A little late to the party here with this comment, but I definitely have cursory interest in an investment.
An important consideration (that you may already be neck deep in thinking about) is whether the initial $50k invested will be paid out back to the investors before the 50/40/10 split kicks in, similar to "paying out the advance" in traditional publishing before royalties kick in.
As a note, net profits would have to be over $125K before investors reach breakeven with a 40% share.
Just curious as to what the plan would be here to balance risk exposure—and I understand the risks are shared; investors with the financial risk, you with the immense time and energy committed.
In this case it is not an advance on future sales. It's just an investment in the book. Then when I sell it, the split will kick in immediately. If I sell 6250 ebooks at $20 investors will break even, with $125,000 in earnings, 40% to investors. I think this is more than doable. And I am hoping to far surpass that (and sell print books as well!).
It's a risk to invest in and write, for sure. But there seems to be a strong community around this book and I'm hoping that proves true when its time to sell it too!
"Disclosure: ,,,No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder’s platform. Any indication of interest involves no obligation or commitment of any kind."
Ok, but the Wefunder platform is asking people for their credit card or bank account and routing numbers, which leaves one wondering what exactly is going on with Wefunder, regardless of what you said here. One hardly likes to be up in the air like that for months to a year on end with bank information just out there in the ethernet like that.
From what I understand, this is just a reservation. You put in your information, but you won't be charged until I file a Form C and open the round, and then you will have to confirm to go ahead with the transaction.
Sorry for the confusion, I know it's a little strange. It's basically making investors angel investors. So it's a little different then just charging a credit card.
At that time, will we be able to increase the investment? And will larger investments get a larger cash return when profits are divvied up? Also: What is the timeframe for when all this gets going? Are the documents extremely arduous to fill out? In life, the big thing that stops me from doing things is filling out docs…
Yes, you can increase your investment now, as well as after I open the round (which I will do once I hit $50,000). But not once I close it (which will be about one to three months after opening it). You shouldn't have to fill out any documents, only I will (and my lawyer!). WeFunder makes it pretty easy for everyone else!
So I am looking at what level (the $100 I selected is just silly as an investment, though perfect as a donation to something one believes in). So will larger investments get a larger cash return, or just more perks? I certainly don't want to reserve fifty copies of the book, for instance!
Yes, larger investments will get a larger cash return—they own a larger share. So, for example, imagine one person invests $30,000, one at $10,000, one at $5,000, and 25 people at $200. They will own 60%, 20%, 10%, and 0.4% of the total investor returns respectively.
If I sell 20,000 ebooks at $20, we'd earn $400,000. 40% of that ($160,000) will go to investors which means those people would earn $96,000, $32,000, $16,000, and $640 respectively.
I'm also happy to do custom tiers. Those are just guidelines to get people involved, and I've been meeting with investors personally to see what would be the way they'd be most interested in participating. You certainly don't need 50 books if you don't want them. 😆
Oh wow, this is all so exciting and really energizing to read about the movement you're pushing to create (continue?). I also agree that a new economic model is crucial, but I've rarely seen someone advocate for the change in such a focused manner. Will definitely be following this.
Elle, you could use a public page on Notion to share all your finances. Allows you to set tables/databases and you can make multiple pages shared so it works like a clickable website would. Unless you want something more complex ofcourse
That's so nice! I want to give participating writers a share of my annual revenue as part of a sort of "writer's revenue pool." But this needs to be dynamic depending on my earnings. This is the part that is turning out to be tricky to me!
Yeah, that’s basically how real estate syndications works. You set up an LLC or LP with a general partner who does all the work (you) and limited partners (passive investors) who receive dividends.
Anyway, shoot me an email if you want to talk in more detail. me@djscruggs.com
Will there be a way to sell our shares some time later?
Hmmmm, I'm not really sure how that would work. I'll ask Jonny, the president of WeFunder, on my call with him next week.
A little late to the party here with this comment, but I definitely have cursory interest in an investment.
An important consideration (that you may already be neck deep in thinking about) is whether the initial $50k invested will be paid out back to the investors before the 50/40/10 split kicks in, similar to "paying out the advance" in traditional publishing before royalties kick in.
As a note, net profits would have to be over $125K before investors reach breakeven with a 40% share.
Just curious as to what the plan would be here to balance risk exposure—and I understand the risks are shared; investors with the financial risk, you with the immense time and energy committed.
In this case it is not an advance on future sales. It's just an investment in the book. Then when I sell it, the split will kick in immediately. If I sell 6250 ebooks at $20 investors will break even, with $125,000 in earnings, 40% to investors. I think this is more than doable. And I am hoping to far surpass that (and sell print books as well!).
