Investor needed: $500k per month internet business - 75% Profit

**Highlandsoul** · 12-10-2011 02:11 AM

Please read below. I have laid everything out and I think someone will want to get in on this with me:

Survey-Lead Business:

Offer "hot" items (Gaming Consoles, Ipods, etc) in return for filling out surveys (we get paid between $1 and $5 per survey). Doesn't sound like much, but listen.

Ipods, Playstation 3's, etc all generate A LOT of search inquiries online. The people looking for the market to buy. We advertise these products on Google and Facebook.

Image ads will cost around 0.15 per click. With a conversion rate of around 5%. At 20,000 clicks per day from ads, we would generate about 1000 orders per day. Cost of acquisition per client: $3.

We need to cover the $3 we spent to acquire each and every client.

At the beginning of each signup they must pay $9.99 per month to maintain their account with us. We call this a Membership fee.

We have just recouped our $3 fee x 3. Now its onto the real moneymaker.

After they signup, they are presented with how many survey points they have to accumulate their desired product. These 'survey points' are directly tied to how much the product will cost us if someone completes the series of surveys to redeem their product. The points required actually go above the amount required for us to get this product. So whether people complete all surveys and receive their product, we make money; as well as when they do 5 or 10 surveys and get bored and never complete another.

As previously stated, surveys range between $1 and $5. These surveys are nothing more than companies looking for Leads, such as Auto and Health Insurance quotes (we still call them surveys).

Most people don't finish what they start. But a lot of people are excellent starters

I have no metrics for how many surveys on average are completed per account, but I think a very safe estimate is 10 (which, btw is nowhere near the amount of surveys required to redeem their desired product). Anyways. 10 surveys x $3 = $30 (median between 1 and 5.. no its not 2.5 incase you are wondering we dont start at 0)

Ok, here are the figures:

1000 Orders per day
$9.99/mo per order
$30 in surveys done per order
-$3 cost of each order
which comes to: $36990 per day.

Now, there are merchant fee's which range about 3%, server fee's, email/phone support fee's we must account for. I think that the cost of 3-5 email/phone support people is negligible compared to the amount of money we can see here.

Tell me what you think.

**Jefferey13** · 12-11-2011 06:05 PM

Sounds like a complicated and difficult website to create. Are you able to build this kind of a website and create these complex programs and databases that the website would need? If so I am very interested in investing, if you can't do this and need someone else to build it I am not interested. I am very interested in the business, I have no interest in the idea.

**paul2145r** · 12-12-2011 12:14 AM

I think that I am missing something here..

Where in your equations do you account for the cost of the product that they are completing surveys for?

Using a PS3 as an example. The unit is $250, for example. Shipping is another $20. You are earning (theoretically) $3 per survey. At this rate, it will take the member 90 surveys just to break even. If each survey takes 5 minutes (on average), then that is 450 minutes (7.5 hours) to complete. During that time, the user will not be clicking on any ads. You are not generating any additional revenue unless you require more than 90 survey to get the product.f

The $9.99 that you are charging will be a major hurdle. Most of the users/members that will be drawn to this offer will not have a credit/debit card available (minors) or will not have the 'throw-away' money that this type of purchase would be categorized as. If you got rid of this hurdle, then you may be able to get enough people to complete the surveys to cover your costs for the products. Now, you have your other costs to consider.

Servers will run you approximately $2,000 per month, if you are housing them elsewhere. A phone system will be at least $150/month. Add internet connection, and that is an additional $300/month. Hiring three individuals to 'man the phones' will cost minimum wage, plus benefits and payroll taxes. If you are a horrible employer and don't provide any benefits, you are still looking at $4992 per month for these employees. Because of the nature of the site, you will have hackers working on it 24/7. These attacks will require a full-time programmer (or team). Programmers will run you $3500+ per month, per individual.

Where will your business be based out of? A cheap warehouse/office unit is $1200/month and up. Electric is $200/month. Water may be included, and may not. Physical security is another $100/month. Insurance depends on what you have to insure, but won't be any less than $300/month.

Ahh - don't forget Worker's Compensation for all of your talented staff. $1200 per year is if you are lucky, so let's say another $100 per month. All-in-all, you are looking at an overhead of at least $12850 per month (give or take a few $'s). We haven't even gone into the advertising, affiliate program costs and incentives it would take just to drive traffic to the site. All-in-all, you are working uphill before you even start. It may work, I would recommend taking another look at your approach.

**Highlandsoul** · 12-12-2011 10:56 AM

Originally Posted by Jefferey13

Sounds like a complicated and difficult website to create. Are you able to build this kind of a website and create these complex programs and databases that the website would need? If so I am very interested in investing, if you can't do this and need someone else to build it I am not interested. I am very interested in the business, I have no interest in the idea.

You are interested in the business, not the idea? I'm sorry, but how can you like the one without the other?

**Highlandsoul** · 12-12-2011 11:05 AM

Originally Posted by paul2145r

I think that I am missing something here..

Where in your equations do you account for the cost of the product that they are completing surveys for?

- Item's are awarded on a point system. Obviously, we would not set the point system where we'd only break even, we would profit.

Using a PS3 as an example. The unit is $250, for example. Shipping is another $20. You are earning (theoretically) $3 per survey. At this rate, it will take the member 90 surveys just to break even. If each survey takes 5 minutes (on average), then that is 450 minutes (7.5 hours) to complete. During that time, the user will not be clicking on any ads. You are not generating any additional revenue unless you require more than 90 survey to get the product.f

75% of the people will fail to complete the required points. It's a fact of life people are lazy. Yes, this is included in our business model. It's kind of like how a gym oversells memberships, knowing full well that only a certain percentage actually show up.

