Investment Playground.NET

I’m building a website.

I can’t give too many details without forcing all my readers to sign an NDA. But I will tell you this - it is in suit with the social-driven phenomena, and it involves e-commerce. Furthermore, its a very niche market.

I’ve been working with some business consultants and web designers from Q-Infotech.com and WebBizIdeas.com. They’ve been able to help me frame my mental business plan (not the actual paper business plan - part II of the three-part series is coming on Friday). They ask a lot of good questions. I didn’t realize this - but website designers really can double as business consultants quite seamlessly.

The site is going to be subscription based. I can’t expect more than 500 paying subscribers in a best-case scenario, nor can I expect more than 30,000 total users of the site (some personal finance blogs see 50,000 unique visitors a month!) But the way I see it - if I’m able to attain 10% of the ultimate prime scenario described above, I’m likely to earn a few extra hundred dollars per month. The site is automated, thereby making this passive income.

If I spend $5000 building and marketing this site, and earn merely $100 per month - you may say “What a waste, all that work for $100 per month.” If you did say that, I’d tell you to shutup and then spit in your ice cream. Afterwards I’d invite you to this great website called InvestmentPlayground.net - and explain to you the concept of Return On Investment. In any given year, a great stock picker probably won’t make much more than 20%. And if you average out that stock picker’s record, he won’t make more than 11% annually over several years. The best real estate tycoon won’t make more than 25% annually over several years. Meanwhile, your savings account earns about 3.5% annually. This rate is the ROI Rate: the return on your investment. If you put $1000 into a savings account and earn $50 per year - that’s a 5% return. If you drop $5000 into building a website and earn $1200 per year, that’s right math majors… a 24% return on my investment.

The goal is not to get rich quick. The goal is to maximize my return on investment decisions throughout my life. A $10 loan might earn 20%, a $500,000 rental property might earn 30%. Keep up your investment returns and you’ll be quite pleased with the outcome.

As far as building a website goes - trying to do it yourself sucks. The last two weeks I’ve been trying to build this fancy website, and I’m awful at it. I’m a business man, not a web designer. Stick to what you know. I’ll keep you guys posted on my progress.