Need your opinions?

[wazup]

I recently have tried to make a living on the internet and have invested well into 5 figures so far. The guy I hooked up with is well educated, oxford, American ivy league schools, masters degrees etc. The problem is is that he is fairly shady, I've let it slide as things are progressing.

However lately the shady activity has increased to the point where continuing with him is in question, a contract we had that was 80% complete, a few childish lies, and other unfufilled promises, all after payment has been made. He has the skills to take the business where it could potentially go but I would have to heavily rely on him as he has expertise I don't have, marketing, branding, tech, etc., and one thing I don't like doing is relying on other people as it never works out.

Problem is I will have to commit another handsome 5 figure sum to do it. I realise it's mostly my fault for getting involved with him as I knew he was shady all along, and whenever you ask a question like this a person usually knows the answer.

How have your experiences been relying heavily on other people? I realise everyone is shady.

 

[happydog]

You don't specify what "shady" means in this context.
Without going into too much detail. Is he doing drugs, hanging with the wrong people or areas?
Does it just relate to his personal life, financial, or will it reflect on the company, clients, and then your reputation?
You mention 80% complete. Can he finish and then help as a consultant without ownership or train someone for a price.

 

[thumper18474]

If you're not as..(tech Savvy) as he is..he may very well have built a house of cards so to speak..where you will have no choice but to continue to fund this Enterprise..or risk him collapsing it and you losing everything invested so far.
Ask yourself this...How far are you willing to go with this?
Is the upside worth it?
or are you just chasing your money?

 

[Titalian]

I recently have tried to make a living on the internet and have invested well into 5 figures so far. The guy I hooked up with is well educated, oxford, American ivy league schools, masters degrees etc. The problem is is that he is fairly shady, I've let it slide as things are progressing.

However lately the shady activity has increased to the point where continuing with him is in question, a contract we had that was 80% complete, a few childish lies, and other unfufilled promises, all after payment has been made. He has the skills to take the business where it could potentially go but I would have to heavily rely on him as he has expertise I don't have, marketing, branding, tech, etc., and one thing I don't like doing is relying on other people as it never works out.

Problem is I will have to commit another handsome 5 figure sum to do it. I realise it's mostly my fault for getting involved with him as I knew he was shady all along, and whenever you ask a question like this a person usually knows the answer.

How have your experiences been relying heavily on other people? I realise everyone is shady.

Why do you get involved in these scams. Judging by your thoughts on women on these boards, I thought you would have been the last person to get involved in this . Aw well!

 

[wazup]

You don't specify what "shady" means in this context.
Without going into too much detail. Is he doing drugs, hanging with the wrong people or areas?
Does it just relate to his personal life, financial, or will it reflect on the company, clients, and then your reputation?
You mention 80% complete. Can he finish and then help as a consultant without ownership or train someone for a price.

This is probably the most accurate, he's just a shady guy, smooth talker who will lie about anything, example, I have a video running on youtube and the limit is 15$ a day, I logged in a few weeks ago and it was increased to 30 without my approval. I asked him about it and he denied it, it was either him, me, or google that did it, and it wasn't me or google. He altered the functionality of the site for the worse without my approval. I don't know if I'm being petty and micro managing?

He made the video, there was supposed to be a 15 and 30 second spot, to my knowledge there is only a 30 second made, which was different than the contract. I don't interact well with people and don't like to rely on others so maybe I'm looking for a reason to exit.

I can absorb the loss right now as I have another secure investment I can invest in.

 

[BaldEagke]

Sounds like you made up your mind and know what you should do. Go with your intuition.

 

[wazup]

If you're not as..(tech Savvy) as he is..he may very well have built a house of cards so to speak..where you will have no choice but to continue to fund this Enterprise..or risk him collapsing it and you losing everything invested so far.
Ask yourself this...How far are you willing to go with this?
Is the upside worth it?
or are you just chasing your money?

Yes, those are the questions I am asking now, the problem is everybody lies to a certain extent, how big are they is the question and do they really impact the big picture?

 

[wazup]

Sounds like you made up your mind and know what you should do. Go with your intuition.

There is a significant upside to the business as internet is wide reaching. I could use the money I have left for other investments where I could live in Thailand for a lot of the year, but if I tire of that, then what? I spent 5 months in Ko Samui a few years ago and by the third month I was saturated by booze and bored stiff for the most part, spending 2 hours a day in an internet cafe some days.

 

[Titalian]

There is a significant upside to the business as internet is wide reaching. I could use the money I have left for other investments where I could live in Thailand for a lot of the year, but if I tire of that, then what?

Please do say. Lol

 

[SchlongConery]

I recently have tried to make a living on the internet and have invested well into 5 figures so far. The guy I hooked up with is well educated, oxford, American ivy league schools, masters degrees etc. The problem is is that he is fairly shady, I've let it slide as things are progressing.

