What do you consider a "large investment"

by LMC
33 replies
Hello Warriors,

I was a bit taken back today, I answered a PM from another warrior about buying ad space, and showed him a potential spot in his niche, it would cost him $35 for the month and bring him approximately 2500 unique views.

He told me this was to big of an investment.

At 1% , you can get maybe 25 sales, your probably guaranteed for at least 3-5. At an average price your profit should be $60+

In any case, my question is, what do you consider a large investment?

#large investment
  • Profile picture of the author Steven Wagenheim
    Large investment is relative.

    To people living from paycheck to paycheck (if that) $100 could be a large
    investment.

    For others, $10,000 is chump change.

    Depends on your financial situation.

    For me personally (because I'm cheap) a large investment would be anything
    over $2,500. But for practical purposes, given my monthly income, a large
    investment is probably $10,000.

    But like I said, I'm cheap.
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    • Profile picture of the author James Blair
      Originally Posted by Steven Wagenheim View Post

      Large investment is relative.

      To people living from paycheck to paycheck (if that) $100 could be a large
      investment.

      For others, $10,000 is chump change.

      Depends on your financial situation.

      For me personally (because I'm cheap) a large investment would be anything
      over $2,500. But for practical purposes, given my monthly income, a large
      investment is probably $10,000.

      But like I said, I'm cheap.
      I agree with Steven W., an opinion of what a large investment is probably varies greatly between people because of personal opinions and also because of each person's income, I'd say that a large investment for me is in the neighborhood of $1k, but I'm also not scared to pass that threshold if I feel it's a valuable investment.

      For a recent example, I just purchased Frank's List Control, which cost double what I consider to be a large investment, but I know Frank will deliver the goods and that my business will profit several times better as a result, so anyway that's my personal take.
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  • Profile picture of the author thunderbird
    A large investment is about the length of a piece of string.
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  • Profile picture of the author Raygun
    For many people they are not used to taking any risks at all. They choose to take the conservative route with everything they do. I on the other hand am the exact opposite, I spent and lost a lot of money. I have tried everything at least once and got my a@# handed to me a few times. But I also think that helped me realize what I can and cannot do.

    I tend to take the approach of being cautiously aggressive (is that a term?) with everything I do online. If I think it will work, I go for it full blast. My theory on money is, if I lose it, I can always get more.

    This guy also could just be thinking that he can find a better deal somewhere else and want to try that? Who knows what people are thinking, sometimes instead of saying no they make up something to be nice.
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  • Profile picture of the author WhoDaresWins
    @Thunderbird - great response - mind if I plagiarize that?
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    • Profile picture of the author thunderbird
      Originally Posted by WhoDaresWins View Post

      @Thunderbird - great response - mind if I plagiarize that?
      You're totally free to do so
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  • Profile picture of the author mmurtha
    I'd say 4 figures and up, but it would depend on what I am investing in. For instance, I'd pay 5 figures and up for something like marketing consultation, a site that was bringing in 4 figures per month that is placed well, has authority in the SEs, etc ... as well as stock because they will yield income to make up for the investment plus yield a good profit.

    To most people it is defined by where they are financially, so I can understand why that person might think it is too big of an investment. When you're looking at a fixed income for instance, and 9/10ths of it goes out to bills and primary care, $35 matters - to some anyway. I think that's because they only see the immediate danger or their immediate circumstances ... not where they can be or what they can have. I say the lack vision to look ahead or see what is ahead is the real problem.

    And then you have people that can't take a risk if their life depended on it.
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  • Profile picture of the author Lou Diamond
    Hello,
    there are many times that I have made an investment as an experiment just
    to see what will happen.
    If I learned something from it I consider it money well spent.
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  • Profile picture of the author ChrisByrns
    • look at your bank account
    • add your savings-account to that
    • subtract 3 monthly salaries from the number you get

    the number you come up with is what i'd call a "large investment"


    ..just my 2 cents
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  • Profile picture of the author mikemac1
    Maybe I'm not getting the numbers but 3 sales @ $60/profit per comes to $180 and you're lookin' for $35/month, why aren't you looking to place your own product in the spot.

    1% potential @ $60 comes to $1500/month and that is available $35/month?
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    • Profile picture of the author LMC
      Originally Posted by michael-mac View Post

      Maybe I'm not getting the numbers but 3 sales @ $60/profit per comes to $180 and you're lookin' for $35/month, why aren't you looking to place your own product in the spot.

      1% potential @ $60 comes to $1500/month and that is available $35/month?
      I was saying that the 3-5 sales would produce somewhere around $60 profit. Net revenue being approx: $100 - $35 (investment).

      And to answer your second question, I no longer find smaller buys of $35 of interest.

      I was just giving some advice to this warrior.
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  • Profile picture of the author Brian Tayler
    I think risk potential matters more than dollar amount when it comes to what gets me nervous as a large investment.
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  • Profile picture of the author mikemac1
    @LMC - I appreciate you responding
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  • Profile picture of the author Jay F
    Another way to look at the relative term of "large investment" is the risk/return factor.

    For me, the greater the risk, the lower "large investment" I would be willing to make. However, there comes a point in there where risk/return just isn't worth it. For example, very low risk with high potential for 1-2% return is just not a reasonable way to spend your money.
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  • Profile picture of the author rondo
    Sounds like a good deal to me. What's the niche?

    Andrew
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  • Profile picture of the author Kezz
    That's a tiny investment in my view for that amount of traffic. If that's too large I can't imagine what a small investment is and how it could possibly get results.

    I hate to be abrupt, but if you can't make a profit from 2500 uniques then you need to reassess your conversion techniques before you even consider an ad buy.

