[HN Gopher] Ask HN: Has anyone tried alternative company models ...
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       Ask HN: Has anyone tried alternative company models (like a co-op)
       for SaaS?
        
       Long story short, I'm building a new product and will likely launch
       it as a yearly SaaS with a permissive license. I'm later in my
       career and am mostly building it for fun, but I think it has
       potential to be a good, small business that I'd have fun fiddling
       with for a long time.  I went through and set up the usual LLC, but
       was curious about how I could set it up to be a member or worker-
       owned company. Has anyone done anything like that from the
       beginning? Should I just worry about this later?  With licensing,
       the typical model has been to make your core permissive, and keep
       the hosting / billing application private. Has anyone made even
       that part of their SaaS open? I know that would make is really easy
       to fork the business, but was thinking something like a time-gated
       Functional Source License (FSL) might work?  I'm open to ideas. I
       don't see this discussed commonly on HN, so figured it was a good
       topic.
        
       Author : snide
       Score  : 135 points
       Date   : 2025-01-18 14:05 UTC (8 hours ago)
        
       | cranberryturkey wrote:
       | I met some guys a decade ago at a tech meetup in silicon valley
       | who did this. they all contributed like 5% and got themselves
       | healthcare/dental and other benefits.
        
       | fredtalty5 wrote:
       | Interesting idea! Co-ops for SaaS are rare but possible. Some
       | groups pool resources for benefits like healthcare. For open-
       | source, a time-gated license like FSL could work, but it risks
       | forking. Maybe focus on the product first, then revisit the
       | structure later.
        
       | monodeldiablo wrote:
       | Reach out to the NWCDC (https://nwcdc.coop/) or NCBA
       | (https://ncbaclusa.coop/) for resources on how to draft bylaws
       | and structure a worker-owned business that meets your needs. In
       | my experience, they're extremely passionate, knowledgeable and
       | helpful.
        
         | snide wrote:
         | Thanks. I didn't know about either of these groups.
        
       | johnobrien1010 wrote:
       | I haven't done it but it looks like an ESOP something you might
       | to look into.
        
       | ripped_britches wrote:
       | You can always change it, so I would focus on not letting your
       | product idea die until it's on good footing. Then consult with
       | some folks who have done this before.
        
       | zeroCalories wrote:
       | Why can't you just give your employees equity? If you want to
       | make sure people have have ownership of their work that's a well
       | understood model.
        
         | snide wrote:
         | This gets difficult as more employees join. Typically companies
         | set aside a portion initially, and then keep splitting that
         | portion.
         | 
         | There are consumer-owner / member-owned co-ops where the people
         | that purchase the service (say in a yearly subscription) end up
         | as owners.
        
           | luckylion wrote:
           | The purchase price usually doesn't get you ownership though,
           | you buy shares (or whatever their equivalent name is) to
           | become a member, which then entitles you to buy the services
           | they offer.
        
           | zeroCalories wrote:
           | How many people do you expect to join? Are you trying to
           | solve a problem you'll never have? Even if you run out of
           | shares you can always dilute your existing shares to add more
           | people.
        
       | perfmode wrote:
       | I established a limited liability company (LLC) for a business
       | venture initiated with friends. My objective was to ensure that
       | all contributors received a fair share of the equity while
       | maintaining a simplified structure for tax purposes.
       | Additionally, I wanted to ensure that equity shares did not
       | confer voting rights, functioning instead as profit-sharing
       | interests. Legal counsel assisted in structuring the entity as a
       | single-member LLC, where I am the sole owner, with profit-sharing
       | units allocated to other contributors. This arrangement entitles
       | contributors to a defined percentage of the company's profits and
       | proceeds from events such as a sale of the company.
       | 
       | My only regret is that I spent a lot of money on legal fees and
       | the company ended up not being profitable so a lot of the work
       | went to waste. But now I can re-use the structure again if I wish
       | to create a new venture.
        
         | snide wrote:
         | That's interesting, but I was thinking something possibly even
         | farther. That the members of the co-op are the people that pay
         | for the SaaS itself. Essentially the yearly fee is "dues"
         | towards the organization.
        
           | pplante wrote:
           | So you mean a customer? Why do you want them to own it? Just
           | open source it if you want to share without building a
           | business.
        
             | snide wrote:
             | Open source just gives away the code, without setting up
             | resources for the people who work on it. If I charge for
             | the service, which is owned by the members, I could
             | presumably pay upkeep (hosting, dedicated workers...etc).
             | 
             | As far as I know this is how places like REI or some
             | groceries work. They are essentially customer owned. I'm
             | not an expert in this, which is why I was asking for
             | advice.
        
