Why the First 7 Buyers on HedgeTrade Have Increased Profit Potential

HedgeTrade has been picking up impressive steam since its launch. The HEDG token has the 25th spot on the CoinMarketCap and it’s continuing to garner a lot of praise and attention. Bringing a fresh new take on social trading, many flock to it in the hopes of achieving great success.

As much as anyone can benefit from the platform, there are a lucky few who have higher chances. Seven specific buyers have a comparatively higher profit potential than others. But why is that? Who are these buyers? And for that matter, what is “profit potential”?

What does it mean?

‘Profit potential’ is basically the likelihood of generating revenue. After expenses, this could result in a considerable amount of net income. It is essentially the capacity for making more money in future transactions concerning business and/or trading. The profit potential is a vital factor when it comes to any business or investment plan. Moreover, it’s frequently a key element in the evaluation of high percentage trades in multiple asset markets.

It is imperative that we highlight the importance of the word “potential” in profit potential. Think of this as more of a projection and less like a guarantee. After all, “potential” refers to possibilities and probabilities.

There are some who refer to it as the monetization of your total capacity to drive earnings. In addition, profit potential measures the profit that a company could achieve assuming all its operations are efficient. And not just run-of-the-mill efficiency; peak efficiency. This will often include pricing, efficiencies, operations, and turnover, among other factors. Furthermore, look at profit potential as the maximum revenue that has the lowest possible costs.

Overall, it is crucial for you to remember that “potential” implies what a company can accomplish with ideal conditions. However, in reality, there are plenty of companies that fail to meet these conditions. You should also be realistic when it comes to peak performance. For example, imagine a manufacturing plant that is unable to run at 100% capacity. In this case, there is some downtime to dedicate to maintenance and other things.

Calculation

Let’s use a hypothetical scenario to explore the calculation of profit potential. Suppose that a business owner makes the decision to place a sale on widgets. Before the start of the sale, the inventory count consists of up to 100 units. The total sale price is $5 per widget, with the expenses amounting up to $3 per unit.

Taking these numbers into account, we can figure out the profit potential with the following:

100 units in inventory x (sale price of $5 per unit – expenses of $3 per unit) = $200 profit potential

With this formula in mind, let’s elaborate by illustrating it in a more simplistic way.

I x (P-E) = PP

In this case, “I” indicates the inventory or potential demand in units “P” stands for the sale price per unit and “E” is the expenses per unit. Finally, “PP” is, of course, profit potential.

It’s important to keep in mind that multiplying inventory (or potential demand) by sale price per unit equals out to anticipated revenue. Therefore, expected revenue fewer expenses will equate to profit potential.

5 ways to estimate

What happens when you reach the point where you are trying to decide what to include in your profit potential projection? Well, there are five important questions that you will need to ask yourself. They will help you determine what the profit potential of your product might be. Moreover, they may also offer the perfect insight into the projected viability of your business moving forward.

1 – What does your product or service’s long-term demand look like?

One factor that has an impact on profit potential is how feasible your products or services are for consumers in the long-run. Let’s imagine that you are selling something that is only useful in today’s market. Moreover, what you’re selling has very little potential for growth. Alternatively, maybe what you are selling is specifically for a niche and stagnant audience. In either of these cases, chances are your long-term outlook does not hold much water.

2 – How does the competition look?

This question is vital if you are entering an overly busy field or a field that has longevity. If you’re new to this and are going up against larger businesses, then your road to profitability will likely be steep. In this context, your profit potential would decrease. How much it decreases depends on what type of market share you plan to take away from the competition.

For example, let’s say that 10% of the population purchases your widget. In this case, you will want to project that you can convert 1-2% of your competition’s purchasers.

3 – What type of interest is there for your product?

