Distribution of revenues and a change in the strategy
Founder of fatcats.market
Published: September 27, 2018
Today at 11:01 p.m. (GMT+3) we will start distributing revenues among the holders of our tokens. We will publish all necessary instructions on our website. You will see a link on our Telegram-channel. Up until that time, those who want to receive payouts have to transfer their tokens from the exchange to their wallets. The process of distribution itself will last until 11.59 p.m. on Sunday (September 30).
How much money will be distributed among token holders?
Now, let's talk about the amount of money we will distribute among the investors. Right now we will distribute a bit more than 1 Ethereum. I had argued about this not only with the investors but with business partners as well. The general idea was that we should either postpone the day of payment or transfer additional money to increase revenues. I have listened to all opinions and pieces of advice and decided to follow my main principle – be honest and open with the investors. I'd rather distribute one well-earned Ethereum than 50 fraudulently funneled.

About half a year ago, Fatcats.market did not even exist. Now we have a website, private ads, advertisements and first revenues which the platform has brought. 90% of startups in any industry pay nothing to their investors. They do not pay even 1 ETH but attract million dollar investments. We are among the lucky ones who actually managed to launch a project. I am still proud of our achievements, even if they may seem rather small. I am like a proud father who hears the first words his child says – few words, mumbling that is hard to understand – but those words had been said. This is a small victory.
Further strategy
Let's now proceed to our further development strategy and steps to be taken. When we were launching the project, there was only one thing I wanted – to make selling and purchasing legal goods and services for crypto a reality. A couple of months after we had started, rival companies mushroomed. I was actually quite happy about it. What made me upset was that all the surveys showed that crypto investors were eager to buy various goods for crypto. However, in reality, stereotypes about payment methods are hard to overcome. As a result, any transaction made on the platform is expensive for us.

In addition, we do not have million dollar investments to rely on and spend on re-educating the market. After all, the amount of investments we have collected is only a few hundred ETH. Consequently, paying around $400 for a client, while earning only $1-1,5 from a transaction is unprofitable for us. It is way too expensive. What should we do?

I have formulated the oblective as follows: what goods are sold on the platform way easier than others? Which goods we can charge the highest commission fees on? Formulating the right objective is always the hardest. I just had to ask the right question. Because the answer was right before my eyes.

The solution and a plan for the next year
The first deal made on the platform was a purchase of a small sculpture. We had not advertised that sculpture in any way. We advertise neither paintings nor any other works of art but people still buy them, while other goods we have spent much money on, e.g. cars, bring no real customers to the platform.

At the same time, commission fees we charge on antiques, rare items, curiosities and artworks start from 20-25% and reach up to 45-50%. As soon as I understood this, I contacted art sellers and discovered that they are ready, though a bit cautious, to place their goods for sale. Upon hearing this, I contacted experts who specialise on the Asian markets and they readily supported the idea of selling rare and expensive goods as well as artworks for crypto.

Thus, the idea has begun to take shape. Will we continue to develop a marketplace for selling ordinary goods? Sure. At the same time, we will develop and may concentrate a bit more on selling rare and exclusive items. We will eventually create a large separate category with a separate domain for this.

This is our plan. And I already see how to implement it and earn thousands ETH to distribute among the token holders. Previously, I have been really careful about my statements, predictions and profit forecasts. Why? Because I had to assess the market first. We needed to collect empirical evidence: how much a client on the platform costs, how much money can a client bring and so on. Now we have answered all these questions and can make some predictions.

Message to the investors
Now I want to address the investors. My cards are on the table. Now it is your turn to act. You can sell your tokens on an exchange. This will be a gesture. You can support the project and invest into it. This will also be a gesture. But keep in mind that getting all emotional, worried or trying to give advice — this is not support — it is a waste of our time. And we don't have much of it.

The Fat Cats team carries out a hard and interesting project. The project has grown a bit and borne its first fruit this autumn. Small and sour. Next year, the harvest will be richer if we water and fertilize it. But only those who support the project will eat the tastiest and sweetest fruit.