Venture Capital Investing For The Average Joe

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sitehoppin capital

Just a week ago, I mentioned through a 2 part post on how to market your blog through correct advertising, but I never really mentioned on how you’re actually investing into your future. When there are investment opportunities that are given to you either on the Internet or in real life, you are the one that decides whether you will go forward with it or not. Investing isn’t actually rocket science because if you have the money, you can just throw it in to the pool, but you may not get as high of a return. I always say that you must know what you’re doing, otherwise you will just throw your money to waste.

The biggest type of investments is through the Stock Market, which I’m sure almost all of you have heard of. Investing into stocks, if done correctly, could make you a whole lot of money, but everything takes time and training. Of course when it comes to the rich asses out there, money isn’t going to be a problem and investing in the wrong stocks would just be a slight fender bender if you know what I mean. I actually do not understand the whole concept of stocks, but I know that people are willing to spends a lot of money by purchasing shares of a company. What I think is without people purchasing shares of a certain company, that company would not be able to grow, which is kind of like a Venture Capital (not Capitalism).

Venture Capital

Before I met Max, the guy behind SiteHoppin’, I never knew what VC stood for. Who would’ve thought VC means Venture Capital and it is a huge type of investment in the real world including the Internet. Venture Capital is probably not heard by most of us average people because it requires higher status people. In other words, if you’re not rich or have some type of “IMAGE”, you probably won’t be able to see yourself investing through VC.

Investing For A Cause

The above was just a small summary of what VC stands for and who can take advantage of it, but I’m sure some of you don’t know what Venture Capital means. Alright, lets throw Entrecard in as an example. Entrecard is becoming a huge thing in the blogosphere and hundreds of new bloggers are joining in on the action, which means the costs of maintenance is growing every single day. A bigger server with bigger resources such as ram and bandwidth is needed to keep Entrecard up and running, but a bigger server means more money.

I just switched from a “Shared Hosting” plan over at Hostgator to a “Dedicated Server”, which means I went from a $10/month server cost to almost $300/month. Luckily Hostgator is sponsoring my blog with the hosting and my future projects. What they’re doing is basically investing in my work because they believe it is for a good cause and a good return. Alright this isn’t Venture Capital, but it is considered investing.

Now back to talking about Entrecard. Graham is currently making only about $1-2,000 a month from advertisements that he is selling through Project Wonderful, but that is NOTHING compared to the costs of his server. If I’m correct, Entrecard needs to use about 4-5 quad-core cpu computers loaded with about 2-4GB of RAM each. If you’re a techie, you would know that those type of system resources is HUGE and most of us will never be able to use that much. At the current cost of dedicated servers, Graham should be paying about $2-3,000 a month for server costs, but that means he would be losing money from his own pocket. Million Dollar Wiki received a least $80,000 after taxes and selling the blog, but that money has been spent by Graham to pay off his schooling debt and to start Entrecard. This is where Venture Capital Investors (VCI) comes into play.

When Graham thought about the idea of opening Entrecard, he had to spend some money on getting publicists or a word out to the investors. As soon as a VCI picks up Entrecard’s plot and goal, the investor would decide whether to invest or not to. We’re not talking about a few hundred dollars, but we’re talking about thousands. These type of funds are only the bare minimal of opening a business like Entrecard. So to sum things up, a Venture Capital Investor basically throws in money for a opening project because that certain investor(s) believes in the future success outcome.

Know Who To Give The $$$ To

blog investNot all projects are going to find Venture Capital Investors because not all are going to come out being successful. These type of investors are mostly experienced and they know whether spending a couple grand on a project as a return on investment or not. Look at Entrecard…the reason Graham received investors was because his idea was unique when he first started out. He was the first one to think of such a system, so he deserves more money to continue forth the project.

Lets ask something shall we? If you have money and you’re now deciding to invest into projects, would you want to invest into Spottt or any similar 125×125 banner exchange type of programs? You probably would not because the value of it would never reach as high as Entrecard. But even if you wanted to invest, not everyone would be able to :)
Not For Everyone

Even if you were to have the money to become a Venture Capital Investor, you won’t have the credibility to invest because you may not have your word for it. So what now? You find something that accepts investments from the average Joe and you take the opportunity to do so.

Investments In Beer Stocks

Internet Venture Capital Investing is the latest to investing these days. Well, technically it isn’t, but it has just been brought into play better than ever. You guys all know Max and his creation of SiteHoppin’. I’m sure you do because I mention him quite often here on Bloggin-Ads. Some of you may just know him by SiteHoppin, but I know him as a man with huge ideas. You may say that he’s a copy-cater since he created FiveDollarWiki, OneBuckWiki, QuarterWiki, and EntreWiki after the big creation that you all know as, Entrecard. What I comment on that is he doesn’t copy someone else’s idea, but he makes it better. Better is what people want and that is what is provided. Ok, enough kissing ass to my good buddy :)
Beer Stocks

At first, these “BEER STOCKS” was called IUVC (Internet User Venture Capital), but Max decided things should be easier, so Beer Stocks was the final name. With a phrase like that, it is attracting tons of viewers and the fuss is just beginning :).

