Requesting feedback for new site

**Sportsfan12** · 10-09-2009 08:05 PM

Hello all,

I would first like to say this is a wonderful site and it is great to be in the surroundings of like-minded people.

Here is my concern: I am starting a new site and one of the major prizes is to offer an Annual Prize of 1% equity in the company for each winner every year.

Sorry I cannot go into detail for obvious reasons, but would that be enticing enough for people to be willing to pay only $20 for the yearly membership in order to have a chance to win that 1% equity.

Or should I give the winner an option of receiving $5,000.00 or take 1% equity in the company?

Please help as any feedback would be appreciated.

Reginald

**ChrisBenjamin** · 10-09-2009 08:14 PM

1% of a lame company is really nothing. It'd have to be pretty blockbuster. Usually equity is pretty valuable and held close to the vest, so giving away 1% as a prize per year doesn't speak much to the quality. Sorry.

Originally Posted by Sportsfan12

Hello all,

I would first like to say this is a wonderful site and it is great to be in the surroundings of like-minded people.

Here is my concern: I am starting a new site and one of the major prizes is to offer an Annual Prize of 1% equity in the company for each winner every year.

Sorry I cannot go into detail for obvious reasons, but would that be enticing enough for people to be willing to pay only $20 for the yearly membership in order to have a chance to win that 1% equity.

Or should I give the winner an option of receiving $5,000.00 or take 1% equity in the company?

Please help as any feedback would be appreciated.

Reginald

**Sportsfan12** · 10-09-2009 08:47 PM

Originally Posted by ChrisBenjamin

1% of a lame company is really nothing. It'd have to be pretty blockbuster. Usually equity is pretty valuable and held close to the vest, so giving away 1% as a prize per year doesn't speak much to the quality. Sorry.

Well, considering I want this to stay a private company, one could consider the members of the site to be investors of the company in their own right.

Google, Yahoo, Youtube, etc all had to start somewhere too. Imagine having 1% of any one of those companies. My site/company has great potential to be a multi-million dollar company.

So offering the 5K would be more enticing to you???

Thanks

**ethansmith** · 10-09-2009 11:05 PM

Here is the issue I see.

Giving away equity year after year is simply not sustainable. You have 100% to start with, and I doubt you will want hand over too much if you still want to retain control. Also, once you have a certain number of shareholders you will be subject to new laws and stipulations regarding your status as a corporation.

It seems to me that the one time cash "prizes" would be your best bet.

**Sportsfan12** · 10-10-2009 12:34 AM

Originally Posted by ethansmith

Here is the issue I see.

Giving away equity year after year is simply not sustainable. You have 100% to start with, and I doubt you will want hand over too much if you still want to retain control. Also, once you have a certain number of shareholders you will be subject to new laws and stipulations regarding your status as a corporation.

It seems to me that the one time cash "prizes" would be your best bet.

Thank you for the feedback... giving away a cash prize seems to be the consensus. Sometimes, I guess its better to keep it simple.

I will post the link on this site once it is all done.

**ethansmith** · 10-11-2009 08:39 PM

Originally Posted by Sportsfan12

Thank you for the feedback... giving away a cash prize seems to be the consensus. Sometimes, I guess its better to keep it simple.

I will post the link on this site once it is all done.

Looking forward to checking it out!