It seems like a “Too Good to Be True Offer,” but here we will explain how it can be both “Too Good” and also very true.
On average, banks offer annual returns of around 1% or 2%, while investing in S&P 500 companies can yield an average annual return of approximately 10% (you can find the report here). So, how can we claim that you can generate upto 100% returns on your investment? By keeping all your money in the business for a year, when you withdraw your money after a year, it can potentially around double your initial investment, turning your $50,000 upto $79,962.6.
Here is how we make this seemingly too good thing become true:
We understand that every investment carries the risk of loss. As we engage in reselling goods, we employ a ‘Diversification’ strategy to mitigate the risk of loss. Here’s how it works:
We invest in 7 different products, especially when there is uncertainty about their profitability. This way, if some products yield losses and others provide medium and high returns on investment (ROI), the average ROI might still be adequate. We continue with the products expected to generate good profits in our next investment, leaving out the loss-making ones.
Here’s a breakdown of the products and their ROI along with investment allocations:
Product-1: ROI: 5%, Investment Allocation: 10%
Product-2: ROI: 10%, Investment Allocation: 10%
Product-3: ROI: 15%, Investment Allocation: 15%
Product-4: ROI: -10%, Investment Allocation: 5%
Product-5: ROI: 25%, Investment Allocation: 20%
Product-6: ROI: 5%, Investment Allocation: 10%
Product-7: ROI: 30%, Investment Allocation: 30%
To calculate the average ROI for these products, factoring in their investment allocations, we use a weighted average method:
Weighted ROI for Product-1 = 5% * 10% = 0.5%
Weighted ROI for Product-2 = 10% * 10% = 1.0%
Weighted ROI for Product-3 = 15% * 15% = 2.25%
Weighted ROI for Product-4 = (-10%) * 5% = -0.5%
Weighted ROI for Product-5 = 25% * 20% = 5.0%
Weighted ROI for Product-6 = 5% * 10% = 0.5%
Weighted ROI for Product-7 = 30% * 30% = 9.0%
Now, sum these weighted ROIs:
0.5% + 1.0% + 2.25% – 0.5% + 5.0% + 0.5% + 9.0% = 17.75%
So, the average ROI for these products, considering their investment allocations, is approximately 17.75%.
As mentioned earlier, the average investment rolling time is around 2 months (which can vary, as explained). In a year, we can potentially have around 5 or 6 cycles. Therefore, if you invest approximately $50,000, it can work like this:
Cycle 1:
Initial Investment: $50,000
ROI: 17.75%
Return for Cycle 1: $50,000 * 17.75% = $8,875
After Cycle 1, your investment becomes $50,000 + $8,875 = $58,875.
Cycle 2:
Initial Investment: $58,875 (from Cycle 1)
ROI: 17.75%
Return for Cycle 2: $58,875* 17.75% = $10,450.31
After Cycle 2, your investment becomes $58,875+ $10,450.31= $69,325.31.
Cycle 3:
Initial Investment: $69,325.31 (from Cycle 2)
ROI: 17.75%
Return for Cycle 3: $69,325.31* 17.75% = $12,305.24
After Cycle 3, your investment becomes $69,325.31+ $12,305.24= $81,630.55.
Cycle 4:
Initial Investment: $81,630.55 (from Cycle 3)
ROI: 17.75%
Return for Cycle 4: $81,630.55* 17.75% = $14,489.42
After Cycle 4, your investment becomes $81,630.55+ $14,489.42= $96,119.97.
Cycle 5:
Initial Investment: $96,119.97 (from Cycle 4)
ROI: 17.75%
Return for Cycle 5: $96,119.97* 17.75% = $17,061.29
After Cycle 5, your investment becomes $96,119.97+ $17,061.29 = $113,181.26.
Cycle 6:
Initial Investment: $113,181.26 (from Cycle 5)
ROI: 17.75%
Return for Cycle 6: $113,181.26* 17.75% = $20,089.67
After Cycle 6, your investment becomes $113,181.26+ $20,089.67= $133,270.93.
Rounding it to $133,271
If there are any expected or unexpected expenses totaling approximately $53,308.4or around 40% of the generated profits before taxes, you would still have turned your initial $50,000 into $79,962.6 (that is upto 50%+ ROI). Please note that the cumulative final annual return amount does not include tax deductions; it is calculated after deducting various product costs and paying our service charges.
This is how this seemingly “Too Good to Be True” offer can indeed be a very true offer for you!