Look around and see if people are more than willing to buy products that are similar to yours. Moreover, look into where they purchase them. Perhaps you should try searching Amazon or eBay to see if people buy products like yours there. Conduct a quick search with the use of your product keyword along with “free” (ex. “free widget”). It is important to make sure that people are indeed willing to pay for it. If a free version is flooding the market, then coming out with a paid one will fail to generate any substantial revenue.

4 – What is your customers’ lifetime value?

This is more than the initial outlook for your products and sales. You want to take a closer look at the potential for your customers to grow with you. In addition, the opportunity for good, consistent business. Selling a product or service that will prove to be useful to the same customer years later is imperative. It essentially means that your profit potential will maintain its steadiness.

5 – Are you able to lower the production cost for your product?

Probably one of the best methods of increasing your profit potential is to lower your product’s cost of production. You can go about doing this by being on the lookout for – as well as exploiting – efficiencies in the manufacturing process. In addition, you can seek out new vendors and cut down on fixed costs.

What about HedgeTrade?

Now that we know what profit potential actually is, we can start to answer the main question. That being, “Why do the first seven buyers on HedgeTrade have higher profit potential?” First, let’s provide context for what HedgeTrade is.

HedgeTrade is a forecasting platform tailor-made specifically for amateur traders who are looking to make trades alongside the experts. Traders with a lot of experience stake HEDG tokens to show confidence in their trade prediction “Blueprints.” Meanwhile, novice traders can purchase these Blueprints to trade like the pros.

  • When their predictions are correct, traders earn proceeds from the users who purchase their Blueprint. They may potentially earn more by staking additional HEDG tokens on their Blueprint, which increases the purchase price for other users.
  • If the trader’s prediction is incorrect, purchasers then receive a refund of the Blueprint purchase. Additionally, the initial purchasers for each Blueprint will share the staked tokens if the trader’s forecast is inaccurate.

The HedgeTrade platform unites novice traders and traders with experience together through a state-of-the-art system. By using this system, beginners are able to get an inside look as to how professional traders conduct their work.

Traders already possessing the skills for engaging in market trades share their knowledge and experience with trading novices. They are able to monetize their trade predictions by way of creating “Blueprints” on the HedgeTrade platform. Those who are new to trading can purchase these to unlock the prediction details. The traders that post their predictions can actively earn the platform’s currency (HEDG tokens) for sharing their knowledge. It’s a win-win for both the beginners and the veterans.

If you want to learn more about how HedgeTrade works, read “HedgeTrade – How it works.”

The lucky seven

So, how does the payout work on the HedgeTrade platform? Well, once a Blueprint reaches its expiration, one of two things will happen to the tokens that were staked. They will either return to the Blueprint creator or to the users who bought the Blueprint. If the Blueprint is successful, then a 30% commission charge will be made on the HEDG tokens that users purchase the Blueprint with. What remains will go to the user responsible for creating the Blueprint.

A successful Blueprint that has no purchasers results in a charge of a 10% commission on the staked HEDG tokens. If the Blueprint was unsuccessful, then a 30% commission charge will be made on the HEDG tokens that the creator was staking. What remains will go to the purchasers of the Blueprint.

Now, there may come a time when a Blueprint will close neutral. In other words, there was a failure to hit both the Entry and Exit. In this case, there will be a charge of a 10% commission on the HEDG tokens that the creator was staking. Any users that bought the Blueprint will receive a full refund.

This is all well and good, but what does it have to do with the lucky seven buyers? This ties into the unsuccessful Blueprint that leads to a 30% commission charge on the creator’s staked tokens. Moreover, that the purchasers of that Blueprint receive what remains. If you just so happen to be one of the first seven users to purchase a Blueprint, then you will earn extra proceeds. And this is in addition to a refund of your purchase price. Therefore, these seven buyers will garner a higher profit than the rest of the buyers.

Have you joined the HedgeTrade social trading platform? Traders are earning and newcomers are learning, so be sure to sign up at HedgeTrade today. We’ll see you on the Leaderboard!

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