Getting an investor question.

shahab6 · 02-09-2008, 11:09 PM

I have website, and I want to find investors to invest money in it. How does it work, let's say they invest $10,000 in the website, for adverting such as link, ppc, seo and seo, and let's say the website ends up making $30,000 a year in profits. how much of that money do I have to pay to the investor?? Is it half of it? And for how long do I have to pay that to the investor, or that depends on the contract? Also let's say it doesn't make any money the first year with the money he invested, it's actually lose money. Then what happens?\\

Let's say the website is already making money, but the money the person invested for those things brings in no extra profit, then what happends?
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**3ncryptabl3_lick** · 02-13-2008, 08:38 PM

That will all depend on the agreement. Draft up a contract.

allreal · 03-22-2008, 02:33 PM

Sounds like you are just referring to an "advertiser" and not an actual investor. If they are paying to display Ads, its an advertising agreement and not for equity in your company.

However, at this stage if you are looking into investment I reccommend sitting down with a lawyer to get a walkthrough of the due diligence and documentation involved - which you should go through to protect all involved.