This post is more for ordinary people than it is for people who run businesses.
Ever since I wrote this post, I’ve been thinking a lot about this subject. My brain’s been running wild, as it does when it hasn’t yet on a particular subject.
First I’ll talk about a specific idea I have, then I’ll talk about my overall thoughts about this entire subject…
We have sites like Kickstarter and GoFundMe for crowdfunding projects (or medical expenses, because that’s the only way Americans can pay for hospital visits), but we should also have a site or two investing. Or, there’s Patreon, for just funding people instead of their individual projects. I think there should be a site or two for investing. See, Kickstarter and Patreon have creators just promise perks, and perks on these sites are never ROIs (returns on investment). They probably forbid it.
What if, on these investment sites, you crowdfund a movie project, or a new card game, a new kind of candy, etc., and then through the site you track sales, and then every three months or so, the site automatically sends whatever percentage each of your crowdfunders agreed to for their investment and get paid that percentage of your sales?
For example, you’re going to crowdfund a movie, you plan on having all revenue from this movie come from Blu-Ray sales, and Johnny Smith from Houston invested $500 in exchange for 1% of all sales. Your movie is finished, and the Blu-Ray sales make $80,000 in the first three months. Johnny Smith would then make $800, sent directly to him from the site. Maybe sales would slow down after that, with the movie only making $10,000 in the next three months, and Johnny Smith only gets $100; the next three months only return $700, and Johnny gets $7. Point is, Johnny would keep getting a percentage of sales indefinitely, even if it’s only a few cents every few months (which it hopefully wouldn’t be), because that’s how royalties work.
I don’t know how all the finer details would work. Hell, I don’t even know if such sites would even be legal to create. I assume they could, given GoFundMe, Patreon, and Kickstarter’s existence.
If anyone uses my idea, keep me in mind.
On a bit of a different note, average people should invest more. Whether or not it’s through the internet at all, I believe everybody, everywhere, should be more interested in investing in projects, or startups. I think people should be more interested in outright investing in things because 1), it would encourage people who invest to invest more than just a few bucks, like people do on Kickstarter and GoFundMe, and 2), the beauty of investing is the chance of a hefty return. Again, I’m not talking about just through the internet, I’m (actually) talking about ordinary people investing in people they personally know. Friends, family, or maybe acquaintances, too.
Always make sure every detail of such agreements is written and signed by everyone involved, and don’t rely on verbal promises. Just a tip. (A very, very valuable tip.)
Everyone has ideas. Everyone has dreams and aspirations. I remember as a teenager, my close friends and I loved making videos for YouTube, and we even attempted making a movie, and I just think, What if we’d had the sense to have everyone we know invest in these projects? We possibly could have been a real studio by now. Of course, usually those types of investments are most often ownership stakes, not based on royalties, but still.
I grew up knowing people who loved building computers, building robotics, and even some who wanted to create their own card game. Not sure here, but I don’t think any of these ambitions went anywhere. It might hearken back to what I said about how boomers think, with their short-sightedness and all. (Seriously, there are kids, actual kids, becoming millionaires playing in video game tournaments…)
All of this hearkens back to what I’ve said about the superior value of creating jobs instead of just finding jobs…