One of the reasons why I find Prosper.com appealing dawned on me this morning. It’s not a good reason, but I’m not so sure it’s bad, either .Â It’s probably just a feature of their business model. The fact of the matter is that Prosper is just fun.Â Here’s why:
- The Human Connection. You get a picture and story of the person you are helping.
- Daily Gains. Unlike mutual funds which can go up and down, you can see your Total Account Value grow each day. This is a huge motivational factor for me. Right now I’m just getting little over $1 a day in this area, but psychologically a $10 a day growth would feel like a lot of freedom.
- Reinvesting the Gains. It’s a very good feeling to see that enough people have paid you to make yet another loan. In 6 months, my Total Account Value has grown by $125, so I’ve been able to make two extra loans on just the interest.
- The Gains Themselves. I choose to take on a lot more risk than many might. That’s just part of my nature. So when I’m making an average of 20+% on the money lent, it feels like I’m beating the system. It is a lot of fun to expand that growth rate with a calculator. Logically, I know I’m not going to get that when risk is factored in, but that doesn’t kill the fun factor for me. Even when I factor the risk in and look at it logically, it seems like a good deal.