…. Said the woman who just did it :) And who’s now my favorite person of the day!
Her name is Sarah Hanson, and she just got $125,000 in return for giving up 10% of her future income for 10 years straight. That’s 10% of everryyyyyyyyyyyyyything she does (or doesn’t?) do for 10 years in a row – Wow. I love it. Anyone with balls enough to not only come up with the idea but also MAKE IT HAPPEN passes the “hustler” test in my books any day. And you better have yourself a hustler too if there’s any shot in making back that $125,000 as an investor!
The funny part too is that I was literally JUST talking to my biz partner about this stuff, and how I’ve considered doing the same over the years myself. Only I think it would be WAY to much pressure for me to then have to live up to expectations for so long and not enjoy what my future holds for me over the next handful of years. If I failed I’d feel so freakin’ bad for the investor and would probably psych myself out! Which if you haven’t guessed it already, makes me a terrible business man when it comes to that type of stuff. AKA feelings and not wanting to screw people over. Luckily though I don’t have a need for a big chunk of money anyways, so I’ll happily keep doing my thing and reach that first million over the next few years all by myself :)
I think that’s the key to all of this really – having a (damn) good plan for that $125k or whatever to help propel you to that end goal MUCH faster. Like investing it in your business or product or however you’re gonna make that first million or two. Which, for Sarah, is her idea on the Senior Living Map (I don’t know much about the industry, or how she’ll make money off it from first glance, but I do hope it works out for her!). Without a use for the investment it would just be sucked dry over time with nothing much to show at the end of the day. Which could still happen even in this case too!
But that’s what speculation is about – big risks for big rewards! If you can stomach the big losses that often come with it too, why not take a chance on a budding star? Perhaps you can mentor ’em and connect them with your own personal resources too now that you’d have a stake in the results? I can’t imagine anyone investing in someone without being able to offer any type of guidance.
(Also – how the heck do you *track* all this money coming in? How do you know you’re getting your fair share as investor all those years and the person doesn’t hide any?)
This also reminds me of the time years back when rookie baseball players were selling off parts of their future income too – remember that? I can’t recall the names of them at the moment, but I remember an article about it in the Washington Post where these kids were giving up 10-20% for like millions of dollars which would be a (quite literal) home run for any investor if they really did well in the major leagues! Do you know how much those players make?? The GOOD ones? It’s insane. And to be a part of it would be killer… until they break a leg or get traded and never hear about them again ;) Maybe those who foresaw it were the ones offering up these “deals”?
Anywho, interesting stuff to think regardless. I guess the real point to all this is that you really can control your destiny when it comes to your money and your career. And the more creative you can get, the more chances of succeeding down the line when you mix in a few ounces of hustle.
Now tell me – would YOU ever auction off your future income? If so, what type of money would you require in return, and for how long? What %? How about the other end of the deal – would you ever INVEST in someone in a similar way?
I think that’s the side I’d more than likely fall in if I were ever caught up in a deal like this… In fact, I offered to invest in two people just last month! Haha… Well, more in their companies they’re launching than in their overall income streams for X amount of years (they both turned me down, btw, as they were doing fine without me or my money), but still – it was a fun experience to test out all the same. If anyone ever takes me up on it I’ll be sure to post it all up here to continue on this fun conversation :)
Have a good day, y’all!
PS: Here’s an interview that girl did on auctioning off her income. I don’t agree with the dropping out of college part, but I do admire her creativity.
UPDATE: Here’s a follow up on that interview where this whole thing may or may not be a hoax. Not that it matters really, it’s the *idea* of it all that I love, especially as I know people have done this in the past already and will continue to do so :)
(Photo by John-Morgan)
Jay loves talking about money, collecting coins, blasting hip-hop, and hanging out with his three beautiful boys. You can check out all of his online projects at jmoney.biz. Thanks for reading the blog!