Group Mining

[z0n0]

Hey guys, I would like some tips/info.

So, me and 3 other friends would like to build mining rigs. For start we were thinking 2 rigs with 6 GPUs.
From all of us, only me has some knowledge about crypto mining (crypto world), they were just recently found out about it, and they would like to give it a try with mining.
So, since I'm the only one who will be doing the build, setting wallets, pool workers etc (they only want to invest some money for hardware and let me do all the stuff) what do you think would be fair for me?
Should I invest less, should I not pay for electricity, should I get some % fee every month...?
What do you guys think it's best situation for me (and them)? I would like to be fair, but still I believe I should earn something extra for my work and maintenance.

I would love to hear your opinions.
Thnaks!

[Jdope]

You should probably get a percentage of the profit, you all pay electricity and when the profit is due at the end of the month you take a cut then split it. wouldn't suggest anything more than 5-10% though, most likely there's gonna be work setting it up then nothing. also you should teach them how to do it if they're interested enough, could take the weight of your back in a while.

[YIz]

Ask them for a higher percentage, how many cards are we talking about exactly?

[couture]

I have the same conundrum with some friends of mine

I was thinking of doing:

Each friend (investor) buys (pays for me to buy) one (or more) graphics card(s) (on my recommendation).

Then I guarantee to pay back 25% of the cost of the graphics card(s) each month for the first three months
Anything the gpu earns over that 25% I keep as profit and goes to paying off the rest of the rig

Then from month 4 through to 8 we split whatever the gpu(s) earn per month 50/50

Then in month 9 I would buy the gpu outright for 10% of its original price - any remaining profit it earns is kept by myself or any remaining scrap value I can sell it for is kept by me

They can then buy more gpus as and when they are available and they have cash to do so


This of course depends on the gpus current and forecast returns and break even targets as well as scrap value estimates for future liquidation

Thoughts and modifications welcome

[marigold]

What kind of hardware do you plan to buy, I also want to start to build a rig.
I am not really new to the crypto sphere, I just mined with 3cards back in 2013, but not for Long only 3month or so
and now I want to do it again.


Currently I am searchin for some rx480, but could not find anything in Europe.
I have read and found some great Cluster PCI Expansion Cards where you can put 4 Cards into a cluster which only use 1PCI SLOT on
the Motherboard. Did anyone now something about it. With this solution it is possible to put 16Cards on one Board.

It couldnt be possible that there are only the same limits as in 2013, or am I wrong?

[does]

Hey guys, I would like some tips/info.

So, me and 3 other friends would like to build mining rigs. For start we were thinking 2 rigs with 6 GPUs.
From all of us, only me has some knowledge about crypto mining (crypto world), they were just recently found out about it, and they would like to give it a try with mining.
So, since I'm the only one who will be doing the build, setting wallets, pool workers etc (they only want to invest some money for hardware and let me do all the stuff) what do you think would be fair for me?
Should I invest less, should I not pay for electricity, should I get some % fee every month...?
What do you guys think it's best situation for me (and them)? I would like to be fair, but still I believe I should earn something extra for my work and maintenance.

I would love to hear your opinions.
Thnaks!

u have to think how much u worth by that i mean how much ur time is worth,
with out u they cant mine or do anything, since u are the only one in the group who knows everything from setup a mining rig and start mining..
first, u should look how much time u invest in this.
two, if u want to be fair , split all the expenses to 4 u and 3 of ur friends. hardware , electricity .. in other words all cost divided by 4. but when it comes to splitting the reward u should get a bigger portion then they do, since u have put some work to it. and here i am coming back to my first suggestion is check how much time u put into it, and how much ur time worth.
this was one option.
third, if u dont want to invest any money in this but just ur time make sure u write ur self how many hours/days/month u have spent. either way think how much u worth. do u worth 5% of all rewards 9? or 10? or 20?
remmber u are the key here, without u they cant do anything, so its only proffitable for them
here something u should look https://www.youtube.com/watch?v=Mc6VA7Q1vXQ

[chohav]

If they are your friends I don't think you should "charge" them something. If we talk for some close friends, just teach them how to build and maintain rigs and after some time they will split the responsibilities with you. Cheers

[z0n0]

If they are your friends I don't think you should "charge" them something. If we talk for some close friends, just teach them how to build and maintain rigs and after some time they will split the responsibilities with you. Cheers

I would accept that instantly, but they are all: I don't have time to reserch, bla bla bla...So every problem occurs guess who's gonna lose time to fix it.
Thats why I think I should have some benefit of it.

We're thinking of getting 12 cards (6 cards per rig), most likely RX 470/480/570/580, but currently there's nothing in stocks in Europe

[Vaccinus]

who pay for the components take everything, if you want to charge them soemthign for your maintanace and control over their rig because they don't have time to manage, i would to 10-20% to pay electricity and take  a little portion of the profit

[Maxumark]

1. Be very clear what the business arrangement is, and put it in writing. Keep it simple and easy to understand. it can be amended as the need arises.
 There is no point blowing a friendship because of a misunderstanding.

2. Make sure you are getting paid for your time. 8 to 10% depending on the size and scope of the farm. If the burden is on you to build, get running, troubleshoot problems, upgrade, track power, reset rigs at all hours, this adds value to the other investors. As they learn more and start watching rigs you will be getting texts and emails that a rig is down, or dropped a card. If you are not getting compensated you might get a little resentful when everyone else is sleeping and you are up doing Rig maintenance.
Also even if you are not getting paid to keep everything running one of the others may say you are not doing your job if a rig is down for a extended period of time like 2 or 3 hours. Get paid for your responsibility.
 
