Thursday, November 12, 2009

Viral Capitalism

What is Viral Capitalism?

Viral Capitalism is a new business model made to maximise efficiencies, growth and profits by rewarding customers and employees with common shares to become shareholders of a corporation. The premice is that outsized returns are possible by enlisting customers and employees in an equal weight basis with existing shareholders.

Technically profits go to the shareholders - but an amount of common shares equal to 1/2 of the profits gets split equally 50-50 between employees and customers. The profits can be calculated on a period ranging from monthly to annual.

Example - PDQ Company trading at a daily weighted average of $10.00 per share makes $.80 profit for the year the profits are attributable to the company and may be paid in part to the shareholders as a dividend. 50% of the value of the profits or $.40 is divided between the employees and customers 50-50 or $.20 worth of shares each. This would be a 4% dilution to the shares of the company and give the customers and the employees each a little less than 2% of the company. The value of the shares should be determined as the daily average closing price for a period of time that the profits are calculated on.

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