So, I thought I would post something about what I see for the future of Delicious Demar Enterprises, since it is only fair that investors and potential investors know what the plan is into the future.
As I have mentioned many times before, here and elsewhere, part of the rush of SL and business in SL is the challenge of building something out of nothing. It's something that I really enjoy. and for all of you who think I am getting rich from DDE, I'd just like to mention that i have never taken a penny out of any of my businesses for personal use outside Second Life. Everything I have made, I have put back into the business. In my view, it's the only way for me to grow the business at the pace that I want. If I were to take half the profits out for myself, or even pay myself a salary, then that money is not being used to create wealth for the company.
That is not to say that at some point, I won't sit back and enjoy some of the fruits of my labours. There will come a point when I stop expanding the company, or at least the cash engine of it, the land business. When DDE is large and profitable enough to provide generous regular dividends to its shareholders, I may consider both taking my dividends out of SL, and paying myself a salary - but from where I sit right now, I think this is a loooong way away. I want to make sure that DDE is totally solid and that shareholders are fat and happy before i consider it.
The land business is about as stable as it has been in a while, and is clearly one of the most stable sectors in Second Life. However, in some ways, we are all subject to the whims of Linden labs - they could change tier prices tomorrow, or decide to do away with Lindens altogether - who knows! And so, in SL, the company that sits back and rests on its past accomplishments is the business that is slowly dying. I am always keeping my eyes open for opportunities in SL, and I think the next 6-12 months is going to be a watershed time for business in the metaverse. Whole new streams of business will come online with the potential of other virtual worlds on the LL platform, which will provide great opportunities for those who can take advantage. I intend to keep myself informed and in touch with the opportunities that arise, and position myself to jump in at the right moment, using whatever expertise I have build in SL over the last couple of years.
As anyone who has watched DDE knows, I am by nature relatively conservative - I am careful about what I commit to, and am careful to examine decisions from all sides before making a choice. However, once a decision is made, I will move quickly. The recent secondary offer is a good example - the opportunity to get relatively cheap land from KJL is a limited window of opportunity - a few weeks to a month - in which DDE has an opportunity to significantly grow its land base, at about 70% of the usual cost of buying islands from Linden Labs. So, I decided to consult with my shareholders, and with their blessing, posted a large secondary offer - to take advantage of this great opportunity. Normally, I would not consider expanding this quickly, but the current situation seemed to good to pass up.
I was really heartened by the overwhelming support of my investors. I contacted a number of them individually, and of course held a resolution vote on the WSE - and the support was very, very strong for the secondary. As usual, they asked me some great questions, and offered some great advice, which was much appreciated.
So, overall, what people wanted to know when I talked to them was, what is the plan for the secondary money. It's very simple. The cash raised in the secondary offer will be used to buy islands from KJL, which is liquidating all of its assets. Many of these islands are already totally full and profitable - and I will of course honour the existing arrangements Kejo has with his tenants and land owners. The rent paid by these tenants will typically allow DDE to realize a profit of between $100 and $300 USD monthly for each sim,depending on the specific sim, which costs me between $1100 and $1500 USD to buy. If you want to know more about why the huge variation, let me know and i will make a post to explain. So, profit per sim, per month runs from 10% to 30% of initial purchase price, and from 30% - 100% of monthly tier costs.
Depending on the sales of the secondary shares, DDE will be able to buy between 6 and 12 new islands in this way, saving an estimated $2500 - $5000 USD in the process, and will have total holdings of between 20 and 26 sims. At this level, DDE will have a solid critical mass, and can slow the pace of expansion to that supported by profits - probably in the neighbourhood of 1-2 sims per month over the next six months.
As I have mentioned on the WSE - DDE has committed to a guaranteed dividend of 0.02L per week, per share, for at least the next three months. I fully expect to be able to provide even higher dividends after that time. And, when I say "guaranteed dividend", I mean GUARANTEED, which means that if I have to sell my fricking car to cover the dividend, I will do so with a grim smile. Just so you know... lol
I am really hoping that investors see the opportuntity that I see. I really see this secondary as the way to take DDE to the next level of success, built upon the solid foundation of its past success. Please feel free to leave me a comment or a question here - I will endeavour to answer as quickly as possible and to the best of my ability.