How about this for a business concept?

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jv2222

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Dec 16, 2008
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Hi,

What do you think of the concept of a membership site
that was also a very low entry price point investors club...

Lets call it INVESTCLUB

So the idea would be to find 100 people to subscribe to
INVESTCLUB for $100 p/m. (It could also have 50 members
@ $200 p/m. 25 @ $400 etc.)

Then, the people who run INVESTCLUB (i.e me & my programming
buddies) would use the money to live off, and build a product
that was decided upon by all the members.

Then, when the product was complete it would have a
huge product launch, and be marketed by all 100 members -
who would all share equally in the profit (as an affiliate AND an investor).

INVESTCLUB would also include access to a member
only forum where the 100 members could:

- Follow the progress of the project on a daily basis
- Help guide the progress of the project & marketing
- Meet other members and start joint ventures
- Brainstorm other s**t cool ideas
- Swap lists etc.

The INVESTCLUB milestones would look something like this:

- Use product launch formula to launch INVESTCLUB (1 month)
- Accept an absolute maximum of 100 members join
- Use the INVESTCLUB forum to brainstorm a GREAT product to make
- INVESTCLUB builds the product (3 months)
- INVESTCLUB launches the product with the help of the
100 members and their list (1 month)

Benefits to INVESTCLUB members

- Be part of something truly unique and new
- Experience the rush of investment
- Equal share in a product that 100 peer group members
also think will make s**t loads of cash
- Make x% money on the product as an Affiliate
- Make money on the product as an equal owner
- Continaul ongoing commission for as long as the product sells

So if it makes 1m it's 10k for each member + affiliate commissions on top
as well as all members learning a lot along the way & making new serious
contacts (with a max cost of something like $600 per member spread over 6 months)

Once the product is released, launched & profitable then
the $100 p/m payments stop & INVESTCLUB winds down....
Untill INVESTCLUB 2.0. when we start the whole process over
again (but probably with higher stakes, cos now we're s**t hot at it)

What do you think?

JV :)
 


Do it.

Who cares what anybody else says?

Most are gonna tell you it's gonna fail anywayz...
 
So let me get this straight, you are going to charge me $100 to join your investment club and then you will pool my money with the money of other "investors" to create a product which from the way you're talking makes me assume it will be yet another "how to make money on clickbank" type product. Then, everybody in this "investment club" will promote the product and assuming it makes $1 million in sales I will get $10,000?

This sounds like a stupid idea, comrade.
 
jv2222 said:
What do you think of the concept of a membership site that was also a very low entry price point investors club...

Lets call it INVESTCLUB

So the idea would be to find 100 people to subscribe to
INVESTCLUB for $100 p/m. (It could also have 50 members
@ $200 p/m. 25 @ $400 etc.)
Click to expand...

Wow. I had to read this a couple of times. You want a group of people to simply give up $10k a month, every month until you decide to release an unknown product? Better idea, risk your own money, or create a business plan and get a $120,000 bank loan. We are in the crappy part of the economic business cycle called a recession. Kind of makes certain plans and dreams difficult to achieve.

jv2222 said:
Then, the people who run INVESTCLUB (i.e me & my programming buddies) would use the money to live off, and build a product that was decided upon by all the members.
Click to expand...

You would need everything in writing, especially between your club members, and you and your programming buddies. Explain how you will handle disagreements. Who has control over the funds? Where will the funds be kept? How will you prepare financial reports and pay taxes?

jv2222 said:
Then, when the product was complete it would have a huge product launch, and be marketed by all 100 members -
who would all share equally in the profit (as an affiliate AND an investor).
Click to expand...

For your product launch what is your marketing plan? You will need more than just a "huge product launch" because you have to carefully consider where your marketing dollars should be spent. Which marketing channels will give you the best marketing response? What are your goals and sales targets? Who is your target market? You will need to complete primary research to show there is evidence of market need. You will need to complete secondary research to show the overal market trends and outlook.

By the way, there are other affiliate opportunities your club members could take advantage of, instead of yours, that does not require any type of payment upfront. What is your competitive advantage?

jv2222 said:
INVESTCLUB would also include access to a member only forum where the 100 members could:

- Follow the progress of the project on a daily basis
- Help guide the progress of the project & marketing
- Meet other members and start joint ventures
- Brainstorm other s**t cool ideas
- Swap lists etc.
Click to expand...

Great! Is this type of members only access really worth the price of admission? Every month?

jv2222 said:
The INVESTCLUB milestones would look something like this:

- Use product launch formula to launch INVESTCLUB (1 month)
- Accept an absolute maximum of 100 members join
- Use the INVESTCLUB forum to brainstorm a GREAT product to make
- INVESTCLUB builds the product (3 months)
- INVESTCLUB launches the product with the help of the
100 members and their list (1 month)
Click to expand...

This is about six months? What are your contingency plans if a milestone is delayed or falls behind schedule? Who will serve as the project manager? What software will you use to keep track of everything and communicate with your club members and programmers?


jv2222 said:
Benefits to INVESTCLUB members

- Be part of something truly unique and new
- Experience the rush of investment
- Equal share in a product that 100 peer group members
also think will make s**t loads of cash
- Make x% money on the product as an Affiliate
- Make money on the product as an equal owner
- Continaul ongoing commission for as long as the product sells
Click to expand...

Use some of the money on spell check. Are these the only beneifts? It would help if you have a proven track record first, perhaps using your own money or loan money. Do the timeline, make money, pay back the loan, and use those exciting results to promote round two, where you ask for people to actually risk money each month. That way you can say, we've done it before, and now we're ready to do it again on a larger scale.

jv2222 said:
So if it makes 1m it's 10k for each member + affiliate commissions on top as well as all members learning a lot along the way & making new serious contacts (with a max cost of something like $600 per member spread over 6 months)

Once the product is released, launched & profitable then the $100 p/m payments stop & INVESTCLUB winds down.... Untill INVESTCLUB 2.0. when we start the whole process over again (but probably with higher stakes, cos now we're s**t hot at it)
Click to expand...

Right . . . before you start talking about the forecasting of future profits, we really need to see a written business plan and solid financials. Clearly state all of your assumptions so we can figure out for ourselves what is real and what is being made up.
 
The reason it wouldn't work is because of the following reasons:

Not all marketers are made equal.

Some people just can't market, some can.

Those who can certainly don't want to share their profit with people doing next to nothing. If it goes off of commission, then they could just promote any old affiliate program and not spend 100+ per month.

Nice idea but needs some work.
 
Surprised you've had a better response here than with your post to the warrior wankers, but you fail at:

Then, the people who run INVESTCLUB... would use the money to live off
Click to expand...

If the product was decent (not get rich quick crap) and if there was legally binding paperwork stating that 100% of the investment would go into developing it then it might work... Otherwise, GL pitching it to the poor fuckers over at the other WF.
 
ummm... this is called "investing"

1. incorporate
2. offer shares to private investors for $$$
3. do stuff / steal underpants
4. profit
5. distribute to investors on pro-rata share of their investment $$$
 
Nice concept, but since you are selling it as an "investment", you become subject to a wide amount of regulations, none of which you will want to adhere to. Honestly, I would walk away from the idea, or rework it to remove all references to "investment".
 
I originally thought this was one of those pyramid scams because I only read the first line. After reading the entire thing, I'd say you will not have any luck with this type of set up. It won't be equal amongst the affiliates because (like said above) not all affils are created equal.
 
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