Hello all! As some of you may know, before disappearing from ECC for a while, I ran a company known as 6 Netherstar Inc. (original thread: https://www.ecocitycraft.com/forum/threads/6-netherstar-inc.93290/) Now, I would like to get things back up and running, but with an updated business model. The general concept is still that we will sell shares in the company, and then shareholders will receive dividends based on company profits. However this time, rather than making money with towns and a spawn shop, we will be investing in star tools that staff will use to earn money. Again, staff will keep 1/3 of their personal earnings, 1/3 will go towards buying more tools (or whatever else we decide to use to make money), and 1/3 is distributed to shareholders. There will be a cap on total shares to be had (Inital cap probably 150) and shares may be traded between players for any reason/price, just notify us of the transfer, or sold back to 6 Netherstar Inc. for 75% of their current value. When we see a need to raise more capital, we will increase the cap of shares as well as increasing the price/value of shares. This way, early investors will be even more rewarded should they ever want to sell their shares. The current projected starting cost of a share would be 5k. Selling 150 shares at 5k each would enable us to purchase a star rod to get things going. Post any questions or suggestions in this thread, as well as letting me know if you are interested in investing. Those interested in becoming staff of 6 Netherstar Inc. should contact me via forum PM or in game.
Wait, so if I read this properly, whatever money is made using that star tool must be evaluated and 66.66% given to the company essentially. That can easily be forged. Correct me if I read wrong
Star tools have a pretty standard rate per hour, staff would essentially be renting the tool from the company for 2/3 of that rate. We may even look into getting some max vanilla tools and renting them out to the general public.
So at the moment, you have no way of making money? Once you get a star rod, what do you plan to do with it? How often will you update shareholders on your costs and profits? How do you justify 5k for one of 150 shares? What do you think the return for US will be and when?
So we're essentially buying a part of a star tool, for which a share of the earnings from rentals will be returned to us?
Lets say you get your star rod, and normal rental price at the time is 5k. You say you'll be renting at 2/3 of that, so 3.3k or smth. 1/3 of which goes to the company and 1/3 goes to the employees, leaving 1.1k left for shareholders. If I own one share, which I bought for 5k, of 150 shares, I will get 1/150 of the remaining 1.1k, which is somewhere around 7 ECD per hour rental of the star rod? Please correct me if I'm wrong lol
Your math seems legit. $7 per hour for not doing anything at all seems like a great return It will only take about 700 hours of rental time to return your investment - and then it is all profit time Want a better return?, buy more shares
@AdmiralD really hit the central idea of the system. It's not a ton of money, but again you are doing absolutely nothing and getting part of the profit back. Over time, as the number of tools being used goes up, so will that rate. Also the system is 2/3 of what the tool makes goes to company, which is split between reinvesting and shareholders. 2/3 of 10k/hour for a star tool (which is the price I've heard a star rod earns, haven't yet tested) is 6.6k/hour, half of which goes to shareholders (3.3k) for $21 per hour per tool, bringing us to 238 tool-hours of work to break even on a share, at which point it's all profit. Even if the tool only gets used two hours per day (which is pretty low especially if we get 2-3 staffers) 1 share would make $294/week, which takes 17 weeks to break even. That sounds like a while, but my current hope is for the tools to get used at least 4 hours a day (240k/week, , bringing in over $500/week on a single share, which puts it under 10 weeks to break even. Also, to answer your other question, profit updates will be weekly and paid out on request.
Also worth noting that 4 hours per day of staff star rod usage means 120k/week gets reinvested into buying another tool (perhaps an msword? That will be decided by staff and shareholders when we get there). If we do pick star rod again, it takes around 6.25 weeks of that to get another star rod, (750k) at which point everything doubles.
However: "A need to raise more capital" is an arbitrary requirement. Theoretically you'd be able to sell 150 shares at 5k each, then immediately increase the amount of available shares to 15000. Suddenly everyone would only get 1% of their original expected income, which means that 99% of the total shareholder payout wouldn't ever leave the company. Personally, I see too many issues with a stock/share business system on ECC.
No offense but 66.66% going toward you? I'd like to pay for my own equity, you don't need 1/3 for "tools" (Bare in mind you never specified what you meant by "Tools") but if you dont need to buy tools it's going to be a 66.66% free for the company, also splitting 33% between shareholders is a bad idea, if I pay 250k for 30% I want 30% of what you make, Im paying you for the amount I want, taking money and splitting it between a bunch of shareholders will end up with most of them getting small worthless amounts, also I dont like the idea of holding the star rod in the air and waiting for the light to shine on it, are you letting your entire company rely on a star rod? and I don't want to wait 17 weeks to receive a tiny amount that won't help me in the slightest.
What happens if a tool breaks or gets destroyed? What happens if someone has it in their inventory and it gets wiped. What if you stop playing again? What if you’re @obblesomething (can’t remember that dudes name ) More likely you just don’t get that many rentals :/ it’s not a bad plan, but I think you’d need a star tool in hand, probably a melon sword, with an agreed max number of shares per tool in contract. 150 would be fine. Dividend paid after each rental, I think 1/3 is fair as you take the risk and need the extra money to buy another mswotd Incase someone breaks it. Star rods need repaired a lot. If I bought into the whole company that’d be better, more money, but as 314 pointed out would have to disallow more shares. Good luck.
So, you're essentially issuing stocks on a server with NO SORT OF REGULATION WHATSOEVER. There's a reason things like the SEC exist in real life. Sorry, I don't trust the business or the model.
