Data modelling

Data modelling some example organisations to showcase how different parameters could be used and how they might impact an organisation

The following data models apply some of the contributionist concepts and most of the suggested operating parameters. These models include a simplified example of contribution tables and loans.

These example data models are provided to explore some simple implementations of contributionism across different types of organisation. These models are just basic examples. It should be expected that the parameters and approaches used for these models will evolve and be updated over time.

The current data models can be found here -https://docs.google.com/spreadsheets/d/1XasP4CGMToaDjvrL0S-T8NUE20WeTgNQPN_P31PH3xs

Novel product

The novel product example looks to show an organisation that goes through large employee growth and large revenue growth. This is then used to see how early contributors are rewarded compared to others and then to compare contributors who stay at the organisation for different periods of time. A large dividend is distributed to the contributors due to the organisation's success. This example helps to show that a highly profitable business can lead to contributors receiving a larger return on investment than their market rates. Some overview details:

• Workers: Starts with 4, ends with 314.

• Revenue: Starts with $0 annually, ends with $139,000,000.

• Risk: 10/10, product has never been created before.

• Complexity: 8/10, product is complex and no existing examples, required capital investment loan to get started.

SaaS

A SaaS product example looks to show an organisation with modest growth but that made a choice to slowly expand headcount and eventually achieve market rates for those that are working in the organisation. This example helps to highlight the impact of unpaid income over a longer period of time contributing towards a higher contribution value that might not get paid until further into the future. The early contributors chose to bring in more workers than repay their own unpaid salaries and this translated into a large contribution value in the later years that had still not been paid due to a lack of income repayment and dividends. This example highlights the importance of organisations being able to decide when they want to do the unpaid income repayments and the importance that early contributions are sufficiently rewarded in the long term when the organisation is ready to pay for those contributions. The reward multipliers are an important part of making it fair for contributors that took the risk in the earlier stages of the organisation. This risk translated into more governance and incentive rights for those contributors. Another thing this example highlights is the importance that early contributors don’t lose their governance and incentive rights in the short term and that they persist until they have been fairly rewarded for their contributions. Some overview details:

• Workers: Starts with 2, ends with 9

• Revenue: Starts with $16,000, ends with $1,030,000

• Risk: 6/10, Moderate risk but also a lot of other example companies who have done similar business models.

• Complexity: 7/10, Software startups are fairly complex and require a high level of skill and expertise across different domain areas.

Clothing producer

The clothing company example shows a fairly fast growth company that repays all of its unpaid income and then by the end it starts to distribute contribution dividends to reward historical contributions. This example helps to show the high contribution value of the first few years of contribution where the initial contributions start to become increasingly rewarded over time as the organisation grows and is able to start paying contribution dividends. The annual average compensation for the early contributors such as Alice would keep increasing in subsequent years due to the higher contribution value that was historically established. One thing that might be important for this organisation is a leadership contract so that Alice can operate the business how she would prefer until a fixed date in the future. This approach could be fair due to the large risk that Alice took in the first few years by herself where only partial payment was received. Some overview details:

• Workers: Starts with 1, ends with 20

• Revenue: Starts with $0, ends with $2,590,000

• Risk: 6/10, Moderate risk as it is often a competitive market and often requires the development of a strong brand image to attract and retain consumers.

• Complexity: 5/10, Moderate complexity with handling distribution, online administration and marketing at different scales as the organisation grows.

Marketing agency

The marketing agency example shows an organisation that immediately starts making a modest amount of revenue and that moderately grows over time. The example helps to show that the early contributions and a small team can lead to the early contributors naturally having a large amount of governance and incentive rights within the organisation. In this example Alice and Bob have a majority influence in the organisation from start to finish due to the initial years of contribution effort they made. This organisation also shows a more mild impact from the startup reward due to the organisation being easier to set up in a market that had already proven demand. The startup reward multiplier still helps to ensure that their efforts to startup the agency are rewarded over the long term. Some overview details:

• Workers: Starts with 2, ends with 6

• Revenue: Starts with $165,000, ends with $790,000

• Risk: 4/10, Fairly low risk as it is a very similar business model to what exists in the market and there is proven demand for this type of marketing work.

• Complexity: 6/10, Moderate complexity as the most effective marketing approaches and skills needed can often change over time.

Restaurant

The restaurant example helps to explore an organisation with a lower startup reward multiplier due to moderate risk and lower complexity. It maintains modest salaries and bonuses throughout and moderate revenue growth. This example helps to show an organisation that might never go above the market rates due to its limitations in what revenue it can achieve in the market that it operates. Dividends are not being rewarded due to the financials of the organisation. In these situations it highlights the importance of getting the salary and any bonus measurements as accurate as possible for all workers involved in the organisation as there is no guarantee that the organisation will generate more than the workers agreed rate salaries over the long term. Some overview details:

• Workers: Starts with 3, ends with 5

• Revenue: Starts with $200,000, ends with $427,000

• Risk: 6/10, Moderate risk as it’s a competitive market but not excessive risk as there is proven demand and good footfall in the area that the restaurant operates.

• Complexity: 3/10, Food being offered is not complex to make once the business is set up and many people could be trained to operate the business. Some complexity in starting and operating the business admin efforts.