This page discusses all things related to money including how this initiative will be funded, how sweat equity will be earned, and how members will be compensated.
Funding will be raised through clients that wish to purchase equity shares. Also, we will seek crowdfunding. We will not be seeking funding from venture capitalists.
Client Funding: Empowering Mutual Success
Client funding represents an integral part of our equity structure, fostering a collaborative partnership with our clients. Funds contributed by clients will serve two primary purposes:
Equity Funds: Clients contributing funds to expand the platform will directly impact the cooperative's growth and value, representing equity funds that strengthen the foundation of our organization.
Project Funds: Additionally, clients will contribute funds specifically for their application development, data conversion, and ongoing support services. These funds will not contribute to equity but will be utilized to create tailored solutions that address their unique needs.
Crowdfunding: Embracing Community Support
Our cooperative thrives on community support, and crowdfunding plays a significant role in driving our mission forward. Contributions from supporters who share our vision and purpose will fuel the formation of the organization and the development of essential tools, such as the application framework, data dictionary tool, and AI resources. These funds will empower us to operate effectively and create a lasting impact in the tech industry.
Sweat equity stands at the heart of our cooperative, valuing the dedication and effort invested by our members in shaping our vision and driving our initiatives forward. To ensure equitable compensation, we have developed a tiered approach that acknowledges the varying levels of risk and commitment associated with different stages of our cooperative's journey:
Stage 1: This stage refers to the effort related to developing the groundwork for this initiative including designing, developing and documenting the platform. Hours related to this initiative will be compensated at a rate of 3 times the base rate.
Stage 2: We are currently at Stage 2, where founding members play a pivotal role in shaping the cooperative's future. Recognizing the risks associated with an initiative in its infancy, founding members will be compensated at 2 times the base rate, reflecting their commitment to our shared vision.
Stage 3: As we secure our first client and develop the initial framework, additional resources will be essential. Some members may choose to contribute without compensation, showing unwavering support for our cooperative. These individuals will be compensated at 1 times the base rate, recognizing their dedication to our mission.
Stage 4: As we progress and reach a critical mass, where risks are minimized, sweat equity compensation may be compensated on top of a member's base rate (e.g. member earns 10% of the base rate that goes toward shares).
A share compensation committee, comprising key stakeholders, will review and approve all hours for all stages. It will also finalize these compensation policies and determine the base rate. It will also make recommendations for distributing dividends regarding shares or reinvesting in the cooperative, subject to membership approval.
At any point, members have the right to purchase shares. Share purposes will be approved by a committee appointed by the membership.
At our cooperative, we are committed to transparency, fairness, and shared success. Our equity structure reflects these principles, ensuring that every member's contributions are recognized and valued. Together, we build a cooperative that empowers individuals and organizations alike, shaping a future where technology and collaboration drive unparalleled growth and innovation.
Members will earn a rate based on their role. Some principles for compensation are:
There will be an equitable difference between the highest-paid and lowest-paid resources in the company. Exceptions to this rule will need to be approved by the compensation committee.
Bonuses may be granted for resources that deliver projects on-time and on-budget. Also, bonuses may be granted to resources that attract new business or attract new funding.
Members have the option of purchasing more shared if they choose.
The compensation committee will establish a base rate by role.
All members will track activities.
Members will be primarily compensated with a wage rate.