Neil here. Let’s talk money.

During a pitch meeting, you need to ask the founding team how much money they plan to pay themselves. In other words, what will their salaries look like?

It’s a little uncomfortable, but it’s crucial that you know this information.

Asking this question is one of the first lessons I taught way back when Angels & Entrepreneurs first launched. In my opinion, it’s one of the most important. Here’s why.

When you invest in a company, you’re adding your own hard-earned cash to the pile. Startups will compensate their founders from that pile, meaning your individual investment will contribute to how much they get paid.

As an angel investor, you’re in for the long haul. Your original investment (and future investments, if you so choose) will go toward anything from hiring new teammates to developing the product or service, to advertising, to renting out space, and more.

If a founder is taking too much money from that pile, that takes away from the bottom line used to grow the business.

Now of course, everyone needs to make money.

No entrepreneur should have to go without a paycheck… But if they’re making enough money to buy fancy cars and houses while their business suffers, that’s a huge red flag.

Instead, a founding team should be focused on doing what it takes to develop and scale their venture. They should have skin in the game, meaning they have a stake in their own company.

If it succeeds, they succeed. If it doesn’t, they don’t either.

That’s why I always look for deals with investor-friendly terms. I want to see a founding team that wants their investors to benefit just as much as they want themselves to benefit.

Sometimes, these deal terms go beyond just offering investors a stake in the company. I’m talking perks like bonus shares or entirely unique investment structures that offer investors the chance to see more returns than they would with a traditional stake.

Another example is a revenue-share deal. In essence, this means that investors will receive a percentage of the money that a company brings in. Each time the company makes a buck, their investors will see a return.

With revenue-share deals, it’s important to make sure that a company has the ability to grow and scale their product quickly. You want to make sure that there’s a real potential for revenue… otherwise there’s nothing to share, right?

But at the end of the day, these types of deals are rare and exceptional. When this type of opportunity presents itself, I always recommend checking it out.

In fact, you can dive into the world of revenue sharing today by checking out details on a company I’ve been eyeing for quite a while. Let me fill you in…

  1. This company has the potential to do $52 billion in sales in its first year.
  2. It’s building a groundbreaking new tech device with 100,000 purchase orders across stores like Walmart, Target, and Best Buy.
  3. And most importantly, it’s planning to start cutting checks just weeks after its product launches… which is planned for this year.
These deal terms are available only until April 15th, so the earlier you can check it out the better. You only have two weeks!

Just click here to grab the details you need today, and I’ll be back soon with another update.

Until next time,

Neil Patel