is selling eqity to customers is advisable? coz i see a security, being a equity holder they will stick to us?

Question

we are workin on one project in which i w'd like to give equity to my customers, would it work as a glue to keep them with us????

Answer 1

While it could possibly keep them as your customers, think about the downside too. They may be more demanding of you and your time, expect discounted pricing, expect dividends of your profits, and give you advice on how to run your business that you don't need from them. You may also be running into problems with the government, as selling equity could be considered selling stock in your company.

Answer 2

Offering an equity stake in your venture is a good idea but it will not necessarily keep your customers with you. Equity investment decision depends on several parameters and conditions. Primarily people invest into equities to get capital gains/profits and not to remain loyal to the issuer of the equity.
As I opined, if your business and the business plan has good profitability and scaling up possibilities, people will surely invest in your venture.
Please explore your business plan, your future plans and then approach your clients.
Best of luck.

Answer 3

bad idea