Many details still to be figured out, and, admittedly, it is an experiment! We will learn as we go. There will be growing pains. There will be some trial and error. But here are the initial thoughts:
- These "Starter Startups" are not intended to require anyone's full-time efforts at the beginning. If/when the time comes that one (or some!) of them begin to require full-time efforts, each team will decide how to handle that (but the unofficial motto is "Nobody gets screwed / Nobody screws anyone")...
- One goal is for as many team members as possible to be working on things that they have already gained experience/expertise in while working/learning on someone else's dime... Example: At your [real job / other startup / corporate gig / whatever], you spent weeks/months/longer gaining experience/expertise in [Digital Marketing, Social Media Management, Web Design / Graphic Design, Google Analytics & SEO, Shopify or Wordpress, Shipping & Logistics, MailChimp and Re-Marketing, etc.]. There won't be a learning curve - you are now better (and significantly faster!) than 99% of people at [whatever] - so you can accomplish in a day.
- Compensation is PROFIT-SHARING - for each individual product or business unit (or collection of products / business units), something like:
60% of profits divided evenly among team members
(5% each if there are 12 team members, 6% each if there are 10 team members, 10% each if there are 6 team members, 12% each if there are 5 team members, etc.)
30% to The Whatever Network
10% TBD - But I have some interesting thoughts on this which include some creative forms of compensation/incentive for some key strategic partners
- Profits are different than revenue (with profits defined as revenue minus expenses).
- Profits are different than equity as we will not (initially) be spending the time or money to break each individual "Starter Startup" product / business unit into a separate LLC.
- We will decide (as a team? with legal/accounting guidance?) at what point that makes sense (product-market fit? viral traction? $50k in profits? $100k in revenue? etc.)
- *Evenly is the default distribution. Any changes to that (ex: a Webmaster putting in much more time than anticipated) are voted on by the team. ALL KEY DECISIONS, by default, will be voted on by team members with simple majority rule. Only in the event of a deadlock does the "The Whatever Network" vote carry any more weight than any other vote - it would serve as the tie-breaker.
MORE INFO COMING SOON, but contact us ASAP if you might be interested in participating!
Random thoughts in progress:
Step 1: As of Day 1, The Whatever Network owns 100% and reviews interest forms / applications from interested team members...
Step 2: Preliminary team is selected and everyone is informed of who the others are, proposed roles, etc.
Step 3: Some to-be-determined amount of time later (no less than one get-together where everyone can meet each other? / no more than 30 days?), everyone emails the "Starter Startups" organizer (hopefully Jeff has an Assistant and/or Program Manager by then!) to confirm they are in and/or to raise any concerns about any team members or any strategic plans that have been discussed during the prior meeting(s).
Step 4: Team is finalized and everyone has their profit-share activated. Case by case basis (and agreed to by majority), but tentative plan is for any profits to be distributed after each quarter? Everyone receives their profit share for as long as they have "minimum active status" (which may vary by position - 1 hour/day? X hours/week? XX hours/month? TBD)