For sure it is always risky to invest such a huge amount on internet.. no matter on what you are investing them... that is why i also feel investing them in a real life business would be much better because there you can control your money yourself but on internet others will do that...
If you invest in a certain business in your local area, yes, you'll surely be able to keep an eye on what's happening, but such an investment takes many years to pay off.
Why would you spend so much time into a business that might have some potential right now, but doesn't guarantee you that it stays like that for many more years.
We're living in an economy that is changing faster than every before. Something that is cool and smooth this year, can be something that is making you lose money the next year.
It's not for nothing that a lot businesses have gone down in the last 5 years. Competition is very intense. If you can't shape your business to what people want, or don't spot it on time, then it's over.
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Someone should keep those points in mind before starting a business for sure if he really wants his business to pay off very well even after years.
He should do some research that what businesses are liked the most by the people in the area he is going to start his business and which businesses have failed in last few months and he should avoid going towards that subject.