The $9.99 that you are charging will be a major hurdle. Most of the users/members that will be drawn to this offer will not have a credit/debit card available (minors) or will not have the 'throw-away' money that this type of purchase would be categorized as. If you got rid of this hurdle, then you may be able to get enough people to complete the surveys to cover your costs for the products. Now, you have your other costs to consider.

$9.99 is not difficult at all, but can be done away with. I was thinking about setting up two sites, one with the $9.99 introductory fee and the other without. The $9.99 is there to get people to commit to fill out surveys. We make a lot of money if we can get people to do surveys.

Servers will run you approximately $2,000 per month, if you are housing them elsewhere. A phone system will be at least $150/month. Add internet connection, and that is an additional $300/month. Hiring three individuals to 'man the phones' will cost minimum wage, plus benefits and payroll taxes. If you are a horrible employer and don't provide any benefits, you are still looking at $4992 per month for these employees. Because of the nature of the site, you will have hackers working on it 24/7. These attacks will require a full-time programmer (or team). Programmers will run you $3500+ per month, per individual.

I don't know where you get the $2000/mo figure for a server. Did you mean $200/mo ? Because that is much more realistic. I can contract out the email/phone support and can just 1099 the work. No need to insurance for someone sitting at their own house. In regards to 'hack proofing' the website. That is just using the right kind of server with firewall and having solid code.

Where will your business be based out of? A cheap warehouse/office unit is $1200/month and up. Electric is $200/month. Water may be included, and may not. Physical security is another $100/month. Insurance depends on what you have to insure, but won't be any less than $300/month.

Ahh - don't forget Worker's Compensation for all of your talented staff. $1200 per year is if you are lucky, so let's say another $100 per month. All-in-all, you are looking at an overhead of at least $12850 per month (give or take a few $'s). We haven't even gone into the advertising, affiliate program costs and incentives it would take just to drive traffic to the site. All-in-all, you are working uphill before you even start. It may work, I would recommend taking another look at your approach.

Again, you are placing additional parameters on my online business. Who said I needed an office to start? We are in the year 2011 after all. People do work online. I dont need workers comp for anything.

**Jefferey13** · 12-13-2011 05:08 PM

Weird you don't know the difference between a business and an idea I must say. All business start from ideas, but only select people can take an idea and put into effect successfully. So if you have to have other people create the business for you (ie put your ideas into play) then I am not interested in just the idea. However if you have the skills to make and create this business yourself I am interested. You gave a short reply, but you never even answered the question I posed.

**Highlandsoul** · 12-13-2011 06:04 PM

I disagree. My idea/business plan is indestructible. I've been involved in businesses that generated 5 figures daily, with huge profit margins. What we have hear is a diamond waiting to be picked up. I've even low-balled the conversion figures, to play it safe. 5% for something like this is half of what it should be - 10%. When the math adds up, when the idea is solid, you have a gameplan.

Obviously you are not the right candidate. I want someone who can see the forest THROUGH the trees. Lead generation/survey business is huge, and ginormous if done with any semblance of know-how.

**ChristianBrown09** · 12-13-2011 07:54 PM

How much capital are you requiring?

**Highlandsoul** · 12-13-2011 09:37 PM

$10k for advertising budget, including craigslist automation (free advertising by posting hot items like xbox 360 consoles in the Buy/sell electronics and gaming sections - will get huge results).

$5k for coding. Should take no more than 3 weeks to complete with 2 coders working on it.

**ChristianBrown09** · 12-13-2011 09:59 PM

I'm all down for the business plan, but your valuation is kinda skewed. My business partner is an established Internet marketer, so I'm pretty educated in the field. I just thought I could connect you two and give you access to my resources. I have in house coders and graphic designers.

**Highlandsoul** · 12-13-2011 10:29 PM

Valuation of what is skewed?

**ChristianBrown09** · 12-13-2011 10:52 PM

I completely agree with your methods actually. Ryan eagle is my partners account manager, so I know that those numbers are possible. But could you start out with a smaller number and have tasks outsourced? That's usually how I see money made. Cutting costs.

**Highlandsoul** · 12-13-2011 11:08 PM

Which tasks outsourced? The code? I've tried outsourcing, and its a very hit and most likely miss scenario.. Now given, the only thing that is lost if you're smart is time, as money is not paid until the job is complete. Low cost coding outsourcing is only asking for the job to stall. Also, I believe in paying american/european coders instead of indians (no offense)

Outsource CL posting? Again, asking for trouble. With a craigslist bot / ip solution, 1) it will pay for itself very fast and 2) you don't rely on manual posters..

**ChristianBrown09** · 12-14-2011 12:37 PM

I actually love your idea, but as an internet marketer I know that it takes a certain type of person to succeed. A brilliantly creative person who is usually a step ahead of their peers. I'm assuming that this is you, but on the other hand, Internet marketers who do what you do are usually solo treps who work better alone instead of with a partner. I have no doubt that you'll make this money once you get the investment, but I'm just weary of investing in a string of internet marketing campaigns instead of actual companies. If you disappear with my money, avoiding me is as simple as changing your email address. I have no physical record of who you are or where to find you. lol Good luck with raising your funds, and congratulations in advanced to the money that you'll make but I suggest finding funds from a physical person instead of online. Again, no offense to you.

**Highlandsoul** · 12-14-2011 03:06 PM

I understand your concerns, but here we are, in the "Looking For Capital/Biz Partners" forum category. Dealing with someone irl as opposed to online doesn't change anything. If they will screw you online, they'll do it in person. I learned a long time ago that the key to success online or off is by keeping relationships instead of burning bridges. Again, either a con man or legit person would realize the same thing. It is a risk, everything but investing in gold is a risk.