Showing posts with label What is Viral Capitalism?. Show all posts
Showing posts with label What is Viral Capitalism?. Show all posts

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.