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A less weasely example might be the company simply deciding to take a loss or very low margin at low volumes to enable faster growth. That might make sense for
by netsp 17y ago
A less weasely example might be the company simply deciding to take a loss or very low margin at low volumes to enable faster growth.
That might make sense for them because they have an open ended upside. It doesn't for whoever makes a cut.
- jjs 17y agoAny time you take a percentage of the net, you've set up a perverse incentive for the company to spend more money up to the exact point where they're not paying you anything. After all, for them, it's "free" money!