The deal, which was later reported by major news media around the world, did not portend much initially. It was struck in 2005 between a high school dropout with a history of petty thefts and a little-known startup with no revenues. The latter wanted the former to spray paint graffiti on their office walls. The former brazenly asked for sixty thousand dollars — an astronomical fee in graffiti business; the cash-strapped startup countered by offering him its shares, which had no market value.
Seven years later, the company, no longer a startup but the largest social network, went public. That very day, the Facebook stock received by David Choe, the graffiti painter, turned into liquid assets valued at more than two hundred million dollars. As the stock price has been climbing, David’s network exceeded half a billion dolars.
This remarkable rags-to-riches story is now prominently featured on Stock4Services.com, deployed by renowned KMGi Group to facilitate similar investments of services into emerging growth companies.
“There’s over a quarter of a trillion dollars per year of unsold advertising inventory in the USA alone, which could be invested into promising businesses,” says Alex Konanykhin, CEO of KMGi “Yet broadcasters and publishers let it perish instead of investing in promising businesses that seek visibility. It’s a colossal waste, and we seek to correct it, generating tens of billions of dollars of value.”
Stock4Services also facilitates investments of other kinds of services, including online and outdoor advertising, visibility at major events, product placements, celebrity endorsements, public relations, programming, design and creative services. While no one can assure returns as high as in the Facebook example, investments can be quite secure, especially if made into VC-funded or public companies.
“Companies invest trillions of dollars in the stock market,” says Jay Baguioro, president of Stock4Services. “We provide them with opportunities to invest their services, without having to sell them for cash first. It makes the market more efficient and allows for faster wealth accumulation and economic growth.”
Stock4Services’ website lists some additional compelling examples that support their premise.
Rapper 50 Cent accepted stock from the company behind Vitamin Water in exchange for his endorsement in 2004. When Coca-Cola bought the company four years later, his after-tax earnings exceeded $100 million.
The stock that actor William Shatner received in exchange for being a pitchman for Priceline in TV commercials has risen to over $600 million.
Canadian geologist Chuck Fipke holds about a billion dollars in stock due to the work he’s done uncovering diamonds in the country’s Northwest Territories.
And now Stock4Services facilitates such deals to all service providers and advertising inventory owners. “We take a standard agency commission in the form of the stock of the transaction, so we only make money when our investors make money,” points out Jay Baguioro. “It motivates us to seek investment opportunities with the highest and fastest return.”
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