Quote from: Ayers on April 17, 2017, 04:06:53 PM

Quote from: KaydenC on April 17, 2017, 10:20:02 AM

Quote from: Ayers on April 17, 2017, 09:55:58 AM

Quote from: RentGPU on April 16, 2017, 12:03:29 PM

You can do what i did , i didn't make them pay in any of the setting up costs , i built everything and i have free electricity , after building everything i charged them 1/3 of thier profits to host the rigs in my place and taking care of everything and the offer was fair enough for them.

i would never host anything if you are asking 33% of my revenue, this is stupid crazy man, would kill my profit 100% and roi would take much longer, and asking 33% isn't very different than mining with very expensive electricity, so why i should mine in your facility? i just keep mining with my expensive electricity

Let's say a really busy person wants to invest a million dollars into hash rate. He'll need to take time off to setup the facility, and perhaps manage the farm full time. He may not have the skills to do it himself and his time is valuable.

So he partners with a person who has the time and knowledge to manage his investment. It's similar to hedge funds where they charge 2% management fee + 20% performance (profits).

Not saying 33% is justifiable or anything, but just pointing out both parties can benefit from such arrangements. If electricity is free (say your partner hydroelectric power), 33% is OK imo. Simply send your partner cheap 290/380/390, poor hash/watt but great $/hash cards.

Also, in December last year an Rx 480 only made $1 a day, and it costed me $0.50 to run with my expensive electricity. That's 50% gone, not 33%.

what you say it's true when the profit is very low, but the profit now is high, one gpu is making $5 per day, if i give to him 33% i'm losing $50 a month for each gpu, this is crazy dude and much more than my current electricity

That is true. There are 2 options for the guy with $1 million.

1) Find a guy with the ability to manage rigs, then hire him on salary. Rent and setup the facility (cooling, electricity etc). $1 million is like 500 rigs I guess, 1 guy can handle it, you may need to hire another person in the future. You take the upside, but suffer more during times of low profit. If you have $10 million, well you got a lot more work to do.

2) Be partners with somebody. Your money combined with their time, know-how, and very cheap electricity. Their compensation is 33% profit. If you want to invest another $10 million, leave it to your partner to expand facility, hire employees etc. Sleep well knowing that your partner's interest is the same as yours; he will do his best to maximize profit simply because he gets paid more. However you make less during times of high profit.

Unfortunately choosing option 1 in times of high profit, then option 2 in times of low profit is not possible. People with 60 hour work weeks who make millions a year may see option 2 to be better. In a sense it is less risk too, if the partner has cheap electricity.