Too open ended a question. They work or fail to work based on the diverse factors specific to each individual attempt at trying one.
At their most basic, the idea is that two people who each have animals that they want to breed with ideal matches owned by the other come to some arrangement allowing for that outcome. The details always get... muddy... though.
The best advice you will ever get about breeding loans is that there's no such thing as too much planning. Consider every outcome you can possibly think of and get something in writing detailing an agreement about what happens under those circumstances. Then weigh the risks heavily before going forward.
Some things to consider and questions to answer, common causes of problems or arguments...
Which animal(s) will be sent to which owner?
For what duration?
For what purpose?
How will those animals be maintained?
Who is responsible for the costs of maintenance; food, heating, housing, substrate, supplements?
Who is responsible for veterinary costs?
What happens if one of the animals gets sick or dies while it is on loan?
What happens if the animals that are on loan are carrying a disease or parasite that causes sickness or death in the collection of the person they were loaned to?
How are the responsibilities of incubation and neonate care being split?
How are the costs of incubation and neonate care being split?
How are the babies being divided?
Who gets how many of the offspring?
Who gets which pick of the offspring? First pick, first three picks, different genetic outcomes, even split or does one person get more than the other because of what they are providing to the project?
Who bears what responsibility for shipping mishaps, if something goes wrong getting the loaned animals or the offspring to their respective owners?
Alternatively, how are the profits being divided, if they are sold?
How well do you know the other party involved?
How deeply do you trust the other person involved as a herper?
How deeply do you trust the other person involved as a business partner?
And ultimately... is it worth the worry, risk and headaches that will inevitably arise if something (anything) doesn't go exactly according to plan?
Lots and lots of ways that they can go wrong. Lots of possibilities to consider, outcomes to discuss, agreements to make; my list there is hardly comprehensive, those are just some of the big obvious questions.
There are some... usual... kinds of arrangements, some agreed upon terms that are more common, but ultimately it always comes down to what the involved people decide seems fair to them.
Personally it's only something I'd consider with people I know extremely well and trust implicitly as herpetologists and scrupulously honest individuals. Even then, only if there were significant rewards to be gained through the project and only after exhausting all possibility of simply buying the intended mate outright and just doing the project myself. There's maybe four or five herpers I'd consider getting into a breeding loan with and I know hundreds of 'em that I think are good with reptiles and amphibians, with good reputations. It's just such a risky proposition, with so many pitfalls that can ruin working relationships and even friendships if something unexpected happens.
I guess... having seen some that went right and lots that went wrong, I'd be willing to help you out with whatever information you might find useful if you want to go ahead with one, but I'm not going to take any responsibility if it blows up regardless.
I don't think It would be easy with a person you haven't met that isn't local. I'd be nervous shipping to anyone on a loan, even Kelli, regardless of their reputation. If I were to there would be a lot of paperwork involved to cover loss or death and vet treatment in case of a parasite being transferred. I'd recommend a pre breeding quarantine of 3 months or more. Now say Chrissy (who is local and I have dealt with a lot in person wanted a breeder loan, I'd be fine with it since I knew I could check in at any time, I'd have no second thoughts and would be fine with it.
So much can go wrong, even with someone local. Since you're 10 years old and your parents bear the burden of responsibility of you and your projects, you would be better off acquiring your own to work with in my opinion.
There is absolutely no way that I would ever recommend that anyone get involved in a breeding loan with a minor. I don't care how smart or competent the kid is, or how valuable the potential results. Nobody should ever enter into a contract with a person who cannot be held legally culpable for upholding their end of it.
10$ says an adult aproached him trying to make a quick steal by breeding what he has and ripping him off. I have seen that all too often. I have only done breeding loans with fish, much easier imo. Still a HUGE headache.
Ya I'm 11 not 10 not much of a difference but I was just wondering how they worked and thank everybody for your help (Im not actually going to do one it would be a HUGE difficulty!)
Yeah that breeding loan thing is not a great idea. The safest thing that I would do is loaning funds to purchase a high end animal with the understanding of 50% offspring or reimbursement if the animal dies. Not much profit in leopard geckos to do that though.