We anticipate a loss in both 2020 and 2021 and a profit of $3.7M in 2022, $13.5M in 2023, and $50M in 2024. Using a distributed network, stakeholder driven model, our goal will be to distribute the proceeds of the growth -- and increased value of the platform -- to stakeholders based on contribution.
For example, based on the growth model from the previous section, the table below shows how each stakeholder contributed directly to the number of new hubs created:
| Role | Hubs | Percent |
| Staff | 9,600 | 21.86% |
| Users | 11,946 | 27.20% |
| Creators | 10,392 | 23.66% |
| Curators | 520 | 1.18% |
| Ambassadors | 11,460 | 26.09% |
We've built a model based on "slicing pie" that rewards stakeholders for their actions in any given year through compensation (example: creators earn money for referring new subscribers; ambassadors receive a portion of paid hubs) + "units" in a trust fund that will grow in value over time - similar to equity.
Once we achieve profitability, we will use the following model, incorporated into our company by-laws:
| Revenue % | Used for |
| 40% | Operations (including staff) |
| 20 - 30% | Stakeholder compensation (ambassadors, creators, curators) |
| 13% | Retained for cashflow, R&D, social investments |
| 0 - 5% | Returned to investors |
| 12 - 27% | Transferred to Trust Fund |
Transferring profit to a trust fund acts very similar to equity in a traditional tech startup.
The Guides.co Trust Fund
Trust fund unit allocation is based on a "slicing pie" model recognizing that the value stakeholders contribute increases over time as the size of the platform grows.
How it works
Each year there are 1,000,000 fund "units" created based on the following allocation:
| Type | Calculation | Percent |
| Investors | Divided by outstanding shares | 5% |
| Employees | Determined by weighted contribution | 20% |
| Governance | Divided equally by # of active board members | 2% |
| Curators | Based on # of net new guides, users, hubs, & creators | 3% |
| Creators | Based on # of active subscribers | 40% |
| Ambassadors | Based on # of net new users & hubs | 30% |
Each unit is worth the total funds in the trust divided by the outstanding units. Similar to equity in a company, as the fund grows, the unit value increases (as each year the same number of units are created) as will the size of the network / number of people receiving allocations. Therefore, earlier participants will receive a larger share of units which will increase in value over time.
For example, the ambassador role is allocated 300,000 units every year. Each ambassador receives units based on the number of new users and hubs referred by them, divided by the total number of users generated by all ambassadors. Assuming there were 180 ambassadors in 2020 that all contributed a similar number of new hubs, each ambassador will receive 1,648 units (300,000/180). However, in 2022 there are many more ambassadors (say 850) so each ambassador would only receive 353 units (300,000/850). Therefore, you acquire more "units" earlier when the network is smaller and recruiting new members is harder. Assuming the fund grows in total value, this is how this scenario would play out for an individual ambassador who contributes an equal amount each year:
| Total Unit Value | ||||||||
| % | Units | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
| 2020 | 0.005 | 1,735 | $0 | $0 | $511 | $5,602 | $20,248 | $63,008 |
| 2021 | 0.003 | 960 | $0 | $282 | $3,099 | $11,201 | $34,855 | |
| 2022 | 0.002 | 755 | $222 | $2,439 | $8,816 | $27,434 | ||
| 2023 | 0.002 | 596 | $1,924 | $6,953 | $21,637 | |||
| 2024 | 0.001 | 470 | $5,484 | $17,065 | ||||
| 2025 | 0.001 | 371 | $13,459 | |||||
| TOTAL | 4,887 | $0 | $0 | $1,015 | $13,063 | $52,703 | $177,458 | |
Similar to equity, the value of each unit increases over time, and the earlier someone participates, the lower the "price" per unit.
Unlike current models where most of the value (equity) in a company is concentrated among a small number of founders, investors, and early employees, this model distributes the value among all stakeholders, while still recognizing the increased value and investment risk of early participants.