month we had major ethics problems with him. It's a major step back, but at least we found out before this got underway. So we're now about to talk to Person D and E. I don' get some people. They complain that they need additional income, complain about money, etc etc, but when opportunities present themselves, they f it up. Oh well....
    It's called Self-sabotage. If we do not feel, deep in our subconscious, that we are worthy of something, we will be inclined to make sure it doesn't happen, no matter how beneficial it may be. It's a strange phenomenon but really quite common.

  2. #32
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    Woops, correct... I'm getting terms mixed up. Not investor, contracted labor rather, with "investor" incentives. Or maybe we can call him a short term investor, it has a better feel ... No ownership (but the term may be extended indefinitely) but computation of incentive is straight up a % of profits, and thanks again for making it clearer in my head, 20% of full profit, not distributed profit as real investors will be paid -- meaning his share will be technically an expense of the company (right? because paperwork wise, there's no way to explain his % if he's not a shareholder).

  3. #33
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    Yes, that's how I see it, too.

    Good job!

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