Website Funding - How Much? Spend On.?

[olimits7]

Hi,

I was just wondering, if you could get website funding easily from the "ABC VC/Angel Investor Company":

1. How much would you ask for?

2. Where/What would you spend the money on?

a. Website development? Advertising/Marketing/SEO? Warehouse Equipment? Hardware/Servers? Employee Salaries? Etc...?

b. What spending percentage (%) from your total funding would you give to each criteria in (2a)?

Thank you,

olimits7

[olimits7]

Ok, I guess I'll go first! ;-)

I would probably ask for $75K, and would allocate it to the following:

- Advertising/Marketing = 45%
- Website/Software Development = 35%
- Hardware/Servers = 20%

olimits7

[BillyS]

$200,000 - $1,000,000

Do you know how much you need? Are you planning to work for free?

[jsinger]

Do you know how much you need? Are you planning to work for free?

Well if I were starting a company the old fashioned way I'd work for free until the company could afford to pay me. That IS the way I started my now-old and profitable company.

But if some VC in a Mercedes were funding me, I guess I'd DEMAND at least 200k from the get-go.

Guess which method usually produces the more successful company in the long run?

---
Hardware and Servers: $0, except for a machine or two for the office.

[SevenCubed]

From my perspective the first thing I would need to know before I could even consider offering my perspective is whether or not this website would be to compliment an existing bricks and mortar business of is it going to be launching from scratch? Next important consideration is audience reach: local, regional, national, or international?

Based on experience; if a site is properly put together from the inside out it will lessen the burden of SEO and marketing -- save those dollars and invest it in a good hosting service -- preferably a dedicated server. Those are a few basics that come to mind for me. I can expand on that and get into more detail if you provide a bigger picture.

[olimits7]

I didn't do any detailed analysis to get to that figure; just asking about this topic as an interesting/fun exercise to do...I'm sure I would ask for a lot more after doing a proper detailed evalutaion of my website.

But in my current situation; in which I have a full-time job, doing this ecommerce thing on the side, and being a one man shop...I would definitely like to see what $75K would do to my website revenue.

Work for free; what is that? haha...never have, never will!

olimits7

[SevenCubed]

Work for free; what is that? haha...never have, never will!

...ok but then you want free advice here...

[olimits7]

...ok but then you want free advice here...

I don't see the connection; unless you are a professional consultant that usually charges for giving advice to people.

I take advice on the internet with a grain of salt, I just thought this would be an interesting question/topic to ask people. It's not like I'm taking your "free advice", and following step-by-step with everything you said.

Forums are great way to interact with people who have the same interests as myself, share ideas, network, people helping people, etc...so I don't look at it as "free advice".

If I wanted "professional advice" I would seek out a consultant that specializes in giving me whatever professional advice I'm interested in, and I would gladly pay them for their services.

olimits7

[BillyS]

If I wanted "professional advice" I would seek out a consultant that specializes in giving me whatever professional advice I'm interested in, and I would gladly pay them for their services.

Do you expect to get any more replies after that last comment?

I was going to give you some more free advice (didn't have time in my last post), but after that last comment it will cost you $10 / word. Let me know if you're interested. (I've waive the $550 fee for this post).

[SevenCubed]

Professional advice is what this whole forum is about. It's a forum of people who earn their living doing the very thing you are asking about. I'm sure you are well aware of that. I've only been here about a month and I recognize the well of knowledge here runs very deep. Cost - $0.

But I also know better than to think that I can just continue to tap that knowledge without giving back to the group when I can. I've learned tremendous amounts of very useful tidbits from the folks in the Apache forum here. My payment for that education is to pitch in where I can if I have knowledge that might help someone else solve a problem or at the very least if I don't have an absolute answer then maybe provide a clue that might help them continue in their own problem solving.

And yes I do offer professional consulting services surrounding web development with a focus on small businesses or micro businesses -- those who typically aren't ready to spend someone else's money or cannot afford the often high costs of what I can provide.

I charge about 1/3 market value for my services but I'm also very selective about who I will accept as a client. If someone walked into my office and plunked down a $75,000 bag of loot and said "what can you do for me" I would give you a referral to a competitor who I know thrives on seeing "VC" people walking through the door. My reason -- I don't live for the mundane world. I get enjoyment and satisfaction out seeing those who deserve to succeed do so. We reap what we sow, if not in the immediate present, then sometime in the future without doubt. That much I do know.

Effectively, this post is indeed seeking "professional consulting". I can't speak for anyone else but myself but that statement of "not working for free, never have, never will" is offensive when you understand the company that we are among here.

Peace :)

[olimits7]

I'm not on this forum to argue with people, and if my statement of "working for free" was offensive to some that's not how I meant it and I apologize.

I was just joking around and making a general statement of my own situation, and it wasn't directed as a personal stab to anyone in this post/forum.

olimits7