    That's just my view though.
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  • Profile picture of the author CurtisN
    Everyone's talking money, but I don't think anyone mentioned time
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    • Profile picture of the author thunderbird
      Originally Posted by CurtisN View Post

      Everyone's talking money, but I don't think anyone mentioned time
      Time is the big thing. Way more precious than money.
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  • Profile picture of the author Nicky Papers
    For me a large investment is anything over 10k.
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  • Profile picture of the author Melodican
    IMO - house, car, business, stocks, bonds, websites (for flipping)...

    If you've done your sums (Warren Buffett stylee) ALL investments should be in fairly safe hands with the potential of maximum growth.

    "Put all of your eggs in one basket, but watch that basket VERY carefully" - A Carnegie
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  • Profile picture of the author SEOPoints
    Originally Posted by LMC View Post

    In any case, my question is, what do you consider a large investment?
    Any amount of money that represents more than 20% of the trailing 90 day average estimated net income that my business has generated.
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  • Profile picture of the author NikkiG
    My house or my nice new car were large investments (well expenses because I don't expect to see a return on them).

    Anything that costs less than a meal for 8 at a decent restaurant is a small investment.
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  • Profile picture of the author All Night Cafe
    Is this advertising space you have sold yet.

    I would like to talk to you about it.

    PM me and lets get the details.

    A large investment is certainly more than $35.00
    to me. I have spent as much as $5000.00 and
    made money.

    I think the person has to decide for themselves.

    For what you offer, I'm in.
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  • Profile picture of the author Istvan Horvath
    Originally Posted by LMC View Post

    In any case, my question is, what do you consider a large investment?
    Whatever I cannot afford... If I can afford it - then it's not too large.

    (BTW, I don't consider buying consumer goods, like house, car, traveling... "investment". Investment means I have a reasonable expectation for a return.)
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  • Profile picture of the author poker princess
    My maximum investment a month was 10k, but I guess it was worth it.

    The least investment from me was $2500, which I think was good too.
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  • Profile picture of the author AdzMedia
    Been mentioned already but varies greatly upon the Individual`s own budget and situation.

    $10k for one person or a company is an enormous amount of money, to others it`s peanuts. In our own business, we have worked with clients who have thousands to spend, others want results for less than $40.

    Personally speaking, a large investment for us would be classified as something of the value of a car, a property etc. I guess anything that runs into the $1000`s.
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  • Profile picture of the author LMC
    Thanks to your insight, The ad spot is no longer available, but you can contact me and I can see if I can find another producing similar results
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  • Profile picture of the author veylo
    Currently a large investment for us would be around the $100,000 mark, we are working on this to triple this investment budget.

    At the minute, we have most of our budget tied up but could release fund's or find suitable investors that can bring up to $250,000.

    Clearly it depends on the person/company's situation.

    To some a $100 will mean there saving's, $25,000 for others could literally be pocket money.

    I don't think there is a set amount on a huge investment, a certain investment can mean large to people in different ways.
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  • Profile picture of the author R Hagel
    The definition of a large investment not only depends on a person's finances and risk tolerance, but also on how much they WANT something.

    Let me give you a non-investment example...

    Take your typical struggling college student.

    Tell him that the college messed up his invoice, and that he owes an extra $300 for the semester. He'll freak and say he doesn't have the money and there's just no way he can afford it. Maybe he'll end up going to his parents to ask them to cover the amount.

    Now take this same college student.

    His buddies tell him they've found a great way to get them all to Cancun for spring break -- and the deal is just $300 per person.

    Suddenly, finding $300 isn't going to be such a big hassle for this person. That's because he WANTS to go to Cancun (but he doesn't want to pay some stupid bill).

    So, again, "large investment" also depends on how much the person wants the end result.

    Cheers,
    Becky
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    • Profile picture of the author Kelly Verge
      Originally Posted by R Hagel View Post

      The definition of a large investment not only depends on a person's finances and risk tolerance, but also on how much they WANT something.

      Let me give you a non-investment example...

      Take your typical struggling college student.

      Tell him that the college messed up his invoice, and that he owes an extra $300 for the semester. He'll freak and say he doesn't have the money and there's just no way he can afford it. Maybe he'll end up going to his parents to ask them to cover the amount.

      Now take this same college student.

      His buddies tell him they've found a great way to get them all to Cancun for spring break -- and the deal is just $300 per person.

      Suddenly, finding $300 isn't going to be such a big hassle for this person. That's because he WANTS to go to Cancun (but he doesn't want to pay some stupid bill).

      So, again, "large investment" also depends on how much the person wants the end result.

      Cheers,
      Becky


      The sister of a friend was bemoaning the fact that her 15-year-old AC unit will probably have to be replaced in the next few years and that she has no idea how she can afford it or even if she's going to be able to (single widow mom living off of her husband's life insurance). Her oven died a couple of years ago and she hasn't repaired or replaced it for the same reasons - "can't afford it."

      For Spring break she's taking her kids to Disney World. This will be their second trip to Orlando this year. Even assuming they bought annual passes in January, between the 9-hour drive, hotel, food, and misc stuff, this trip will easily be $500+. No telling how much the first one was.

      It's all about priorities and perspective.
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  • Profile picture of the author badboy_Nick
    Originally Posted by LMC View Post


    In any case, my question is, what do you consider a large investment?

    Buying property is what I would consider a large, long-term investment.

    Nick
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    • Profile picture of the author veylo
      Originally Posted by badboy_Nick View Post

      Buying property is what I would consider a large, long-term investment.

      Nick

      Nick,

      That is our aim in the next year or so, investing in offline property for longer term investment.

      Making money through the internet is allowing us to invest in offline property, which is more secure and viable for the long term future.
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