Seeking Opinions On Possible Business Investment
I have a friend that has started a company a while back that advertises for local businesses for free. The idea is to get discounts from those businesses, turn around and sell memberships to locals to use the discounts. Membership fees are fairly low a month. He's been at it for a while and I have to give it to him, some of the discounts are pretty dang good, I even pay for a membership but I've yet to use it (I might have a reason why in my con list). He's a really good salesman, can talk to about anyone and convince them to do really anything. I've been watching him do this for almost a year but it looks as if he's walking up an escalator going down, and I may know some of the reasons why.
1. He doesn't have the funds to really advertise/invest back in the business
2. He's only using fb for advertisement.
3. His website is not 100% legitimate.. Could be better with an actual domain name.
4. He has good ideas and actually quite a few clients (I guess you call them non paying clients) but doesn't really have much of an idea about marketing/seo/social media/online or technical skill sets.
5. I don't think the layout of the process to get the discount is quite right, but it's not bad, but needs a tweek.
There are many more cons that I could go into but I think these are the main concerns. I've been wanting to get back into business lately. I've been part of partnerships and have had a few of my own start ups. More brick and mortar type of businesses (3 separate ones) and they were successful but somewhat short lived due to unforeseen and poor judgement making events.
Now I'm older, have little more experience, I think I can fill in some of the missing gaps that my friend is lacking. At first I wasn't sure if this business plan was a good idea and sounded kind of silly. I think it takes a lot to convince somebody to spend money to save money, but there really is a savings. One visit to a local business can pay for the membership. There might be a way to get around that curve.
My proposal would be to invest money (I have a steady job) and fill in some of the gaps I think he's lacking. I'm not a marketing guru or anything by any means but I played with affiliate marketing a while back and this would be something I would be willing to study and learn more as it went. I also have a lot more web and computer experience than he does.
Again, main focus is supporting local business, no franchises, Ect. Any thoughts, ideas, suggestions? Or is this something that may not be worth to get in to. We live in a fairly large metropolitan area, however I'd say target market around 30-50k people.