Better Globe shares the profit from the trees.
Better Globe is a social entrepreneurship company that shares the profit from the trees with us customers. They use a crowd founded method to finance the business.
Since Better Globe is a profit-making company it is crucial that they can share the profits that the trees creates for you who owns the tree. Over a 20 year period the expected profit from one tree is € 208,25.
Just like all companies Better Globe need money to be able to run the operation. Therefore they use a crowd founded method where you get a dividend on your investment. You buy trees from Better Globe that plants, takes care and cuts down the trees after a 20 year period and share the profit. Everybody profits and is a win-win-win.
Even though many of us try to choose eco, shop environmentally labelled goods and try to make common wise and environmentally conscious choices, most of us haven’t thought of the power that our saved money actually have. Money creates and defines many ways the future that we actually want since the companies that get the money can develop and sell more products and services that corresponds with what the consumers want. Better Globe both want, and succeeded well, to be a ethic, sustainable and long-term alternative to traditional saving.
Expected profit from one tree.
When you buy a Better Globe tree for 17 Euros it is planted, taken care of, cut it down and you get a pre-decided profit for the trees you’ve bought. In all it’s simplicity it work like this:
Year 1: You buy the tree for € 17. The tree is planted and cared for.
Year 1-4: The tree is growing, there is nothing to harvest and you get no profit.
Year 5-19: The tree is in full production and you receive €2.55 for every tree per year in 15 years.
Year 20: The tree is cut down and you receive €170.
The illustration below shows the profit over time:
In summary the profit looks like this:
Year 1-4: € 0 profit
Year 5-19: 15 years x 2.55 = € 38,25
Year 20: € 170
Total = € 208,25
It’s important in this context to point out that there are no guarantees, it’s an expected profit and, just like all investments, there are a few risks. You can read about these risks here. Historically all profit has been paid to customers according to the module above every year since 2011 and everything is pointing to that Better Globe will keep these commitments even in the future.
Expected profit from a donation package
One donation package consists of:
Two trees that you own
Two trees that are given away
€ 1.50 to building schools
€ 1.50 to micro-loan operation
500 litres of water
The profit from a donation package is double the profit from one tree, so it’s 2 x € 208,25 = € 416,50 over the same 20 year period. In percentage the profit becomes a little lower since the donation package costs € 53, but considering all the good that the donation package provides we think it’s a fairly cheap price.
Your expected profit from the trees during 20 years of repurchase
Our best tips: regularly savings. Customers that regularly saves in both donation packages and trees every year are even rewarded for this.