However lately the shady activity has increased to the point where continuing with him is in question, a contract we had that was 80% complete, a few childish lies, and other unfufilled promises, all after payment has been made......

I realise everyone is shady.

Sorry to hear this. I think you already realize that to continue is unwise.

It is one thing to go into a business you do not have expertise in when you have a competent, trustworthy and hard working "partner". It is quite another to go into that business with someone you don't know, and the more you get to know them, the more you realize that they are "shady" and/or don't even fulfill their obligations, let alone work hard to make the business successful.

Not "everyone is shady." But if you feel that you are involved with someone shady, then no matter what, you need to shed that person from your life. Business or personal.

Sounds like this guy makes his money from getting paid by "investors" for his work, rather than the success of the business itself. The world is full of these parasites. And that is what they are, parasites. They feed of their host (you and other "investors") and they do not go out and hunt like a predator or even go to work like a farmer. This guy has done the to others before, and he will find someone after you. This is how he lives.


So you are wise to realize that this deal has gone bad. It takes a smart and rational man to realize it may be time to walk away and not keep sinking good money after bad, just because you are already in so deep. BTW, very few people make a "living" off YouTube ad revenue anymore. And those that might get close, all do the work themselves.

Here is a very astute treatise on the "Sunk Cost Fallacy"

"When one makes a hopeless investment, one sometimes reasons: I can’t stop now, otherwise what I’ve invested so far will be lost.

This is true, of course, but irrelevant to whether one should continue to invest in the project.

Everything one has invested is already spent. If there is little hope for success in the future from the investment, then the fact that one has already lost a bundle should lead one to the conclusion that the rational thing to do is to withdraw from the project.To continue to invest in a hopeless project is irrational.

Such behavior may be a pathetic attempt to delay having to face the consequences of one's poor judgment. The irrationality is a way to save face, to appear to be knowledgeable, when in fact one is acting unwisely."

 

[wazup]

Sorry to hear this. I think you already realize that to continue is unwise.

It is one thing to go into a business you do not have expertise in when you have a competent, trustworthy and hard working "partner". It is quite another to go into that business with someone you don't know, and the more you get to know them, the more you realize that they are "shady" and/or don't even fulfill their obligations, let alone work hard to make the business successful.

Not "everyone is shady." But if you feel that you are involved with someone shady, then no matter what, you need to shed that person from your life. Business or personal.

Sounds like this guy makes his money from getting paid by "investors" for his work, rather than the success of the business itself. The world is full of these parasites. And that is what they are, parasites. They feed of their host (you and other "investors") and they do not go out and hunt like a predator or even go to work like a farmer. This guy has done the to others before, and he will find someone after you. This is how he lives.


So you are wise to realize that this deal has gone bad. It takes a smart and rational man to realize it may be time to walk away and not keep sinking good money after bad, just because you are already in so deep. BTW, very few people make a "living" off YouTube ad revenue anymore. And those that might get close, all do the work themselves.

Here is a very astute treatise on the "Sunk Cost Fallacy"

"When one makes a hopeless investment, one sometimes reasons: I can’t stop now, otherwise what I’ve invested so far will be lost.

This is true, of course, but irrelevant to whether one should continue to invest in the project.

Everything one has invested is already spent. If there is little hope for success in the future from the investment, then the fact that one has already lost a bundle should lead one to the conclusion that the rational thing to do is to withdraw from the project.To continue to invest in a hopeless project is irrational.

Such behavior may be a pathetic attempt to delay having to face the consequences of one's poor judgment. The irrationality is a way to save face, to appear to be knowledgeable, when in fact one is acting unwisely."

Many good points, however the youtube video is an advertisement for the business, I should have clarified. The dollar amount is how much is spent and how many times it gets viewed, not to generate income.

 

[SchlongConery]

Many good points, however the youtube video is an advertisement for the business, I should have clarified. The dollar amount is how much is spent and how many times it gets viewed, not to generate income.

I see that after I re-read it.

So how much has the business earned in gross revenues so far?

 

[wazup]

^^^I'm projecting 18billion this year, errrr I mean a few hundred ad revenue per month, the sites are only a few months old, now it's about branding and getting traffic with site function upgrades later in the year.

The stupid little lies he told were absurd, but overall it's just how most people conduct themselves, we are programmed to lie since we were kids.

 

[SchlongConery]

... it's about branding and getting traffic with site upgrades later in the year.

Those words "branding" and "traffic" ar the "crack" that all these get rich dream merchants use to keep the cash cow (you) from walking away. "Site Upgrades" are how he is going to keep milking you.

You know it's not a good business. You also know your partner/consultant is "shady". Is there any value left if you cut him loose or stop investing more money?

IOW, if he dropped dead tomorrow or if you cut off the cash flow, would the business die or could you keep it going?

