Think angel investor. This type of delegator targets a stake pool with less than 100k active stake. Unless marketing goes really well this pool is not going to be minting very many if any blocks. Matter of fact this pool has very likely never minted a block. This is a creation type investor; it’s not about the return at all (which will be small if any) and it is all about helping create a new pool in the ecosystem.
Think venture capitalist. This type of delegator targets a stake pool from 100k to 1M active stake. The pool has most likely already minted their first block and has a group of delegators. They can be a luck play where the small stake size and high luck will lead to a few epochs over 5% annualized returns. This is not helping create a new pool, but it is ground level to help a stake pool succeed. This is also a risk here as the pool will not be able to mint blocks every epoch. The pool might go a long stretch without minting at all. This means you will not get any return on your delegation during these dry spells.
Small Business Delegation:
Think shop small, shop local. This type of delegator targets a single stake pool from 1M – 20M active stake. They will be consistently minting blocks. You will get on average a smaller return than an investment delegation but you are helping the small pool operators and many times some of the proceeds go to a good cause.
Think of buying stock in a public company. This type of delegator targets an active stake pool with 20M+ active stake. Managed correctly you are going to get a steady 5% return on your money. A solid choice to stake your ADA in the long term and reap rewards.
Not sure how to evaluate a stake pool?
Here are 2 great sites that you can lookup all the details about a stake pool: