MICROINVESTMENT (CROWDFUNDING)
What are the risks?
There are really three we think worth considering. If for some reason we don't survive as a company, then you will have lost your investment.
Another risk is if we don't sell any websites.
In this funding round we are putting up 5,000 sites for purchase at wholesale, so if it took us 5 years to sell those, you'd only end up with a 20% per annum return on your money.
If we sold 5,000 in the first year, you'd be getting 100% per annum.
If we sold more than that (let's say our sales strategy worked out really well), you could actually reinvest returns in more sites if they were available and do even better.
And lastly, if people bought subscriptions for the first year but didn't renew them after that, there's a risk that your website might be 'unrented' for a period of time.
However, you can always alleviate the risk of your sites not selling by becoming an Affiliate yourself and talking to small business owners you know who might be needing a website. That will also increase your returns as you would earn commission on any sales.
