Getting an investor question.

[Shahab814@yahoo.com]

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, 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?

[SlvrBulletV6]

If you really want an answer, I would have to respond "it depends." It depends on what you can negotiate with that Investor, literally.

Some may only want to give you a loan where they require repayment with huge interests, others may only want a percentage of profits (perpetually or for a term or until a sum amount has been recouped), and there are of course others who may want partial ownership (meaning share of the profits and the losses, and perhaps some management control.)

It all depends on you and the investor.