Monthly Expense / Profit Splits - Complex Examples
Here are some more Complex examples of how Habitats for Happiness may choose to generate monthly profits using DomeGaia workshops:
Example #4: Profitability GroupsSuppose there are 10 members and 4 interns/volunteers in the Center who decide to build a Community Dome one month & run a workshop to get it done.
The Project team decides to run the Workshop as its own Profitability Group, meaning that: The members of the Project team Agree that all profit / losses created by the Project will be kept within the team executing the project (which limits the scope of the Advice Process for financials to within the team). They also agree that the meal preparation will be part of the Project Group (not a separate subgroup) and that it is fair for tent camping fees to be payable directly to the Center. |
Assuming:
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The Project Team’s total income comes out to: $1200*70%*30 + ($400) * 15 = $31,200
Their total expenditures come out to: $50*100*2 leadership + $30*80*2 cooking + $25*120 assistance + $2500 (materials) + $1500 (food costs) = $21,800
The Project’s net profit comes out to: $21,200 - $21,800 = $9,400, which they split amongst the 5 members of the team for bonuses of $1,880 each. Note that if they had overrun their budget by paying themselves too much or having to put in more hours than expected, they might have had a loss that would be deducted from their final pay. This creates an intrinsic motive for Project Teams to estimate their probable Profitability as accurately as possible (without going over).
Their total expenditures come out to: $50*100*2 leadership + $30*80*2 cooking + $25*120 assistance + $2500 (materials) + $1500 (food costs) = $21,800
The Project’s net profit comes out to: $21,200 - $21,800 = $9,400, which they split amongst the 5 members of the team for bonuses of $1,880 each. Note that if they had overrun their budget by paying themselves too much or having to put in more hours than expected, they might have had a loss that would be deducted from their final pay. This creates an intrinsic motive for Project Teams to estimate their probable Profitability as accurately as possible (without going over).
As for the Center, they not only got a nice new Community Building, they are received $200/person in camping fees, so their monthly bills went from:
$3,000 fixed monthly expenses - $200 camping fees*15 campers = $0… Nobody needs to make a Cash Contribution this month… they basically got to live there for free; their mortgage was paid for by Camping Fees associated with the workshop. |
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Example #5 for Centers which do Meal-Sharing
Extending the possibilities even farther, another likely real-world scenario is:
A particular Habitats for Happiness engages in Meal Sharing 5 times/week. 4 days/week a couple of members take turns cooking for the entire community (10 people + 4 volunteers). There’s a signup list for upcoming meals so they know how many people to cook for. On Sundays there is a big potluck that everyone is free to join.
The normal food costs for these 4 group meals is $140/week + 12 hours/week labor at $25/hr. |
The Center's normal monthly expenses are therefore $3000 + ($140 +12*25)*52/12 = $4900 /month… except: Volunteers pay for their own room and board: their meal cost / month is $135 each & their housing costs are estimated at $215/month ($350 total), which reduces the Center's net monthly expenses to $4900 - ($350)*4 = $3500 (or $350/month for each of the 10 members). Note that the fact that Volunteers and Community members have the same estimated monthly expenses implies that everyone's expenses are being calculated correctly.
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One month, the 10 members decide to build a Community Dome. The Project is run as its own Profitability Group, meaning that: The members of the Project Agree that all profit / losses created by the Project will be kept within the team executing the project (which limits the scope of the Advice Process for financials to within the team).
They & the Center also agree that Meal Fees will be paid directly to the Center, and a separate group (of the ordinary cooks + an assistant) organizes to handle the cooking. Everyone also agrees that it is fair for tent camping fees to be payable directly to the Center. Assuming:
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The Project Team’s total income comes out to: $1200*70%*30 = $25,200
Their total expenses come out to: $50*100*2 + $25*120 + $2500 (materials) = $15,500 The Project’s net profit comes out to: $25,200 - $15,500 = $9,700, which they split amongst the 3 members of the team for bonuses of $3,233 each. Again: if they had overrun their budget by paying themselves too much or having to put in more hours than expected, they might have had a loss that would be deducted from their pay. This creates an intrinsic motive for Project Teams to estimate their probable Profitability as accurately as possible (without going over).
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What about meals? Well, several of the people who usually cook formed their own Project Team to cover the meals. Using the Advice Process, they decided that the meal team SHOULD NOT be its own Profitability Group because members of the Center might want to partake in meals too during the workshop.
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As for the Center, it not only got a nice new Community Building, it also received $200/person in camping fees, free meals for 10 days, and a little profit on the meal plan, so their monthly net that month changes from each member having to pay $350 to live there to receiving a Profit-sharing check for $110 instead.
As a group, Habitats for Happiness are free to do whatever they want with their profits. The community members might alternatively decide to establish cash reserves, project funding pools, and/or buy back land purchase investment capital with any such profits.
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Summary
Note the checks & balances in play here:
Members of the Habitats for Happiness have the option to engage in any type of work that interests them so long as they are able to cover their Monthly Dues. They can hold jobs off the land or contribute labor on the land. They may even have home businesses (the establishment of which would invoke the Advice Process to ensure everyone's comfort).
Subject to each Center's specific choices & guidelines, groups within the community can form and set up as their own Profitability Groups, which may receive bonuses for coming in under budget, but are also committed to deducting losses from their pay if they go over budget… this drives internal checking of payscales and time accounting. There is therefore an incentive to run Projects as their own Profitability Group unless the team finds it likely that they will take a loss. In those cases, the entire Center is affected and must therefore approve / disapprove the project on the basis of whether the expected loss is worth the benefit to the Center. They are likely to invoke the power of group thought and creative problem solving to minimize the anticipated loss, or perhaps refuse the project if it seems not worth it…
If a situation arises where community members are long on time and short on cash, they have DomeGaia's support & the ability to access the DomeGaia business model of hosting workshops to convert their free time into substantial cash. DomeGaia supplies the clients in exchange for a 30% Commission, and intends to expand the types of workshops they offer to other earth-friendly topics according to the expertise brought by Members of the New Paradigm Centers.
Members of the Habitats for Happiness have the option to engage in any type of work that interests them so long as they are able to cover their Monthly Dues. They can hold jobs off the land or contribute labor on the land. They may even have home businesses (the establishment of which would invoke the Advice Process to ensure everyone's comfort).
Subject to each Center's specific choices & guidelines, groups within the community can form and set up as their own Profitability Groups, which may receive bonuses for coming in under budget, but are also committed to deducting losses from their pay if they go over budget… this drives internal checking of payscales and time accounting. There is therefore an incentive to run Projects as their own Profitability Group unless the team finds it likely that they will take a loss. In those cases, the entire Center is affected and must therefore approve / disapprove the project on the basis of whether the expected loss is worth the benefit to the Center. They are likely to invoke the power of group thought and creative problem solving to minimize the anticipated loss, or perhaps refuse the project if it seems not worth it…
If a situation arises where community members are long on time and short on cash, they have DomeGaia's support & the ability to access the DomeGaia business model of hosting workshops to convert their free time into substantial cash. DomeGaia supplies the clients in exchange for a 30% Commission, and intends to expand the types of workshops they offer to other earth-friendly topics according to the expertise brought by Members of the New Paradigm Centers.