How to sustain growth on Empire Avenue

How do I sustain growth on EA?

“… as a newbie to the Empire, I’ve had some fun this last week and watched my stock price rise. I’m wondering if anyone has any advice on how to keep this star rising?”

First it might help to know what you are experiencing. There seems to be a point for most members in the 70-90e range that is what sailors would call the doldrums – a windless area – and everything tends to grind to a halt.

I note a combination of factors that contribute to the slow growth in this range – dividends, profits from sales, diminished share price increases from new sales, and your share price itself.

  •  At least two of EA’s algorithms begin to greatly squeeze members stunting their growth when they hit this range – profits and price increase. It is within this range that the profit percentages plunge from the early 50% of sales down to only 10% giving you much less eaves to spend on others, which in turn stymies your ability to to attract reciprocal purchases. Also when you hit this share range the amount your shares increase in value from each new purchase begins to diminish. When you were new a 200 share purchase might raise your value 20cents, but now it might only be 10cents for 200 shares.
  •  Your Dividends. New members enjoy the fast rise in share price but typically don’t have a sound portfolio and the social media activity necessary for their dividends to keep up with their share price and provide a good return (ROI) to their investors. Low dividends and ROI does not entice new investment, and may cause earlier investors to sell when your share price stagnates and the dividends are not very good.
  •  Your share price in this range also becomes a stumbling block to its own ability to increase. Your shares are no longer “cheap” and easy for everyone to purchase. New members may look at your shares as too expensive for them (though they often splurge on way-over-priced under-performing so-called blue chips on the leader boards in ill-advised and somewhat pressured buybacks). Established members may pass over shares in this range because they have experiened the doldrums and know that your share value will probably grow very slowly while you are in the range, instead opting to chase after the low-priced newbies that hold the promise of at least short term gains, or invest in members with good and steady dividends.

There is nothing you can do about the EA algorithms increasing stranglehold on either of the diminishing returns related to new sales. It’s just part of the game. Your share price will only grow if you can get more people to buy more of your shares. The only thing you really have direct control over is your dividends.

You produce dividends for your shareholders through your earnings and social activity, not just activity on EA, but also through your connected social media accounts.

Back to your question, “How do I sustain growth on EA?”, the answer is quite simply – through “sustained” earnings and activity! The more active you are on EA and your connected accounts, coupled with the more you earn through your investment in other members, produces higher dividends. Higher dividends and ROI makes your shares more attractive for investment to other members.

How to work on increasing your dividends.

Basically there are three areas to concentrate on – your connected accounts, your portfolio, and your overall EA site activity.

  • EA tracks your activity to greater and lesser degrees on the various social media accounts you connect to your EA account. While there are many options, EA focuses on your Top Five connected accounts plus your activity on EA to determine your dividends to be paid out to your shareholders. If you have more than five connected accounts it is best to focus your efforts on the five you are most active on.
  • Making wise investments in other players is part of the game. Simply put, to increase the value of your shares and the dividends you pay out, you should investment in shares that provide you with the best return. Those dividends you receive help you to continue growing and purchasing more shares and increasing your wealth. If your portfolio is burdened with lots of poorly performing shares it will slow your overall growth. The generally accepted measurement of good dividend ROI on EA is 1.0% or better. This does not mean that you absolutely shouldn’t purchase shares in shares with lower ROI’s to make new friend connections, just that you should be concious of how big a chunk of potential earnings you have tied up in under-performing shares. Also this does not mean that the only shares worth buying are from the leader board, in fact it often means just the opposite! A goodly portion of the leader board inhabitants are under-performing. Also, you can buy a lot more different members’ shares of middle and lower priced stock thereby enlarging your base of connections.
  • Lastly there is your activity on the Empire Avenue site. EA is kind of vague about this, but most anything you do on EA contributes in some fashion to your overall activity and your creation of dividends to your shareholders. Not just buying shares. Thumbing things, using the communities, shouts, etc all add up. And don’t forget, EA is a “social media” community in and of itself, so being active and interactive on it helps build those social bonds just like on twitter or facebook or any of the other sites.

Ultimately everyone on EA is looking for a good return on their investment. What that means exactly is different from one person to the next and can change over time, but it encompasses three basic areas – share price gains, solid dividends, or the esoteric value of a “connection” made with someone on EA or any of the other social media sites where they interact. You can’t necessarily put a price on a connection/friendship, but people will buy and hold onto shares of “friends” regardless if their share price is rising, or their divs are outstanding. Friendship is about the warts and all! As for the two quantified ROI’s, people tend to sell shares when their growth flattens, especially if there are not good dividends to support continuing to hold onto those shares. Once you have passed the early quick rise of your share price, you have to create value through dividends and your connection to both retain old shareholders and attract new ones. — Cheers! (e)MrBill01


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