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Trade expansion advice.
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Archimedes Akiga
Tribal Liberation Force
Minmatar Republic
#1 - 2015-03-05 19:25:50 UTC  |  Edited by: Archimedes Akiga
Hello,

I have recently started trading in Jita 4-4 with approximately 150m in seed capital which I made running missions.

I am at university (RL) so I have the free time to log on every 90mins for a few minutes to wage the 0.01 ISK war on my fellow traders. So far, things are going well. I have averaged a healthy daily return which when compounded makes for good reading.

I eventually plan on looking for 3rd party investment (Once I have reached 2billion in ISK). I have some questions:

- Who is a credible auditor that the bond buying community trusts?

- I was thinking of offering a variable monthly return. For example the first 8% return is given to the investor but anything over 8% is split 50/50 between me and the investor (which would be audited by said auditor). Does this sound appealing to the bond buying community or would they prefer a set return percentage?

E.g.

- 100million invested on day 0.

- Day 30 this has appreciated to 149million

- 8% * 100m + (49-8)*(0.5) + 100m = 128.5 million.

This pay structure exposes the investor to greater risk but also to greater reward.

What do you think guys?
Koniforous
Tauren Transit
#2 - 2015-03-06 04:55:01 UTC
Archimedes Akiga wrote:
Hello,

I have recently started trading in Jita 4-4 with approximately 150m in seed capital which I made running missions.

I am at university (RL) so I have the free time to log on every 90mins for a few minutes to wage the 0.01 ISK war on my fellow traders. So far, things are going well. I have averaged a healthy daily return which when compounded makes for good reading.

I eventually plan on looking for 3rd party investment (Once I have reached 2billion in ISK). I have some questions:

- Who is a credible auditor that the bond buying community trusts?

- I was thinking of offering a variable monthly return. For example the first 8% return is given to the investor but anything over 8% is split 50/50 between me and the investor (which would be audited by said auditor). Does this sound appealing to the bond buying community or would they prefer a set return percentage?

E.g.

- 100million invested on day 0.

- Day 30 this has appreciated to 149million

- 8% * 100m + (49-8)*(0.5) + 100m = 128.5 million.

This pay structure exposes the investor to greater risk but also to greater reward.

What do you think guys?

You would end up paying auditor fees as well. Which kind of sounds like a board of trustees managing a trust fund/bank, and we all know how well that worked out. I say, keep it simple: flat rate of return for ongoing bonds, and you decide on your own profit/loss reports, and whether or not to issue fluctuating returns over that flat rate. That strategy worked well for me, and I did try to have my self audited which ended up being A LOT more difficult that I thought it would.

TAUTX: Private Bank & Lending

TAUTX: Collateral Liquidation / Discount Items
Cista2
EVE Museum
#3 - 2015-03-06 07:44:19 UTC  |  Edited by: Cista2
Archimedes Akiga wrote:

- I was thinking of offering a variable monthly return.
.......

This pay structure exposes the investor to greater risk but also to greater reward.


The community are traditionalists that do not appreciate projects that the investee thinks are a more interesting way of asking for money (believe me I know).

Regarding "risk", the risk for an investor is NOT that the return of investment might only be 8%. This you have to understand when you try and launch a proposal as a newcomer. People will gladly invest in bonds that are only 2%, if they are secured. Yours will not be secured, therein lies the risk.

The audit will help you get a loan even at 10% flat, or you can simply offer some api information out publicly.

My channel: "Signatures" -
Archimedes Akiga
Tribal Liberation Force
Minmatar Republic
#4 - 2015-03-06 10:19:52 UTC
Thank you both for taking the time to reply.

From what you both say I think it will be best to stick to a familiar payment structure on my initial bond offering. Perhaps when I have a better following on the bond buying market I can look to introduce my imaginative payment structures.


Still looking for a potential auditor if anyone has any input?
Koniforous
Tauren Transit
#5 - 2015-03-06 11:39:42 UTC
Archimedes Akiga wrote:
Thank you both for taking the time to reply.

From what you both say I think it will be best to stick to a familiar payment structure on my initial bond offering. Perhaps when I have a better following on the bond buying market I can look to introduce my imaginative payment structures.


Still looking for a potential auditor if anyone has any input?

The 3 that I contacted declined involvement. I didn't talk to Elizabeth Norn, or RAW23, though. They might do it.

TAUTX: Private Bank & Lending

TAUTX: Collateral Liquidation / Discount Items