Taking on a money partner for marketing expenses. What kind of deal should I work up?

[Thomas I.]

Hey Guys, 

Want to ramp things up and start spending about $1.5k/mailing/mo on marketing for seller leads. 

Would like to take on a money parter to pay for all or some of the costs.  

What kind of deal have you done or recommend?  

[Jon Holdman]

If you can find someone to do this offer them a 10% return as a loan.

As a potential investor I'd consider this VERY, VERY risky.   The most likely outcome is you spend the money and don't never close a deal.  So, I'd only do it as a personal loan and you'd be on the hook for principal and interest regardless of the outcome.

To even consider some sort of profit split it would need to be very biased toward returning my capital.  Such as 80-90% of any profits until 100% of my $9000 investment is returned and then something like a 50/50 split until I've earned another $9000.

The difference between this and a money partner on a fix and flip is that there is no security.  As an investor, I'm investing $9000 which is effectively the entire value of our venture.  That's a very difficult sell.

This is really the sort of thing you self fund to get your business off the ground.  Personal loan, loan from friends or family, credit cards, 401k, something like that.  Once you close a deal, plow that cash back into more marketing.