Investing in Beer Stocks is your chance to own a share of a ever growing website known as SiteHoppin’. You will own a share of the total traffic that SiteHoppin’ receives with a full customizable page that displays feeds from YouTube, Flickr, Del.icio.us, Yahoo News, and Google. If you ever wanted to be a part of a major corporation, this is your chance. By owning a share of SiteHoppin’, it means you own a part of the website. You will gain a lot of SEO value for doing absolutely nothing.

So what is the pricing? The current pricing of a Beer Stock word/phrase is $10 for each vowel (a,e,i,o,u) in the word/phrase and $1 for every other letter. This doesn’t include numbers, so purchasing numbers would be a great investment. Someone already purchased the numbers 1 through 10, so there are smart investors out there.

If you don’t want your Beer Stock anymore, you can go ahead and sell the word/phrase for any amount you want at the place known as the Beer Stock Market. New investors are dying to own certain key words, so you’re making money from this.

Max just recently launched the Beer Stocks’ affiliate system and investors are able to sell stocks for commission. Every Beer Stock you sell through your referral link, your referrer will receive a 25% discount and you will receive 25% of the profit.

A business wouldn’t be a business without a donation to charity, so Max has decided that at the end of the year, 5% of all the profits would be donated to a charity voted by choice. What a great guy!

Automated Visitors

Just a couple paragraphs ago, I mentioned that your customizable page will have automated RSS feeds from big companies. What that does is it gives you traffic. I’m sure you want traffic and that is why owning a share of SiteHoppin’ is different from any other Venture Capital out there. As Max said to me in chat, “Beer Stocks gives 33% of all traffic back to its investors and StumbleUpon gives back 0%.”

If SiteHoppin’ receives 100,000 unique visitors per day and 100 Beer Stocks are purchased, each Beer Share would receive 333 unique visitors per day ( 100,000 divide 3 and divide by 100 ). This type of system is the first of its kind and already the has been a few thousand dollars in beer stocks sold.

I even own 2 Beer Stocks myself :) Blogs and Blog-reviews. Similar to any stock market shares out there, purchasing early is the key because you would get first choice in pricing and the names. Buy Beer Stocks! By purchasing through me, you receive a 25% discount! Own a piece of history :P

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13 Comments »

Comment by Deimos Tel`Arin
2008-04-05 18:28:10

LOL

Nice article about stocks, investment, etc.

Then, in the end, it is a beer stock affiliate thingie. :p

Remind me to buy some beer stocks off your affiliate link later since you amused me with your article about investment stocks etc. :D
By the way, you should embedded your beer stock pages with your blog’s pages to start receiving the traffic. ;)

 
Comment by Biztone
2008-04-05 19:08:29

“The biggest type of investments is through the Stock Market…” It is big. But I disagree. The Futures/ Commodities market is much bigger. It deals with international markets and staple type of goods. Very similar to stocks, as speculators can make money.

Also, little guys can kind of get their shot at venture capital. It’s called social lending. But you need to know what your risks are of course.

Anyway, I enjoy your blog!
-Biztone.

 
Comment by Mr. Nice Guy
2008-04-05 22:24:35

The average Joe is really having a hard time in Venture Capital. I think this is only good for businessmen bloggers who think venturing online is also a big business with risk if you are not so careful about it.

 
Comment by Gary
2008-04-06 04:28:48

The amount of money Entrecard needs isn’t VC money so much as angel money…which is what they got. Most VC’s don’t want to bother with small deals, especially the big firms out in Silicon Valley.

Unfortunately for them, the requirements for starting a business have dropped and most companies don’t need, or want, $5m and the loss of control and dilution that comes with it.

VC money is a double edged sword. If you don’t really need it, you are better off avoiding it.

 
Comment by joshuaun
2008-04-06 17:09:18

logo sitehoppin let me think about the “buy me a beer”…………hahahaha

 
2008-04-06 22:59:35

[...] Top Articles Recent Posts Recent Comments Overview Deimos wants folks to buy Beer Stocks from him and he is willing to offer various freebies in order to reward them for their cold moolah spent on beer stocks via Deimos’s Beer Stocks Affiliate link. What kind of freebies? EntreCredits, Back Links, Diggs and Stumbles. Interested? Make Deimos happy. Buy Beer Stocks, buy from Deimos. Just what the poke are Beer Stocks? Mike Huang has an excellent detailed article about that, check it out at: http://bloggin-ads.com/venture-capital-investing-for-the-average-joe [...]

 
Comment by deejay
2008-04-07 18:34:29

i added your site in my links! very informative site.

 
Comment by Shanker Bakshi
2008-04-22 22:07:04

Its seems you are very much impressed with Graham and his game of Entrecard Mike. Its the most difficult part of being an entrepreneur to arrange Venture Capitall invest for your dream projects, Hope both Graham and Max will never have that problem.

 
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