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JV expenses to consider when entering a JV

Discussion in 'BlackHat Lounge' started by vulzala, Apr 14, 2012.

  1. vulzala

    vulzala Junior Member

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    I have completed a few succesful JVs and recently one of them has been cancelled. This thread is just to get peoples feedback and to perhaps warn others of expenses that should be discussed prior to entering a JV. Or at least my take on it.

    This specific JV was cancelled by agreement of both parties after the JV was delayed for 1 and a half months. The reasons were valid but as they were not the original ones and kept changing the JV was dissolved amicably.

    Now in this case, I had to send the money in US$. Being in the EU I had to pay currency conversion fees. Upon recieving the refund, again I had to pay the currency conversion from US$ back into euros.

    The other person, when issuig the refund deducted his currency exchange expenses from the amount to be returned to me. At the end he actually split it so he paid half of his fees and I paid half of his fees.

    Now as I just wanted/needed out, I went ahead and accepted these terms.

    But really next time I enter a JV a will make sure that these expenses are also detailled on who pays what as I went on my assumption that each party would pay their own expenses.

    Thoughts?
     
    Last edited: Apr 14, 2012
  2. Corrupt

    Corrupt BANNED BANNED

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    How much did you lose?
    If you were just the investor, I think you should get the complete money back. It isn't your fault the other person failed to complete the work. He's the one who failed the JV, not you. He should take the complete loss IMHO.
     
  3. vulzala

    vulzala Junior Member

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    $90 out of a $500 JV so a loss of 18%. I suppose that yeah the person at fault should pay the losses but I was OK in this case to just take my own losses and dissolve the JV.

    I def. will be discussing these things on further JVs. Lesson learned.
     
  4. Corrupt

    Corrupt BANNED BANNED

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    Was it this one?
    Code:
    http://www.blackhatworld.com/blackhat-seo/joint-ventures/413118-different-jv-1-month-earnings-paid-you-return.html#post3932834
     
  5. vulzala

    vulzala Junior Member

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    I did not want to out anyone as this is not a shitlist thread, but seeing that anyone can just see my previous posts and find it, yes, that is the one.