ICO Funding Alternative Idea

Count me in the camp that there are too many ICOs. Mainly due to two reasons:

1. No real need for a token, and,
2. No real need/use for blockchain.

I came to this realization when I was started researching whether an ICO would be a good way to get funding for my company. (Two year old start-up, hard product, non-digital, non-software.)

We just could not fit a token or a blockchain into our business model.

However, this led us to think of another idea in order to get funding. Let me present a hypothetical scenario (don't want my competitors stealing my idea!) We welcome your thoughts, opinions, and suggestions.

PRODUCT - (once again, a hypothetical)

An upscale, patented, once-daily shampoo/hair treatment for women. The cost is $30.00 USD for a 30 day supply, and includes shipping. It is sold direct to consumer exclusively via online sales only thru our website. The product is designed to be purchased every month.

MANUFACTURING

We have been using a contract manufacturer, but want to get funding to build our own manufacturing facility. Turnaround times, cost, and quality control are the biggest reasons we want to manufacture this ourselves.

MARKETING

The best way for a woman to want to purchase the product is if they try it first. To get the full/best results, the product would have to be used for 30 days. After the 30 days, if she sees the results she wants, she will want to continue purchasing every month. (Our current success rate is 97% of women that try the product the full 30 days, want to purchase!)

Therefore, we want to be able to send out a Free 30-day supply to targeted women in the US. (International sales will come, but at this point, we are only selling in the US.)

(Our cost to manufacture and to market the product is $20.00, and shipping is $4.00. Our profit is $6.00 per unit.)

BLOCKCHAIN and TOKEN

As you can see, there really is no need for either.

ICO FUNDING ALTERNATIVE IDEA

Instead of using tokens and doing an ICO, we've come up with another idea.

1. Sell the units for $30 USD
2. We would ONLY accept payment in one cryptocurrency (preferably a newer, lower-priced native coin that has a good community.)
3. An "investor"/purchaser can purchase as many units as they choose in $30.00 USD crypto increments.
4. We can send as many units to the "investor"/purchaser as they wish to receive, and they can "donate" the rest to the company (us) so we can distribute them for Free to targeted women.
5. (Here's the key,) After a woman tries the product for 30 days and decides she wants to order it every month, she can order from our website, ... BUT we would only accept payment in our chosen cryptocurrency. (we would contractually obligate ourselves to only accepting a given coin for at least one year after the initial Free distributions. We would evaluate at the end of the year and see how we would want to move forward.)
6. How much money/crypto we raise will determine how many women can receive the Free 30-day supply.
7. At a cost of $24, if we raise $24,000 we can send a Free sample to 1,000 women. ($24,000 / $24 = 1,000) If we raise, $2,400,000 we can send the product to 100,000 women. And finally, if we raise $24,000,000 we can send the product to 1,000,000 women.
8. We would of course have the coins in escrow, with varying funds released as we reach different milestones.

OK, that's a broad overview of the idea.

1. Yes, we know that every merchant on the planet would say that they want to accept as many payment forms as possible. This is why no merchant is doing this, or will be doing it any time soon. (Until at least we prove the model successful!)
2. Virtually overnight, 100,000 to 1,000,000 people would be buying and using the chosen coin, Every Month!

So here are the questions:

1. If 1,000,000 people were using a coin every month, would/should the coin go up in value?
2. Would this be enticing enough to get "investors"/purchasers to participate?

With the above model, we don't have to worry about SEC or other governing boards, since all we're doing is selling a product.

This would be available to ALL investors in the US even if they're not accredited or sophisticated!

I read a post on Medium that referenced that even Vitalik said that companies should consider just raising funds in crypto as opposed to issuing tokens.

Any and all thoughts would be appreciated. I'll try to follow this thread as best I can to offer any clarifications.

Thanks!