               | lotsofpulp wrote:
               | >As far as I know this is how places like REI or some
               | groceries work. They are essentially customer owned. I'm
               | not an expert in this, which is why I was asking for
               | advice.
               | 
               | I wouldn't say they work well, though, given the state of
               | REI and grocery customer cooperatives.
        
               | waldothedog wrote:
               | I don't believe this is a great representation of REI. My
               | understanding of REI, as a member, is that rather than
               | holding shares, I receive a dividend relative to what I
               | spend in each year, and I have access to certain perks,
               | but I cannot elect board members and I cannot earn any
               | additional power through working or volunteering labor
               | for the organization
        
               | my_username_is_ wrote:
               | REI Board elections are open to all members. In the last
               | election the REI union recommended not voting for all of
               | the incumbent board members due to their hostility
               | towards the union.
               | 
               | However I believe the board nomination process used to be
               | open, but now only board members can nominate people for
               | a board seat
        
               | ericholscher wrote:
               | This is a beautiful vision, but I think it would be hard
               | implement in practice. I'm trying to imagine how a pitch
               | like this might work. Do you offer the customer/members
               | some kind of profit sharing? A discount on future
               | services?
               | 
               | Given that customers often want to avoid lock-in on any
               | purchasing decision, it seems hard to build a service
               | that has a larger up front psychological and legal
               | commitment. I love the idea of getting bonus points in
               | life for building structures with collaborative
               | ownership, but realistically most people and businesses
               | only want a simple "buy a service that I can cancel"
               | relationship.
               | 
               | That said, I'd love to see someone try it! I think it
               | could work well in a niche environment, or something like
               | a Kickstarter where people feel they helped bring
               | something into being.
        
               | jackthetab wrote:
               | I think my (and other) Community Supported Agriculture
               | (CSA) farms would disagree with you.
               | 
               | I buy shares in the farm per my needs. The CSA takes my
               | money and buys seeds, fertilizer, etc. I get discounted
               | (100% :-) products from them throughout the growing
               | season. They also sell their goods at farmers' markets,
               | do deliveries, etc. My CSA has been growing for years.
               | They're a part of a larger co-op org that spans the NE
               | US, IIUC.
               | 
               | So yes, the "beautiful vision" can be, and is,
               | implemented. Even in tech; I'm sure you've heard of
               | neighbors getting together and building their own local
               | networks because the local ISP won't service them.
        
               | ripitout wrote:
               | I love it when tech people are like "this isn't remotely
               | possible", and it's like... happening at the farmer's
               | market already lol.
        
               | albedoa wrote:
               | And credit unions, and mutual insurance companies, and on
               | and on. I love this commenter who cannot imagine a
               | customer that has an ownership stake in a business or why
               | anyone would want that. No time to think, too much
               | uninformed posting to be done:
               | 
               | https://news.ycombinator.com/item?id=42748956
        
               | ripitout wrote:
               | This is exactly how Vanguard works.
        
               | waldothedog wrote:
               | The person directing you to the tech coop peer group is a
               | spot on. There are many ways of doing this, but IMHO it
               | ultimately comes down to writing bylaws for an
               | organization that dictate how resources are accumulated
               | and distributed, and evaluating the associated incentives
               | and dynamics generated by those rules.
        
             | PaulRobinson wrote:
             | Customer owned co-operatives are an established business
             | model. First one was founded in Rochdale, England, in 1844,
             | and is still operating today as a convenience chain called
             | simply "Co-op", across the UK.
             | 
             | The main advantage to this is that it gives customers
             | incentive to support the business financially, not just
             | take the assets. You can still have cashflows in way that
             | don't exist in open source models, and around products that
             | can't be open sourced (like loafs of bread, pints of milk,
             | as per the Co-op model).
        
           | mrtesthah wrote:
           | Technically this is a consumer cooperative rather than a
           | worker cooperative model.
           | 
           | But what you described truly is the most direct way to align
           | the interests of stakeholders/users with the direction of the
           | company/product. A downside I think in this case is that it
           | becomes even more imperative to know who your "customers"
           | are, as pivoting will be quite difficult.
        
         | ellisv wrote:
         | I wish more people know about profit sharing interests.
         | 
         | I was a part of a startup that offered profit sharing
         | interests. When I joined the profit was X and left it was Y. I
         | received a check for my percentage of the growth in profit. It
         | felt pretty fair.
         | 
         | There was a relatively direct incentive to impact the company
         | bottom line and I didn't have to wait for the company to exit
         | to get compensated.
        
