The Internet Marketing Funds Broker

• Abstract

A platform that allows investors to invest in Internet websites, and enjoy their success, and enables web entrepreneurs to raise money for their online marketing campaigns.

• Background

Everyone can launch a website. With more effort, that website can be professional and with a satisfactory business model. However, all web-based business models, whether for services, commerce or even content, are based on traffic.
The entrepreneurs who have launched the website face 3 options:

1. Do nothing about the traffic and hope for the best. This is how most web ventures fail.
2. Use "Guerilla-Marketing" - by promoting their website in blogs, talkbacks, forums, chat rooms, etc.. This is low-cost marketing, which can be effective in some cases, requires either a lot of effort or SOME initial costs.
3. "Buy" traffic: use the standard tools for online marketing.

• Details

"The Internet Marketing Funds Broker" (TIMFUB henceforth) is a website, acting as a fundraiser platform, allowing entrepreneurs to raise money for their online marketing campaigns on one hand, and allowing investors to invest in such websites and enjoy their success on the other hand.
Entrepreneurs: after a website is launched, the entrepreneurs can publish their business model and financial plans on TIMFUB. They will also have to detail their funding needs.
Investors: investors can browse the profiles published on TIMFUB, select a profile to add to their portfolio, by investing in it according to the published funding needs.

The Investment:

In order to invest, the investor will transfer money (using credit card or any other available online transaction tools) to TIMFUB, which is in charge of the management of money and its transactions. The money will be kept in TIMFUB's bank for the entrepreneurs to use.

Using The Invested Funds:

The (happy) entrepreneurs can now use the money which currently resides in TIMFUB's bank, for their online marketing. They will have to adhere to their own plans, published on TIMFUB's website. TIMFUB allows money transfer between its own bank and most of the online marketing services available.

Tracking Success:

All possible income will be redirected to a designated TIMFUB account, which will track the website's cash flow. According to the contract, the income will be split into different accounts - the entrepreneur's own account, and each investor's account, according to the revenue sharing decided in the contract.

Executing Profit (Loss):

On pre-determined dates, investors will be able to execute transactions with their account: withdraw their investments or collect their share of success.

• Business Model

TIMFUB's business model is based on transaction commission (finder's fees) and management fees.

I originally talked about this venture idea in Eurekamp's cortexstorming.

Welcome

Since I've had too many startup ideas that were eventually to be a success (usually by someone else), I have decided to publish my own ideas here.

In this blog I will throw (post) ideas and thoughts in the air.

Please comment and add your own ideas.Also, feel free to execute anything posted here. I'll be happy to advise :-)

Boaz.