It's a risk to invest in and write, for sure. But there seems to be a strong community around this book and I'm hoping that proves true when its time to sell it too!
Let me know if you have any further questions, and thanks for your interest in investing!
"Disclosure: ,,,No money or other consideration is being solicited. If sent, it will not be accepted. No offer to buy securities will be accepted. No part of the purchase price will be received until a Form C is filed and only through Wefunder’s platform. Any indication of interest involves no obligation or commitment of any kind."
Ok, but the Wefunder platform is asking people for their credit card or bank account and routing numbers, which leaves one wondering what exactly is going on with Wefunder, regardless of what you said here. One hardly likes to be up in the air like that for months to a year on end with bank information just out there in the ethernet like that.
From what I understand, this is just a reservation. You put in your information, but you won't be charged until I file a Form C and open the round, and then you will have to confirm to go ahead with the transaction.
Sorry for the confusion, I know it's a little strange. It's basically making investors angel investors. So it's a little different then just charging a credit card.
At that time, will we be able to increase the investment? And will larger investments get a larger cash return when profits are divvied up? Also: What is the timeframe for when all this gets going? Are the documents extremely arduous to fill out? In life, the big thing that stops me from doing things is filling out docs…
Yes, you can increase your investment now, as well as after I open the round (which I will do once I hit $50,000). But not once I close it (which will be about one to three months after opening it). You shouldn't have to fill out any documents, only I will (and my lawyer!). WeFunder makes it pretty easy for everyone else!
So I am looking at what level (the $100 I selected is just silly as an investment, though perfect as a donation to something one believes in). So will larger investments get a larger cash return, or just more perks? I certainly don't want to reserve fifty copies of the book, for instance!
Yes, larger investments will get a larger cash return—they own a larger share. So, for example, imagine one person invests $30,000, one at $10,000, one at $5,000, and 25 people at $200. They will own 60%, 20%, 10%, and 0.4% of the total investor returns respectively.
If I sell 20,000 ebooks at $20, we'd earn $400,000. 40% of that ($160,000) will go to investors which means those people would earn $96,000, $32,000, $16,000, and $640 respectively.
I'm also happy to do custom tiers. Those are just guidelines to get people involved, and I've been meeting with investors personally to see what would be the way they'd be most interested in participating. You certainly don't need 50 books if you don't want them. 😆
Oh wow, this is all so exciting and really energizing to read about the movement you're pushing to create (continue?). I also agree that a new economic model is crucial, but I've rarely seen someone advocate for the change in such a focused manner. Will definitely be following this.
Thank you so much Kern! I'll be working hard on this. We need solutions now more than ever!
Elle, you could use a public page on Notion to share all your finances. Allows you to set tables/databases and you can make multiple pages shared so it works like a clickable website would. Unless you want something more complex ofcourse
I guess that's an easy way to do it! Thanks for the thought!
The world needs this book desperately and I proud to have joined the crowdfunding!
Thank you so much Camille! I can't tell you how much I appreciate that!
Hi Elle, if you can’t find anyone for the ledger/cap table my husband can help. He worked in a venture building company.
That's so nice! I want to give participating writers a share of my annual revenue as part of a sort of "writer's revenue pool." But this needs to be dynamic depending on my earnings. This is the part that is turning out to be tricky to me!
I’ll DM you
This is cool! Shared
Thank you so much!
so the spine just says WOE?
It's definitely the kind of book meant to be displayed face forward 🤓
if you haven't already gone into printing I'd recommend you reconsider this position. thats...not how books work...
It is how collectable books work! This is not a traditionally published book so I'm excited to take some artistic liberties.
good for you. You do your thing.
I might be able to help with the cap table. I’ve done real estate syndications so I assume the setup is similar. DM if you’re interested.
Thanks DJ, I would assume it's different from real estate syndications?
How are you structuring it? Real estate is similar to VC but simpler.
I want to give participating writers a share of a writer's revenue pool as an annual distribution.
(I also want to give participating investors a share of sales revenue, but that part's easier to structure!)
Yeah, that’s basically how real estate syndications works. You set up an LLC or LP with a general partner who does all the work (you) and limited partners (passive investors) who receive dividends.
Anyway, shoot me an email if you want to talk in more detail. me@djscruggs.com
Ok just emailed you. If you don't get it check your spam. Thanks so much!
I'm not in a financial position to participate in funding but I think this is really cool and I'm looking forward to following along!
I so appreciate that Kristy! Thank you so much for being here!