My Good Idea: Subscription to riches

Concept: Subscription plan funds startup and converts to ownership 

Small ventures (start up companies, musicians, film directors, etc.) would to sell an ownership “subscription.” On a monthly basis, subscribers are debited an established amount (as little as $20) which goes to the venture to use for monthly cash-flow.  As few as 500 subscribers paying $20 a month would generate $10,000 in cash flow. If and when the company is acquired or goes public, the subscriber/owners would get a portion of the proceeds or stock apportioned based on the amount of money they’ve put in.

The challenge, of course, is for the venture owner (business person, musician, director) to market themselves to secure a suitable number of subscribers.  This is the business idea: establish a middleman or brokerage-type company that would make the subscription process work. A broker would:

  • Manage the subscription process
  • Handle the back office operations (billing, collections, payouts, legal issues, insurance, etc.)
  • Market concept to the general public
  • Maintain credibility and security demanded by people who are giving you their money

There are a host of things that could prevent this working, like legal issues. But assuming those could be overcome, the service could help a lot of people trying to get a venture off the ground – anything from Joe’s donughts (Joe want’s to franchise), to the next Facebook. 

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2 Responses

  1. This is a great concept. It’s like taking this Microcredit concept from this site http://www.globalgiving.com/pr/1700/proj1641a.html?RF=sedge and moving it into an artist model. I love it. I think it’s a great good idea!

  2. To have 500+ investors, you would have to have a publicly traded company and file the appropriate forms and pay the astronomical legal and accounting costs associated with being public, which would use all of the “subscription” money

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