In recent years, various internet services have gained increasing popularity. Along with rising demand, the number of individuals willing to invest in these services has also grown. Such investments are in demand among both private individuals and large corporations looking to acquire stakes in established projects or startups.
But is the situation as rosy as it appears? What are the advantages and disadvantages of this investment approach, and what challenges might one encounter?
To shed light on this issue, we turn to Sergey Tereshkin, the founder of OILResurs, who possesses extensive experience in investment and entrepreneurial activities.
Advantages
The benefits of this investment method can be summarized as follows:
- Profitability. When investing in a startup, profits can reach hundreds or even thousands of percent. This applies not only to various pyramid schemes or so-called "Hyips." A legitimate project offering a quality service can provide substantial returns. The key is to choose the right startup. Investing in existing websites can yield an annual return of 25-40%, which is also a very attractive figure.
- Speed of returns. When investing in an established project, profits can be realized just weeks after the investment is made. In this case, a full return occurs within 6-12 months, unlike investments in real estate, precious metals, etc.
- Amount. It does not take millions to invest in the internet. You can start with minimal amounts, as low as $20 or $50. However, in such cases, one should not expect massive profits.
- Location. Income can be generated from anywhere in the world. There is no need to tie yourself to a specific location or country.
- Anonymity. Tax authorities often cannot track the actual profits earned online. Essentially, individuals can save on tax payments. Earnings can be made in electronic currencies, which are typically inaccessible to tax authorities and other entities.
- No need for business registration. Individuals do not have to establish a legal entity to invest. This allows them to save time and avoid the stress associated with filing reports, interfacing with tax authorities, and dealing with bureaucracy.
- Knowledge. There is no need to acquire specialized knowledge or undergo training to invest online. At the initial stage, reading a few articles with recommendations will suffice, which will only take a few hours. Subsequently, investors can enhance their skills and come up with new, progressive ideas.
The income generated in this scenario depends on the quality of project selection and the amount invested. Some well-known entrepreneurs have built multi-million fortunes through internet ventures.
Disadvantages of Investments
However, like any other investment method, online investments have their drawbacks, including:
- Difficulty in selecting projects. Finding a genuinely promising startup or website is challenging. Typically, such projects are sold due to low profitability. The searching process can take weeks, but the effort may be worth it.
- Fraud. The internet is rife with Hyips that promise substantial profits but often cease payments only a few months after investment, resulting in significant losses for investors.
- Lack of protection. When investing in a financial pyramid, defending one's interests in court can be quite difficult. Most often, investors do not even know who is truly behind the project. Organizers frequently have Hyips registered in the names of third parties who may not be aware of the fraudulent activities being carried out in their names. Additionally, user agreements are typically drafted in a way that leaves individuals with little or no recourse.
When allocating funds, it is essential to weigh the pros and cons. Investing in a pyramid scheme is ill-advised, even if the organizers promise large returns. Sooner or later, the influx of new users willing to invest in the company will dwindle, and with it, payouts will stop.
Helpful Tips
For those considering investing their money in an internet project, the expert offers the following recommendations:
- Do not invest the entire available amount in one project. It’s wiser to diversify investments across several websites, which reduces risk and prevents total loss of funds. Ideally, select projects across different sectors that are not interconnected.
- Invest only with disposable income. Avoid taking out loans or borrowing for investment purposes. It’s advisable to allocate an amount that, if lost, won’t significantly harm the household budget. Losses on borrowed money will need to be repaid from personal assets, potentially endangering possessions like vehicles or property.
- Steer clear of projects that promise unrealistic returns. A reasonable expectation is an annual return of 20-30%. These are realistic figures that most websites can provide. Promises of hundreds of percent returns often come from sources that do not intend to fulfill them. Startups capable of such returns typically do not even dream of them at the initial stages.
- Avoid investing in sectors with which you are entirely unfamiliar. It’s challenging to evaluate prospects and risks without understanding the field. It’s better to invest in projects of interest that motivate you to explore the sector in detail. This approach not only provides the opportunity for profit but also broadens your perspective and knowledge.
Investing online is a promising avenue that will become increasingly interesting and in demand with each passing year. The technology market is ever-evolving, and developers are keen to offer users new services and solutions. The crucial factor is making the right choices.
