Preservation & Longevity

[ptcxyz]

From my blog.
I have received a lot of emails about conserving and preserving the longevity of your site from my last email newsletter.

This should be rather quick so let’s go!
Right out of the gate I will bring up the fact that every business runs off capital.

YOU CANNOT HAVE A STARTUP WITH ZERO FUNDS BEHIND IT.
No one will be willing to invest in the beginning. You can thank all the other sites that have come and gone because of irresponsible admins.

With that, be smart. The thrill of a startup can be intoxicating.
But if you don’t have enough cash behind the project then you should push back the launch date until you can accommodate payouts, refunds, chargebacks, and other customer complaints such as fees. This community is global so it might cost $0.50 to send a payment to India and only $0.10 for a payment to Europe.
Make it cushy. Have like $1000 as a buffer for loss. Plus three months worth of maintenance fees set aside. Or, pay for everything up front as in hosting and licensing for six months.

So you have capital, great! Let’s launch to the moon. Now you need that longevity.

Eventually users will pay. They will pay for upgrades, referrals, anything really. The more users the more profit if you’ve done the math.
Set aside a percentage of every incoming transaction. Again, something cushy, let’s say 20%.

Simple math. If someone invest $100 then you set aside $20 of that.
You might think that is ridiculous or wonder how it’s even possible.

If you curtail everything on your site then everyone will prosper. If some one deposits $100 you could probably run a newer startup on that for a few days. By that time, someone else will have invested. What they do with that investment should be irrelevant to you. If you get concerned or scared they might gather to many rental referrals and rack up a large balance then you probably should have thought about your pay per referral click rate.
Let’s say a month down the road you received four more investments. $100 a piece. Between the five $100 deposits you now have $100 in your insurance fund. This goes on….you now make a profit plus insurance.
If something serious happens like a Paypal limitation or something of the like. Now you have the ability to pay members for “damages” or “inconvenience.” A real tactic to save your integrity as a person. Which should honestly be the most important thing.