3. Designate, or see if one of the others will volunteer to take on the accounting for tracking income and expenses. They can receive a agreed 1 or 2% for their record keeping and sending monthly reports. Somebody in the group has got to know Excel.

4. Have fun and hold some coin. 

[Za1n]

I have the same conundrum with some friends of mine

I was thinking of doing:

Each friend (investor) buys (pays for me to buy) one (or more) graphics card(s) (on my recommendation).

Then I guarantee to pay back 25% of the cost of the graphics card(s) each month for the first three months
Anything the gpu earns over that 25% I keep as profit and goes to paying off the rest of the rig

Then from month 4 through to 8 we split whatever the gpu(s) earn per month 50/50

Then in month 9 I would buy the gpu outright for 10% of its original price - any remaining profit it earns is kept by myself or any remaining scrap value I can sell it for is kept by me

They can then buy more gpus as and when they are available and they have cash to do so


This of course depends on the gpus current and forecast returns and break even targets as well as scrap value estimates for future liquidation

Thoughts and modifications welcome

Sounds to me as if you are trying to screw over your friends, or simply use their capital to make yourself some money at their expense. Besides everything else you posted that diverts the lion's share of profit to yourself, after 9 months the GPUs will be worth a lot more than 10% of their original value, so sounds more like a final exit scam on your friends.

I cannot discern how many friends you have from your post, but for sake of arguments lets run through a (imho) better alternative with yourself and say 3 friends.

1: Figure out how much the total cost for the rig will be once setup and running. Divide by 4 and you each are equal investors. Agree with your friends on a setup/support/maintenance fee you will charge each month. Say 10% of the net profit (after electrical), but up to you to negotiate up-front with them the exact amount.
2. Setup and run the rig for a month. Keep careful track of profits and electricity costs. Subtract electrical costs from the total profit, and also subtract the fee for yourself. Divide the remainder (or net) profit equally among everyone 25% each. Keep good records with screenshots (at least 1x a week) showing hashrates, exchange prices, etc. so there are no questions on how you arrived at your calculations. Might also be a good idea to share with them the pool link so they can keep tabs in real time if they wish. Also, you will want the address you are mining to with the investors rigs to be totally separate from any private rigs you are running.
3. Repeat each month as long as rig is profitable. Remember your fee includes you keeping up to date on latest mining software, most efficient settings, best algorithm to mine for max profit, etc.
3. If they do want a buyout at some point, again this should be negotiated up-front, but I think with a more fair value say 33% of purchase price after a year. Maybe 10% after 2 years.

[couture]

I have the same conundrum with some friends of mine

I was thinking of doing:

Each friend (investor) buys (pays for me to buy) one (or more) graphics card(s) (on my recommendation).

Then I guarantee to pay back 25% of the cost of the graphics card(s) each month for the first three months
Anything the gpu earns over that 25% I keep as profit and goes to paying off the rest of the rig

Then from month 4 through to 8 we split whatever the gpu(s) earn per month 50/50

Then in month 9 I would buy the gpu outright for 10% of its original price - any remaining profit it earns is kept by myself or any remaining scrap value I can sell it for is kept by me

They can then buy more gpus as and when they are available and they have cash to do so


This of course depends on the gpus current and forecast returns and break even targets as well as scrap value estimates for future liquidation

Thoughts and modifications welcome

Sounds to me as if you are trying to screw over your friends, or simply use their capital to make yourself some money at their expense. Besides everything else you posted that diverts the lion's share of profit to yourself, after 9 months the GPUs will be worth a lot more than 10% of their original value, so sounds more like a final exit scam on your friends.

I cannot discern how many friends you have from your post, but for sake of arguments lets run through a (imho) better alternative with yourself and say 3 friends.

1: Figure out how much the total cost for the rig will be once setup and running. Divide by 4 and you each are equal investors. Agree with your friends on a setup/support/maintenance fee you will charge each month. Say 10% of the net profit (after electrical), but up to you to negotiate up-front with them the exact amount.
2. Setup and run the rig for a month. Keep careful track of profits and electricity costs. Subtract electrical costs from the total profit, and also subtract the fee for yourself. Divide the remainder (or net) profit equally among everyone 25% each. Keep good records with screenshots (at least 1x a week) showing hashrates, exchange prices, etc. so there are no questions on how you arrived at your calculations. Might also be a good idea to share with them the pool link so they can keep tabs in real time if they wish. Also, you will want the address you are mining to with the investors rigs to be totally separate from any private rigs you are running.
3. Repeat each month as long as rig is profitable. Remember your fee includes you keeping up to date on latest mining software, most efficient settings, best algorithm to mine for max profit, etc.
3. If they do want a buyout at some point, again this should be negotiated up-front, but I think with a more fair value say 33% of purchase price after a year. Maybe 10% after 2 years.

Apologies Za1n, I sort of blurted the post out on the spot and upon second reading, it does seem a slightly ruthless approach!

Your method is a lot better and would only need correct pricing of the time spent researching, logging and exchanging etc.

Would be a bit easier if mining didnt always seem like such a race!

[z0n0]

https://www.bpm-power.com/it//product/1658348/scheda_video_nvidia_evga_gtx_1060_3gb_pci-e_dvi_hdmi_3xdp_03g-p4-6160-kr.html

Good deal? Should I invest in 6xGPU rig?

[cryptokeyparty]

I think Za1n is onto something.

Let us know when you have an agreement put together, I would like to see it or work with you on putting it together.

[z0n0]

I think Za1n is onto something.

Let us know when you have an agreement put together, I would like to see it or work with you on putting it together.

Actualy we gave up on the idea.
I'm mining on my own.