[NOTE: I updated this post with more detailed examples]

Background: part 3, part 2 and part 1.

In the interview with Jon Gunn in Part 3, I mention that I’ve been thinking of what “version 2” of the Personal Investment Contract might look like.  Here’s the model:

1. Investment Amount - Same as before, intended to give the individual some time to pursue their passion (or figure out what that is) without having to worry about how to support themselves.
2. Maximum Return - The cumulative total amount that the investor can receive as return on their investment.  If and when this amount is reached, the contract is over.
3. Annual Exclusion - The amount of annual income the entrepreneur can make without having to share any of it with the investor.
4. Minimum Revenue Share - The minimum percentage of gross income the entrepreneur returns to the investor after deducting the Annual Exclusion.

Following are some examples of various different career paths and uses for a …