Would You Ever Invest In A Small Project?

hitmeasap Level X⁵

June 19, 2016, 3:28 pm

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Would You Ever Invest In A Small Project?

Hello,
As some of you might already know, I do invest in small projects from time to time and I've been doing so for the last year now. With decent results. I would say that I might have earned about 25% in profit or so, in total.

What I would like to ask is:

Would you ever consider to help a novice author to publish his recent ebook for instance? (By providing the necessary funds so he can afford to do it etc.)

Why would you or why would you not?

You would obviously earn commission from each sale. How much would you do it for?

Best Regards,
hitmeasap

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MasterA

MasterA

This is a good question! I will invest into small projects if it is profitable. Generally speaking, smaller projects are less profitable but the advantage is that the risk is lower and if something goes wrong you lose less money. I need to make sure that the project has potential and I always make sure that it will be run by a dedicated team. I find that lots of people are very motivated when they start their new project but after a while, they lose their motivation and just let the project die. I need to ensure that doesn’t happen so I will only invest if they can prove to me that they will be very motivated for a long period of time.

I would help a novice publish their ebook if their ebook is very good quality. I can’t say how much commission I would require because it depends on the ebook. If it is a good ebook, then the risk of it not selling is lower and I will require less commission but if the ebook is not as good, there is a lot more risk so I would require a higher commission rate.

8 years ago

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hitmeasap

hitmeasap

Smaller projects are indeed usually less profitable, but I personally never invest in any larger projects due to the large amount of money I have to invest. I also feel it's more rewarding to help the "little ones" so to speak, at least more rewarding for me, on a personal level. I usually go with 10% or perhaps 15% commissions on each sale, but I also try to get 25% back on each sale until I've recovered my investment. That being said, it's more common that I take the 10% commission on each sale and nothing more than that.

8 years ago

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MasterA

MasterA

I agree with you and I rarely invest into larger projects; I probably only invested into one large project in the past. I mostly try to invest into small projects due to the smaller risk. However, larger projects tend to be more profitable on the long term and another advantage is that you don’t have to manage multiple small projects to earn the same amount of income. When I invest into larger projects, I always do very detailed analysis and I make sure that in the worst case scenario of me losing my investment, I will still be able to afford the lost.

8 years ago

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TommyCarey

TommyCarey

Invest in my newest project!

lol, but being serious if I'm in the position to invest in small projects I will, but only after doing some research and looking over the business plan of what I'm thinking about investing in.

What I look for

Professionalism: If the person who is asking me to invest isn't professional when talking to me, I probably won't invest in them or their project. I won't invest because if they don't act like a professional then they most likely won't run their project in a professional manner. When talking to people or running a business you should always be professional and if they don't show that in the beginning, it's going to be really bad in the end.
Eagerness: If the person is not eager then I'm completely turned off. I will be more willing to invest in something if the person is very eager to get it out there in front of potential clients. Being eager shows drive and that's exactly what you need in order to be successful in todays world because no one will give you an inch in the beginning.
Knowledge: I'm not just talking about someone who has been reading a few books about a subject and wanting to start a business around what their last chapter was about. I'm talking about someone who has internal knowledge about the project and has been in the field for a while and can answer every single question I have and also tell me answers to questions that I didn't know I should ask. Knowledge is power, and it'll help you gain funding ;)

8 years ago

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EliteWriter

EliteWriter

I am a person who does not like taking risks that much and so before making a decision on any form of investment I would definitely want to consider all the possible scenarios and think twice. I believe that when one decides to invest in a small project he should know if the chances for success actually exist, or if it is just plain passion for something. If possible start small and plan ahead, so that in case it fails you do not lose a lot of money.To help make an investment worthwhile you should be willing to go a bit out of your way probably, but if you can do it moneywise I would say give it a go.

8 years ago

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hitmeasap

hitmeasap

I agree with you. Although I've been investing in a lot of, quite crappy projects to be honest, and I've done that due to passion and due to being impulsive. I've found something I like, I've seen what the creators are saying about it and I've just sent them the necessary funds they need without thinking at all. Some of these have been quite successful but most of them have been a total bummer.

Impulsive decisions have worked both ways for me, even though most of these impulsive actions have lost me money, I've actually hired one person from an investment of mine. That project didn't take off at all and I lost money but that person is an amazing guy and we've done much things together ever since.

8 years ago

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ajlancer

ajlancer

Hi hitmeasap thanks for your nice question. I got your basic point but I do not understand what do you main as investment? in term of money or knowledge? I think for every project you have to invest some whether it is big or small. Sometimes you may need to invest money and sometimes it is enough only if you invest knowledge. For example, if you write an eBook, you must to invest your knowledge and if you want to sell by advertising, you may need to invest money. Both are investment firstly knowledge and secondly money. So, for me small and big project does not matter for investment. All needs to do for better achievement.

Thanks by Ajlancer

8 years ago

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hitmeasap

hitmeasap

Hello ajlancer,
Perhaps I could have explained this in a better way. What I wonder is if you would ever consider to invest money (mainly) in other peoples products or services, (in their projects) so you can earn a commission from those projects. By doing this, you can help new people to launch their projects as most new people wouldn't have enough money to invest themselves. Would you consider to invest in such projects, big or small, or do you stay away from it and just focus on your own things instead? If you wouldn't consider this, then I wonder why? What is the main reason for not doing this? Is it due to the risk of losing money or anything else?

Best Regards,
hitmeasap

8 years ago

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Lynne

Lynne

I'm not so sure I would invest in someone's small projects at this stage in my life. I am busy investing in my own small projects!

I do like to get involved with things like Patreon for example and help fund people in that way when something catches my interest. But that is not something I get a return on, it is simply helping someone else get their funding for a project or their content.

8 years ago

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hitmeasap

hitmeasap

I do appreciate that you're helping people to fund their projects on Patreon. That's nice and honorable. But why wouldn't you consider funding other projects so you could actually earn a commission for yourself too?

I realize that one might be in such a position in life not having these possibilities, but I just wonder, is it more due to you being a humble person with less interest in making money yourself, that you would rather help other people with their projects instead of earning commissions yourself?

8 years ago

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vinaya

vinaya

I am interested in small projects, I have done many small projects. For instance, I have written articles for just $2 for a client. I was trying to provide him quality articles so that he will be accepted for adsense on his new site. I published 25 articles on his site and when he applied for Adsense, he was accepted.
I have also helped a new author to get his book published. I did not ask for upfront but accepted to get paid when his book earned.

6 years ago

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Corzhens

Corzhens

It is my policy not to invest money in online undertakings just to be on the safe side. We have to admit that scammers are around us, lurking and just waiting for an opportunity to victimize us. Investing money online is not a good prescription for me. I would rather do the work of a freelancer that gets paid in small amounts than earn big by putting in an investment. Even the publication of an e-book is not a good investment for me.

6 years ago

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