           | stevage wrote:
           | Specifically, annual profit not valuation? So if the company
           | had not become more profitable, you get nothing?
        
       | mcbishop wrote:
       | I recommend the book: Reinventing the Organization. It has case
       | studies of alternative models around the world.
        
       | AndrewKemendo wrote:
       | I am co-founder of a residential trash collection cooperative:
       | seegull.org I started in 2022. Bought a trash truck last year and
       | we start picking up earnestly in May. We're both part time cause
       | we don't have enough business yet to be full time.
       | 
       | No two cooperatives operate exactly the same and you should think
       | about it more like a family than a business. It's not a purely
       | transactional thing I'm not keeping track of inflows and outflows
       | because I don't have anybody else to report to other than my
       | cofounder and we treat it like a family business.
       | 
       | Really the only thing you have to keep in mind is that the single
       | thing that makes you cooperative is that there is no distinction
       | between worker and owner.
       | 
       | Depending on your state there are some obscure tax codes that
       | make your org legally a "cooperative" but that doesn't really
       | mean anything because you'll be taxed on revenue like everyone
       | else
       | 
       | So you could set it up as an LLC and then within that LLC you run
       | it as equal distribution based on whatever the cooperative
       | agreement is between all the parties.
       | 
       | In our case there is no equity, there's no assignment of shares,
       | there's nothing to cash out. Revenue comes in and is used for
       | operations and then distributed to whomever did the work.
       | 
       | For a SaaS because capex is low you have a ton of options, but
       | again if people join your org who want to make money or get rich,
       | then the cooperative will eventually just turn into another
       | company.
       | 
       | One of our new marketing efforts is: we have a brief weekly ops
       | call that we're just sharing only two so far:
       | https://open.spotify.com/show/4jekdwCcjWKYJd7NSh6KlA?si=eFEI...
       | 
       | At the end of the day a cooperative is about creating an
       | alternative and equitable social group of mutually supportive
       | people, and the way you sustain it is secondary but important
       | 
       | If you start it as a money making enterprise then you will
       | eventually turn into fully into a money making enterprise
       | 
       | However if you start as a social group that has a reason for
       | existence more deeply rooted than financial gain, then you might
       | actually have something that survives.
        
         | myheartisinohio wrote:
         | Man, I love HN so much. This is really freaking cool. I have an
         | app idea related to cleaning up litter. This makes me want to
         | build it even more. Thanks for posting.
        
       | tnjm wrote:
       | I developed a SaaS business to fund a nonprofit foundation, which
       | is a little different from your situation.
       | 
       | The key thing was to keep the SaaS-y bit as boring as possible,
       | which meant a corporation. This is in Europe but the equivalent
       | would be Delaware C corp.
       | 
       | Shares in the corporation were then given to the wrapping
       | organization (in my case the foundation, but this could be more-
       | or-less any legal structure that can have assets). Downside is
       | two sets of accounts, upsides are that M&A gets a ton easier
       | later on, and taking on employees is simple and not colored by
       | the legal quirks of the parent organization. The potential
       | complexity of SaaS accounting (revenue recognition, R&D credits,
       | etc) is also kept inside a simple, normal corporation which every
       | CPA is super-familiar with, so you're not consulting niche
       | experts every time something new comes up.
       | 
       | I advise a quick consult with a tax lawyer before doing anything,
       | because it's easy to say you'll deal with this later but some
       | changes have unforeseen implications if not done at the outset.
       | (I punted on some of the setup for a year while I focused on
       | finding product/market fit, and that turned out to be a mistake
       | that the lawyers had to fix at some cost. A year more and it
       | might have become unfixable.)
        
       | pavlov wrote:
       | I think the co-op structure makes more sense if your business is
       | local.
       | 
       | For example, I'd love to have a local alternative to
       | Uber/Doordash that was a co-op owned by the drivers and the
       | customers together. 95% of my taxi trips and food delivery are
       | within my home town. I'd love to support a company owned by the
       | drivers who live here, instead of a massive multinational.
       | 
       | Co-ops are pretty successful in many European countries. In
       | Finland, both the largest bank and largest grocery store chain
       | are national co-ops owned by customers. It's a model that can
       | scale far, even though the big co-ops do develop internal
       | politics very similar to any traditional corporation.
        
