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Selling a percentage of your action off, what's the standard formula?????

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  1. macker21 macker21 is offline

    Edmonton
    Canada

    Posts: 48
    Joined: Dec 06

    May 7th, 2009 (5/7/2009 3:43am)

    Hey, I'm contemplating selling off some of my action if i end up playing the Main Event this year, but I dont really have experience with selling off pieces of my action, have always just played my own roll...
    My question is, say if i let a few different people buy up $500 stakes in me, does this entitle them to a straight 5% commission on whatever I cash in the Main Event, or would they only be entitled to something less, say 3-4%, cause I'm the one doing the work, and should be getting more than they are????
    Someone with experience in this, please shed some light on what a "standard" deal would be, and i understand that i could set the terms to whatever i choose, just want to have a base framework to go off of...thanks in advance, any other tips or advice appreciated as well.....
     
  2. MyJobisYou MyJobisYou is offline Banned Scammer

    United States

    Posts: 4,961
    Joined: Dec 08

    May 7th, 2009 (5/7/2009 3:54am) in reply to macker21

    Whatever percent they invest in you they recieve in return. It's like a business you invest in, sure they do the work, but that doesn't mean the money you gave them upfront didn't help them to get the money they are gaining. 5% = 5%.
  3. KeelWhitey KeelWhitey is offline

    Fairhope, AL
    United States

    Posts: 91
    Joined: Apr 09

    May 7th, 2009 (5/7/2009 3:58am) in reply to macker21

    theoretically if 20 ppl bought a $500 share then that would mean your buyin is covered..which means if each person invests 5% they should be getting back 2.5% of your profit i believe..if you gave everyone 5% of your winnings then you would walk away with nothing..its like a standard 50/50 split

    however if 10 ppl buy 5% then yes of course they get 5% of all winnings and so on
  4. Crazyhorse76 Crazyhorse76 is offline

    Posts: 2,384
    Joined: Nov 05

    May 7th, 2009 (5/7/2009 3:59am) in reply to MyJobisYou

    There is nothing wrong with selling yourself at a small premium if you can get it.
     2
  5. Crazyhorse76 Crazyhorse76 is offline

    Posts: 2,384
    Joined: Nov 05

    May 7th, 2009 (5/7/2009 4:02am) in reply to KeelWhitey

     
    Originally Posted by KeelWhitey View Post

    theoretically if 20 ppl bought a $500 share then that would mean your buyin is covered..which means if each person invests 5% they should be getting back 2.5% of your profit i believe..if you gave everyone 5% of your winnings then you would walk away with nothing..its like a standard 50/50 split

    however if 10 ppl buy 5% then yes of course they get 5% of all winnings and so on

    ^^^^^
    Wrong. Selling pieces is different than a standard backing deal. The reason is the volatility of investing in just one event. There are a lot of threads about this. i'm too tired now to explain it all.
     2
  6. KeelWhitey KeelWhitey is offline

    Fairhope, AL
    United States

    Posts: 91
    Joined: Apr 09

    May 7th, 2009 (5/7/2009 4:03am) in reply to Crazyhorse76

    yes i see, you are correct..i confused myself for a second there
  7. AmorfusBlob AmorfusBlob is offline

    East Brunswick, NJ
    United States

    Posts: 103
    Joined: Feb 09

    May 7th, 2009 (5/7/2009 4:36am) in reply to KeelWhitey

    usually you sell 10k of yourself at like 80%. im not sure the number exactly and can be changed. but like you play for free basically for only 20%. all the others get whatever they paid x .80.
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