How to Start an Online Investment Club

Investment clubs allow a group of people each with limited funds to pool their money to invest. These clubs may buy stocks or real estate. They also may invest in entrepreneurial ventures. Starting an online investment club is a new way to connect with people who are interested in creating shared wealth.

Difficulty: Moderate

Instructions

1. Put out feelers among people you know. Those you know well do not need any level of investment knowledge, but they should be willing to learn.

2. Determine how the group will run. Investment clubs are serious because everyone's money is involved. Create a legal structure for the group and create by-laws. These by-laws should address contributions, withdrawals, delinquencies, membership and other key issues.

3. Hold an informational meeting. Once you have enough members who have expressed interest, get everyone together through a conference call or instant messaging program to ask questions and cover the basics of the club.

4. Set up a secured website with a private forum for group members to communicate. This site must include information about the current investments, including links to company websites.

5. Get agreement from people who want to join. Make sure everyone who decides to join agrees with the by-laws. Get appropriate forms signed and start investing.

Tips & Warnings

• Because money is involved, conflicts can arise. Be prepared to deal with these issues online or in phone conversations if necessary.