Welcome Guest - Login / Register FAQ Categories - Business Model
Enter a keyword that can be found in either the question or the answer that you are looking for:
Sustainability - What is required to repay all investors?
Short answer: Each product we add to the portfolio, using your investments, needs to return 3.6x it's construction costs.
Detailed answer: There are two parts to this question:
i) Calculating the debt created, for every $1.00 invested.
ii) Showing what generates those subsequent revenues, and how much revenue is required!
i. Debt Per Dollar Invested
Both our 186% and 250% investment plans create the same amount of debt per dollar invested. So it doesn't matter which plan you invest into. The requirement of the portfolio is identical. I will use the Fast Track 250 plan as an example:
Each dollar invested into the Fast Track 250 is allocated as follows:
- 65.00% / $0.65 is used to finance development of our portfolio
- 1.00% / $0.01 pays your upline their referral commission
- 19.00% / $0.19 is divided between our royalty position holders, paying them their weekly cash dividend.
- 15.00% / $0.15 is instantly returned to our investors, as a direct contribution that days results.
So, you invest $1.00 into the Fast Track 250, and you want $2.50 back.
As shown above, $0.15 is returned to you. Paying you your own money back basically. So that reduces the debt from $2.50 to $2.35.
And to make that $2.35, we have $0.65 worth of portfolio development funding.
$2.35 / $0.65 = 3.615
Thereby, whatever products, businesses or services we invest into / build, and add to our portfolio, they need to return 3.615x their construction costs in revenues. In order to fully repay all the investors that contributed towards their development costs.
ii. Generating Revenues
Using your investments, we build / invest into the development of various businesses, games, products and services that we situate (and are owned by) our communal portfolio. 100% of the revenues generated from this entire portfolio are what repay investors.
The image below is an example of our portfolio, where you can see the "Cost to Build", "Revenues" and also the green status bar, that shows you each products' progress towards generating the 3.6x return on costs.
If you click on the "Cost To Build" value, you will see a breakdown of all the costs that were applied to the construction of this product. These include direct construction costs and general overheads of My Traffic Value (hosting etc) since the addition of the previous portfolio product.
Using Let it Ride as an example, that cost $6000 to build. And in order to repay all the investors that contributed towards it's construction, it needs to generate $21,690.00 in total revenues. Once that happens, and time is no issue thanks to our numerous time saving devices (and the entire portfolio paying people back, not just one product), the debt created from all the investors that funded Let It Ride specifically, will have been cleared.
Thereafter, any subsequent revenues from Let It Ride, will be a bonus to all future investors. Reducing the burden their individual products need to generate in order to repay them. Hopefully speeding up and scaling the overall system to unlimited proportions.
Thereby, the system should be absolutely sustainable. And as more products exceed their 3.6x return on cost requirement, the system should become ever safer / faster!
* And remember, all the products with $0.00 development cost, were financed by our royalty position holders, and are a complete bonus to the system. As they have no debt to repay; all their earnings just help speed everyone elses return up.
What happens if a payment processor collapses?
E-Currencies and payment processors are one of the risks associated with doing business online. We mitigate this risk primarily by keeping as smaller reserve as possible in each account. And diversifying our cash assets between as many accounts / payment methods as possible.
However, if a payment processor collapses, we will do as follows:
1) Write off the actual losses as a development cost, and apply it to the next product added to the portfolio.
2) We will then look to see how much value there is in maturing investments, royalty positions and account balances for that failed payment processor / deposit method.
3) We will then provide a transfer form, where users can transfer their balance from the failed deposit method, to another for cashout. And charge a fee for that service. The fee will be designed to return 3.615x the actual loss written off on the portfolio.
Payment Processor 1 Fails. With $100,000 worth of value in user accounts.
Our actual losses from Payment Processor disappearing would likely be something in the region of $4000. (4% of the total value we're holding under that processor)
4% * 3.615 = A transfer fee of 14-15%
This thereby means users take responsibility for their deposit method of choice. And it makes a relatively sure fire "product" or "investment" out of each failed payment processor. As the value is already in the user accounts, and it must be cashed out. Thereby a safe investment for the portfolio to achieve what's required of it.
Value swapping is an option of last resort. Last used on January 28th, 2013
But it provides a great way to revitalize the system in the event of slow revenues coupled with poor growth prospects and heavy debt.
HOW IT WORKS
Royalty Position holders will invest a percentage of their Royalty Position holding, to give away to active investors in place of the debt owed to them (the amount of money required to repay their active investments).
Those Royalty Positions are then issued to investors at a nominated equivilent value. This will be quite a bit higher than the current marketplace rates. eg. The marketplace maybe peaking at $0.40, and the value swap occured at a rate of 60cents a Royalty Position (an 50% premium).
So if an investor had invested $100 into the 250% plan, and had received no prior payments. They would be inline to receive $250 / $0.60 = 416 Royalty Positions.
1) Our entire portfolio is now earning, with no active investors to repay.
2) Our fast track queue is completely emptied. There are no active investors awaiting repayment.
This creates a huge void in the system. Making it incredibly attractive for new investors to join. As they have a huge pre-built portfolio working to pay them back, in addition to what their new investments fund. And there is no debt in front of them, so the first person to invest; is going to be the first person to be fast tracked!
And now the system is incredibly attractive again, new investment floods in. Increasing development funding, and allows us to develop the portfolio out to the next level. Making it even stronger than before. Fixing any issues / areas of weakness that may have resulted in the revenues slowing in the first place.
This then creates system growth, a bigger portfolio, more turnover for Royalty Position holders to earn commission from. And all in all, a much more valuable company!
The subsequent increase in Royalty Position price, should then climb up to at least the premium swap value. At which point the original investors, can sell their Royalty Positions to earn the exact same amount of money they would have otherwise received via the fast track queue.
And the substantial increase in the overall Royalty Position price, is more than sufficient to compensate the Royalty Position holders for the Royalty Positions they invested / gave away. Resulting in a net overall gain for their holdings a whole.
The idea here being, that revitalizing the system and creating renewed mega growth, is a faster way for all parties to earn. Rather than waiting years and years for the portfolio to slowly repay the accumulated debt via the fast track queue.
So everybody comes out a winner.
And an incredible new investment opportunity arises in the process.