How do I earn money?
To understand how payout distribution works, we have provided a theoretical example.
Please note that this is just for demonstration purposes and is not reflective or promissory
of the actual payout distribution for this deal.
|Your initial capital contribution (investment):
The payout distribution structure occurs as follows: Investors will recoup 100% of their initial
investment from the Company’s aggregate distributions pro rata (according to units owned).
Any remaining profits will be shared 40%/40%/20% between artist, investors, and Stampede Live respectively.
Your overall earnings: $466.67
In year 1, the project has $35,000 in distributions. The first $30,000 will go to repaying the investors’ initial
capital contribution, making investors fully recouped. For the remaining $5,000, investors get 40%
or $5,000 * 40% = $2,000. Therefore total investor profits are $2,000. For your distribution, you will recoup
your initial $1,000 capital contribution from the first $30,000. Your earnings are calculated as
$2,000 * 1,000/ 30,000 (total investor earnings * your shares/ total shares) = $66.67.
In year 2, the project has $20,000 in distributions. Investors have already recouped their initial capital
contribution so total investor earnings are $20,000 * 40% = $8,000. Your earnings are calculated as
$8,000 * 1,000/ 30,000 = $266.67.
In year 3, the project has $10,000 in distributions. Investors have already recouped their initial capital
contribution so total investor earnings are $10,000 * 40% = $4,000. Your earnings are calculated as
$4,000 * 1,000/ 30,000 = $133.33.
Summary: After 3 years, the project made $65,000, total investor earnings were $14,000, and your investment
earnings were $466.67.
Please understand that this is just a theoretical example to help you understand how payouts work
for this offering. We cannot guarantee that the project will be profitable and like any other investment,
you could lose some or even your entire investment. For example, let's say in year 1, there is $15,000 in distributions, which all goes towards repaying investors'
capital contributions, and your share of this is $500. In year 2, there is $5,000 in distributions,
which again means this all goes towards repaying investors' capital contributions, and your share would be
$166.67. In year 3, there is $2,500 in distributions, which again means this all goes towards repaying
investors' capital contributions, and your share would be $83.33. Therefore after 3 years,
the project made $22,500, total investors recouped $22,500 out of their $30,000 investment, and you
recouped $750 of your $1,000 investment.