Could you sell yourself like a business?

Factual Questions
1

No I’m not talking about prostitution…

Watching Shark Tank I got to thinking, say someone was in a lot of debt and in a desperate financial situation… Desperate enough that they couldn’t get a loan from any bank. Could they approach someone rich and make them the offer that if they gave them a large amount now (presumably to get out of debt and get back on their feet), they’d give them a percentage of their income for the rest of their life? (“In exchange for $200,000 I’m offering you 5% equity of me…”)

I guess the concept is like a loan but seems a little different in tha they’d owe a percentage of their income to the person who gave them the loan for the rest of their life. Could such a thing be legally binding?

2

No.

Loans are required to state an interest rate on the loan.

You cannot contract a percentage of your future earnings without a cap - like in a divorce agreement or child support.

And you cannot sell your future labor - indentured servitude is illegal.

And only a fool would make such a loan - what if the loser never makes more than minimum wage and gets hit by a car in two years?

And it would take 20 years to pay back assuming you made $200,000 a year and that’s without any ROI.

3

Cite please? All I know is that the 13th Amendment outlawed involuntary servitude. Voluntary is still a okay.

Note that talent agents frequently get their clients to sign away 10-20% of future earnings, with some still getting a small percentage after the client signs with someone else. The thinking is that the first agent is the one that made the client a “star” and is entitled to make money off the client forever.

4

Why not? People agree to royalty deals along those lines all the time. I see no reason why somebody couldn’t do it with their personal income.

5

First, Agents work for a percentage of your earnings, not your future earnings.

The agent gets paid when you do. Old agents earn a cut because their work led to your getting paid. This is simply delayed payment, not any form of “future earnings”…

If you can sell 5% of yourself, why not 100%.

That’s not to say it hasn’t been done. Indeed it has. Joe Louis (the boxer) paid 10% of all his earnings to James J. Braddock (Cinderella Man) as part of the contract to fight him. This contract qualifies as an example of what the OP is asking if its possible since it is a contract of future earnings. ( I know I’m contradicting myself, but I’ll not simple precedent unfurl my argument that it wouldn’t be legal. But since when does legallity prevent something from happening? )

6

It’s called an agency contract and poor actors do it all the time with studios.

7

Pro tip, n00b: This message board is teeming with lawyers, many of whom are here for the lulz that arrant nonsense like this engenders. Although I do happen to agree with you about the unwisdom of the loan.

8

Not exactly what the OP is talking about, but David Bowie securitized and sold the rights to his future royalties on existing songs. He basically shifted future income into the present.

9

[Modding]

Let’s ease up on the hammers a little bit there, Kimmy. This is still GQ. A little less condescension to the new guys would be appreciated.

[/Modding]

10

This was an episode of the Honeymooners. Ralph wanted Norton to lend him money and Ed refused. So Ralph made himself a “corporation” and sold Norton a bunch of shares. After all, as Ralph pointed out, I have a lot of ideas (AKA -> Get rich quick schemes) and one day one will pay off).

Norton buys the shares and a few days later a lady that was a regular on Ralph’s bus dies and it turns out she’s rich. Now Norton stands to get part of Ralph’s inheritance.

The will is read and Ralph is left the woman’s fortune. Unfortunately “forune” isn’t her money but the name of her pet bird.

11

Oh, those Kramdens and their zany hijinks.