[Slightly OT] Ransomware as a Model for Rev Toolmaking?
SimPLsol at aol.com
SimPLsol at aol.com
Tue Jul 19 16:48:29 EDT 2005
briany writes:
* Investors will have to put a lot more money up for the developer to
give up ownership of the product to the investors
* Multiple investors "owning" a product and dividing profits is a pain
(and not so lucrative)
... I don't think a 3rd party Rev product split too many ways
excites anyone just yet
Regarding point 1:
There is no reason why the developer can't be one of the investors. Lets
say the developer bids a 20,000 project and the investors agree to this
price. Three investors invest 5,000 each. The developer discounts his/her
contribution 5,000. Everyone has 5,000 invested and they all own 1/4 interest.
Right now the developer is generally fronting all of the development
costs and retaining total ownership. That is alright but some bigger projects
(brighter ideas) require more financing and this model accommodates it. Better
sometimes to own a smaller piece of a bigger pie.
With this idea the developer has the option of surrendering as much (and
only as much) interest in the project as he/she wants or can afford.
Regarding point 2:
Most of the most famous corporations in the world (General Motors,
Pfizer, Microsoft, Ford, Boeing, Nestle, etc.) use this model. Most large companies
are "owned" by many stockholders - and it seems to be working. Arguably, gov
ernments are "owned" by many taxpayers.
An option might be to limit the buyin price, say minimum investment of
1,000 or 10,000 or ? This would be variable by project. Another option is to
limit the number of investors - again, variable by project.
Regarding point 3
If the product fills a need at a reasonable price, why would the users
care how the profits are split?
This idea, if implemented properly, would make it easier to create new
products that are too big for individual developers and too small (or
unimportant) for the Mother Ship.
PL
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