Is this a good investment?

Question

I have made the decision to pay small world labs $10,000 to develop a social networking website for me. I want to know if I am making a good deal here.

Answer 1

ROFLMAO.......

I'll take 10k from you

Answer 2

I would consider an investment to be something that has a projected return, if not historical returns. This sounds more like a business speculation than an investment based on those criteria.

Let me explain: I am currently working on a project where investors will receive a 39% annual rate of return. So $10K would return $13,900 the first year and then compounded each year following that.

A good example of the distinction between speculation and investing is what is done in the real estate market. Some people buy real estate and hold on to it for a number of years realizing a capital gain. Others buy real estate, fix it up, and flip it as quickly as possible.

It is possible to make money either way. The question you have to ask yourself is what type of income will this website bring for you?

Answer 3

I'll give you a few tips to remember when making an investment.

1) Always make sure you know and understand the investment you are willing to spend money on. You don't have to love the investment. You just have to know it well enough.

2) An investment must be profitable when you are purchasing it, otherwise there is no point in buying it.

3) You must determine your exit strategy before you even begin investing.

4) Research, learn by experience.

5) You must clearly pre-determine your goals and mission before you invest, e.g are you investing for capital gains, are you investing for cashflow or are you investing for personal/self developement/growth?

Also, you might want to find out what Small World Labs competitors are charging for similar service. Only by researching will you be able to determine if the deal is good or not. Plus obtain references from some of their previous customers.

Also, get someone knowledge about contracts e.g paralegals or attorneys, mediators to review your contract with them before you sign it. This is because you might want to lessen your risk and have better guarantee that the job will be completed for you and in a timely manner.

Answer 4

$10,000? Isn't that a little steep? Try a place like elance.com, they'll probably do it a lot cheaper.

Make up some flyers and post them around college campuses (the computer programming areas). Some student will probably do it for a good reference and the experience (maybe a little cash).

I don't know all the technical stuff involved in creating a web site like you've mentioned, but I know I've bought houses for less than $10,000. But alas, sometimes you have to pay to play...

Answer 5

What is it that you hope to achieve from your social networking website? What are the chances that you will achieve it? Is that worth $10,000 to you? And did you get bids from at least three companies to see if that's a good price?

Answer 6

If you don't know if the investment is any good, why are you giving them your cash??

do your research first, and on a better forum then here. After all, i might own "small world labs" and say it is bloody brilliant.

Answer 7

I agree with darklydra. You better do research before you invest.