I really have a self-control problem… it’s obvious that I’m already up to my neck in various projects and websites. It’s the main reason why my post frequency has been slowly dropping over the past year.
And it’s not like things are slowing down; my $10,000 investment on Movie-Vault.com’s revamp is nearing completion and will be launching in about a week which will require my focus and energy.
So why then have I just started yet another project?
I kept telling myself not to; that I already had more than enough on my plate, to say the least. And with the big revamp of Movie-Vault.com which I consider to be a massive project, adding yet another project to my list should have been the last thing on my mind.
But the idea kept finding its way back into my head, and I couldn’t get rid of it. When that happens, which isn’t all that often, the only thing I can do to stop thinking about it is to give in and develop the site.
And so here I am again, starting yet another project. And this one is pretty big, too.
Since I only decided to go ahead with the project today, I am not revealing very much about it yet since I don’t want others to possibly copy my idea and develop it before I do. As development progresses, I’ll reveal more information.
Right now, all I can say is that it’s a flash-based multiplayer game.
The game will be free but there will be a paid membership which is optional. I am considering adding two membership options, each being monthly. The “Bronze” will probably be somewhere around $1.99/month and the “Silver” $4.99/month. If the game takes off, it’s obviously easy to add higher-priced Gold and Platinum accounts.
In addition to the paid memberships, there will be ads on the site to help support the free non-paying accounts, which will most-likely account for 95% of the members.
Want to Invest?
For this project, I think I think I’m going to accept a limited number of investors – basically acting as shareholders, which is the reason for this post.
I have not yet received the quotes for this project, but I am assuming it will cost between $5,000-$10,000. So, it’s not the biggest project. Now, depending on the interest (or lack thereof) on investing in this, I may look to get the game done in a higher-quality and level of scale, and invest more into it, something like $10k-$25k, but I think that $5k-$10k should cover pretty much what is needed for what I want.
Note that nothing here is set in stone, especially since I have yet to receive the quotes for the project and the fact that I’m sure some of you will provide better insight into investment options and numbers.
I am basing the following options on the project costing $5,000:
|$1,000||15% for 18 months||5x|
|$2,500||37.5% for 18 months||5x|
|$5,000||75% for 18 months||5x|
I will only accept investors up to when the cost of the project is met (Ex. If 2 investors want in at the $2,500 level then it will be closed there).
The Return is based on site income, whether it be from advertisements on the site or paid memberships.
If you do the math, the site would need to make a total of $6,666 (bad omen? haha) during the first 18-months in order for you just to break even. This works out to an average of $370 a month. Therefore, if the site manages to make $13k during the first year-and-a-half, you’ve doubled your investment.
There will be a buyout clause, where at any point I can buyout the shareholder for 5x their investment. This buyout will be on top of any return they have received so far. For example, if an investor invests $1,000 and after 5 months I want to buy them out, they will keep whatever Returns they have made so far, plus $5,000 (5x) for the buyout.
The 18-month Return timeframe will begin once the site is finished its development and goes live to the public.
Why do you want investors? Don’t you have confidence in your own projects?
This is the first and most natural question, and one that I’d personally ask if I were in your position.
I always have confidence in any project that I end up taking on, or I wouldn’t take them on in the first place. And I have already started the steps in getting this project started (I’m currently getting quotes). I’m therefore ready to fund this project entirely myself, but would rather have investors in this for 2 reasons:
1. I want to minimize my risk.
I already have a lot of money tied up in various projects (Movie-Vault.com revamp, my affiliate marketing efforts, and my other sites) at the moment and don’t have a whole lot of money to spend on new projects. I can and will fund this entirely myself if I need to, but would feel more comfortable if I had investors.
2. I think this would make for a good blog post series.
As ridiculous as this may sound, I can assure you this is true. I often do things for the side-benefit of it being good blog content, and this is one of those things.
I think it’d make for an interesting read to see how both investors in an online project fare from their investment, and how the project itself turns out.
I’m guaranteed to make money on this right?
No! You’re not guaranteed anything. Not a penny. You could invest the full $5,000 (or whatever it may be) and end up $5,000 poorer. This is an investment, and with investment comes risk.
The site could easily fail miserably, so you should feel comfortable with the investment and level of risk involved, and not have to take out a second mortgage on your house if you make nothing back.
Many of my projects have failed, so be prepared for that.
Wait a second, why do you get 25% for doing nothing?
First, it’s my idea and nobody is forcing you to invest
But the main reason is that I’m not “doing nothing”. I am overseeing the project and while that may sound easy, I put in countless hours seeing that everything is done correctly. For example, just overseeing the revamp of Movie-Vault.com, I’ve already put in a good 40-50 work hours working with the developers.
As an investor, you’re the one doing nothing. I’m the one actually working on the site.
Do I get partial ownership of the site along with my return?
No. Merendi Networks Inc. retains full copyright and ownership of the site. Your investment is purely monetary and based on the site’s income.
How can I trust you to report the real earnings and pay me correctly?
You’ll have to trust me and have full confidence in me to report and pay the correct amount as this project isn’t big enough for me to set up some type of joint-PayPal account, etc.
I can give screenshots of PayPal payments, etc. and set investors up with access to the Analytics stats, but in the end you’ll have to trust me. If you’re even the slightest bit apprehensive about trusting me then you shouldn’t consider investing.
Give me some examples of your other projects that have made money
PublisherChallenge.com was my most recent project (since Movie-Vault.com hasn’t relaunched yet) and cost me roughly $7,000 to develop. At 10-months-old, it has brought in $55,000 to date.
PokerForums.org is around 5 years old and has cost me roughly $3,000 to develop and maintain. It has brought in close to $250,000 in site revenue.
TylerCruz.com is several years old and has cost me roughly $1,000 to develop and maintain. It has brought in over $30,000 in revenue, not including affiliate referrals.
Each of these are good examples of where the investment wasn’t very much, but the sites required a lot of my own time and effort. This is more evidence to respond to the “Wait a second, why do you get 25% for doing nothing?” question above.
Remember though, many of my projects have failed, so don’t expect ROI’s such as these to be guaranteed.
How would I sent you the money to invest?
This would depend partly on how the developer is willing to accept payment. If he is willing to accept payment from a variety of sources then having you send the developer the payment would be the best option.
Otherwise, I’d probably just have you PayPal me the money and I’d probably get you to pay the PayPal fees as well (2.9% + $0.30 if you’re from the US/Canada, otherwise 3.9% + $0.30).
I want to invest, but I have a few questions…
Contact me for any questions you have or if you’re ready to invest. I will only divulge details of the site to serious buyers.