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I run a online game server company, it has only been inbussines for a little under a year and has grown enough to supliment my 9 to 5 job.
I now have people asking to invest into my company, and my question is depending on how much they invest how do I determine the amount they get on thier return? for ranges of $1000 to $5000, what percentage would be a fair amount for them on a monthly basis?
Thank you
To begin, are they purchasing equity in the company or making a loan?
A "fair amount" is really what you can both agree upon. However, investors want a return that is commensurate with the risk- as they perceive it. They can get 10% per year with virtually no risk, so you will probably have to be well above that number.
Caution: depending upon several factors, you may have some securities regulations to consider as you move forward.
Robert Johnson
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