Get Your Return Faster

Get your return faster

Perhaps the most innovative aspect of Novanty that excites our Buyers the most is the control we give them. By letting you adjust your own Sell Price, and letting you also sell to other Buyers, we give you the power to set your own strategy in a meaningful way. Adjusting your sell price down helps your inventory become more liquid, and reduces risk. While at the same time, if done right, it can also increase your annualized return.

You think of other programs that you can put your money into such as Lending Club or Prosper. The advertised expected ROI is roughly what you can expect to get per year on your money. On Novanty, the Max ROI is what you can expect to get per unit of inventory regardless of when you sell it. This means the faster you can sell your inventory, the faster you can get your return. With a faster return, you can use that same money to buy more inventory. Because of this, some aggressive Buyers could use the same money to buy and sell inventory many times in one year for a much higher annualized return. Even without considering the compounding that you can take advantage of.

Let’s put this into perspective.

If a person were to invest in a loan on Prosper that offered 12% annual return, they would theoretically make 12% annual ROI. But if the same person would have bought inventory on a Novanty Group-Buy that offered 12% Max ROI, then they would make 12% whenever their inventory sold. Since our Group-Buys average a 12-month term, then they would make their 12% return within a year or less.

But if they would reduce their Sell price so that they make say 5%. Then they would be moved up the Sell Order list and perhaps be the first to sell their inventory. They might get their 5% return in 1-2 months. Sure, 5% is less than 12%, but they can now use their same money + 5% to buy more inventory from another Group-Buy. After compounding, do this 6 times a year and your return if all goes well should be over 27% on the year. More than double the already impressive 12% return had they bought and waited it out.

If the Buyer were even more aggressive and reduced their Sell Price so they only get 1-2% ROI per transaction. Other Buyers who might have just been too late to the Group-Buy might buy from them within literally less than an hour. Sure, 1-2% is significantly less than 12%, but if there are enough Group-Buys to buy inventory from, you could theoretically do that 10+ times a day. 7 days a week. Those 1-2% returns can really add up. Once we start getting that many Group-Buys to buy from anyway.