by Phiberdelic » Sun May 25, 2008 6:38 pm
OK I'm getting so bored that now without NC, I'm having paranoid dillusional thoughts. Is this all a conspiracy?
Not sure how business works in Germany, but I assume principles still apply. Company "XYZ" has an idea/product to which they do NOT sell, but rather give to Investors and settle a deal in which XYZ gets the funding they need to launch/revamp/maintain. In turn the Investors lays out that after certain months for statistical data to be collected, each month they are entitled to a set dollar amount, lets say initially numbers raked in 10k per month and Investor set contract at 1k per month guaranteed payment. Contract such as these are usually laid out in a way that as long as there are X amount of subscriptions being re subbed that the Investors will still get their 1k even if XYZ is getting less than the initial 10k and is now less than 1k. With this contract XYZ has a break-away clause, that should subscriptions fall below a certain number for a given amount of time, that they can essentially break the contract and are under no legal ramifications from doing so. Then XYZ can end the service to the customers and focus on other projects. And I know some will say, well it's prolly written in such a way that Investors get a percentage of all sales and not a flat rate-perhaps; but if I were an Investor and thinking only short term then, yes, I would choose percentage based profits, but if I were a long-term entrepreneur I would go for the flat rate, as this would prove more money on a subscription based service and for this type of industry. 10% of X for 1year where X decreases by 5% per week OR 1k per month for 2 years. Percentage would show i made 18k the first year but only 1.3k the next totaling 19k for 2 years, or by flat rate I was ensured to get 24k. BTW my math could be all wrong but, concept still applies. So is it just a way for KK to gracefully back out of a contract? Is the government really out to get me like the voices in my head are telling me?
N E ways