Re:Don't Take VC Funding – It Will Destroy Your Company
by csomar on Monday July 10, 2023 @01:32AM
(#36662479)
For real-estate, assuming you are the seller: Let's say you bought a house with $500K and now looking to sell it. The real-estate agent finds a buyer for $550K. That's a $50K profit for you. The real-estate agent could work a little bit harder and find you are $600K buyer. That's a 100% gain for you. However, the agent is getting paid a fixed percentage of the total sale. For him, it's only a 9% increase; and that does not justify the extra-work.
The incentives are highly not aligned.
If you do not understand that, you'd be disappointed. If you do understand that, you'll see where your agent is coming from.
The incentives are highly not aligned.
If you do not understand that, you'd be disappointed. If you do understand that, you'll see where your agent is coming from.