 

[wazup]

Those words "branding" and "traffic" ar the "crack" that all these get rich dream merchants use to keep the cash cow (you) from walking away. "Site Upgrades" are how he is going to keep milking you.

You know it's not a good business. You also know your partner/consultant is "shady". Is there any value left if you cut him loose or stop investing more money?

IOW, if he dropped dead tomorrow or if you cut off the cash flow, would the business die or could you keep it going?

The site upgrade are more additions to generate income, databases that have to be built, if he died tomorrow, the site would still run but it's not my expertise, I would have to hire someone to build the databases. I knew about the upgrades while building the site and since it is new there is no brand awareness yet.

I thought you build a site, put it online, people search and find your site and that's it, but that's not how it works I have found out.

 

[Perry Mason]

The best advice I can offer is that you get sound advice from a professional, not from the Net.

You need to base what you decide on an accurate assessment of all the relevant facts and circumstances not on generalities. The Net, of course, is not the right place.

Go spend 2 or 3 hours with a business consultant or an accountant or a lawyer... it may be the best $1,000/2,000 you ever spend.

Perry

 

[maxwellsmart]

I agree with shlong and perry but also disagree to some extent.
Whatever the "shady" activity or vibe you get from this guy is, that's enough to cut your link to him (can you fire him and hire somebody else at some point?) or just close down the business for now. Whether the business is internet based or bricks and mortar, the question is the same: Do you really think you're in it with the right guy? If you think he's shady, then he's not the right guy!
Also, without getting any deeper into the particulars of this venture, it doesn't sound like it was appropriate from the beginning since you seem to be very naive about how the business actually would work.

 

[GPIDEAL]

This is probably the most accurate, he's just a shady guy, smooth talker who will lie about anything, example, I have a video running on youtube and the limit is 15$ a day, I logged in a few weeks ago and it was increased to 30 without my approval. I asked him about it and he denied it, it was either him, me, or google that did it, and it wasn't me or google. He altered the functionality of the site for the worse without my approval. I don't know if I'm being petty and micro managing?

He made the video, there was supposed to be a 15 and 30 second spot, to my knowledge there is only a 30 second made, which was different than the contract. I don't interact well with people and don't like to rely on others so maybe I'm looking for a reason to exit.

I can absorb the loss right now as I have another secure investment I can invest in.

Threaten to sue the bastard if there's a contract and he doesn't comply with the terms.

Speak to a lawyer first.

 

[GPIDEAL]

Sorry to hear this. I think you already realize that to continue is unwise.

It is one thing to go into a business you do not have expertise in when you have a competent, trustworthy and hard working "partner". It is quite another to go into that business with someone you don't know, and the more you get to know them, the more you realize that they are "shady" and/or don't even fulfill their obligations, let alone work hard to make the business successful.

Not "everyone is shady." But if you feel that you are involved with someone shady, then no matter what, you need to shed that person from your life. Business or personal.

Sounds like this guy makes his money from getting paid by "investors" for his work, rather than the success of the business itself. The world is full of these parasites. And that is what they are, parasites. They feed of their host (you and other "investors") and they do not go out and hunt like a predator or even go to work like a farmer. This guy has done the to others before, and he will find someone after you. This is how he lives.


So you are wise to realize that this deal has gone bad. It takes a smart and rational man to realize it may be time to walk away and not keep sinking good money after bad, just because you are already in so deep. BTW, very few people make a "living" off YouTube ad revenue anymore. And those that might get close, all do the work themselves.

Here is a very astute treatise on the "Sunk Cost Fallacy"

"When one makes a hopeless investment, one sometimes reasons: I can’t stop now, otherwise what I’ve invested so far will be lost.

This is true, of course, but irrelevant to whether one should continue to invest in the project.

Everything one has invested is already spent. If there is little hope for success in the future from the investment, then the fact that one has already lost a bundle should lead one to the conclusion that the rational thing to do is to withdraw from the project.To continue to invest in a hopeless project is irrational.

Such behavior may be a pathetic attempt to delay having to face the consequences of one's poor judgment. The irrationality is a way to save face, to appear to be knowledgeable, when in fact one is acting unwisely."

Agree with all you've said here.

I can tell you similar stories about such parasites.

Interestingly enough, Saul in last night's premier of the second season of Better Call Saul, commented about the Sunk Cost Fallacy.

In fact, the definition of Sunk Cost, from an accounting dictionary is, A COST RESULTING FROM AN IRREVERSIBLE PAST DECISION.

In cost accounting, sunk costs should be ignored when determining the feasibility of an investment or business proposition GOING FORWARD.

If there are insufficient sales to yield a contribution margin, then the business or product should be rejected.

 

[pusher69]

It sounds like you need to move on and find a more reliable pitch person for your business.
If you are downtown, there are many many networking events where you can meet up with individuals that aren't as shady and will probably help you grow and/or expand your business if you want it.