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> Is this really scalable? To what scale? If they've got ~100,000 active lead investors, each executing one trade a week, that's 1,000 reviewers reading 100 pl
by jessedhillon 11y ago
> Is this really scalable?
To what scale? If they've got ~100,000 active lead investors, each executing one trade a week, that's 1,000 reviewers reading 100 plans a week. If it takes 15-30 minutes to read and validate each one (I'm assuming a cursory check here), then we're talking ~35 hours a week.
If each lead investor's trade can trigger 25 follow-on trades, that's $8.75M in trading fees, per week. Obviously, those are nice, blue sky numbers, but I think it's clear that in their best case, the biggest problem will be hiring enough qualified reviewers, and a thousand employees is a reasonable hiring target IMO.
- notahacker 11y agoUsing your numbers and assuming employees adequately qualified to assess investment plans tends to cost in the $2k/week range, you'd want to be pretty confident that lead investors typically were generating something approaching 25 follow on trades though...
- discardorama 11y ago> that's $8.75M in trading fees, per week. But those fees go to the brokerage (Tradier?), not them, right?