         | throwawaysleep wrote:
         | I've heard of such models, but the problem is apparently
         | maintaining quality (from the people I know who have tried
         | this).
         | 
         | Drivers often need firing. How would a co-op approach that?
        
           | herrherrmann wrote:
           | "Drivers often need firing." - is that a given fact or would
           | a small coop perhaps do better selection and/or training of
           | drivers to create a high retention? This is a recurring
           | scheme of cooperatives as well: longevity and people-centric
           | thinking. While the standard business might toss out people
           | without thinking twice, coops might approach these kinds of
           | issues with more creativity and resourcefulness.
        
             | askafriend wrote:
             | If you don't have a large pool, you can't provide
             | convenience.
             | 
             | When I order an Uber, I want it now. I won't be waiting 1hr
             | for it.
        
               | yencabulator wrote:
               | As a counterpoint, living in a remote area, scheduling a
               | ride 1h in advance is a lot better than not having a ride
               | at all; that would be plenty to e.g. drop my car off at a
               | mechanic / pick it up, without begging for rides.
        
             | andrewflnr wrote:
             | > would a small coop perhaps do better selection and/or
             | training of drivers to create a high retention?
             | 
             | This is wishful thinking. They might _reduce_ the amount of
             | firings needed, but you can 't spot in advance _all_ the
             | people who will slack off or cause problems given the
             | chance. Not unless you 're a literal god.
        
               | herrherrmann wrote:
               | It's not just about hiring people who care to begin with,
               | but caring for the business is much more natural if
               | you're a co-owner and can directly benefit from the
               | organization's success. Compare that to the gig economy
               | where workers are worn down, paid as little as possible,
               | and thrown out at a whim. In worker-owned businesses,
               | workers are more motivated and more retained (there are
               | also studies around this, afaik).
        
               | yencabulator wrote:
               | That "caring" a coop member has gets prioritized after
               | addiction, health issues, family obligations, and so on.
               | 
               | You _still_ need a mechanism for dealing with workers
               | that e.g. just don 't show up. You also need that
               | mechanism for co-owners of an LLC, and so on.
        
               | andrewflnr wrote:
               | That literally does not address my point at all. By
               | including words like "more" rather than "always" you're
               | basically admitting that there are non-zero circumstances
               | where workers don't care or don't stay, which is all the
               | point I made. You could justifiably quibble with "often",
               | but you absolutely will not get away without a firing
               | process.
        
           | codingdave wrote:
           | > Drivers often need firing.
           | 
           | Do they? The taxi companies in my small tourist town don't
           | seem to have problems with reliable drivers. Makes me think
           | that there is a retention problem with Uber-style work
           | environments more than an inherent problem with people who
           | drive for a living.
        
             | Workaccount2 wrote:
             | Let me speak as someone who was a delivery driver for over
             | 10 years for an array of different restaurants.
             | 
             | With advent of ubiquitous GPS navigation came a wave of
             | some the dumbest most functionally inept people I have ever
             | encountered. There was a time when you had to be able to
             | read a map and plan routes. But as soon as GPS showed up,
             | anyone who could drive and enter and address in their phone
             | was good to go making way more than other high school
             | dropout work.
             | 
             | The biggest issue though is drug addicts. Lots and lots of
             | drug addicts. It's an easy money job that you can smoke
             | up/snort up/shoot up while doing. These guys are shameless
             | and will be high off their ass driving around.
        
         | herrherrmann wrote:
         | I agree with the idea of supporting local non-huge businesses
         | that still (need to) for their customers. But I think the coop
         | concept works for more spread-out organizations as well,
         | especially when it comes to digital services. As you mentioned,
         | some big organizations like banks and grocery stores (that
         | operate country-wide or even internationally) exist in Europe.
         | There are also remote-first design/tech cooperatives around.
        
         | Der_Einzige wrote:
         | Co-ops, employee owned businesses, and credit unions are
         | antithetical to American ruthless capitalist exploitation. They
         | are economically "inefficient" since they don't maximize the
         | exploitation of their customers.
         | 
         | Also, what good products do any of these groups make (besides
         | credit unions which are superior to traditional banks)? Sure I
         | can go to winco for cheap groceries, but REI isn't exactly the
         | bastion of quality that its buyers pretend it is (their stuff
         | is cheap crap).
         | 
         | The sad reality is that if you, the customer, want a good
         | product, you want the company who makes it to exploit its
         | workers. This is also the real reason why unions died in
         | America. All the US car companies are unionized and that
         | famously caused US company workers circa the late 70s and 80s
         | to be literally drunk/high on the job all the time (see
         | https://en.wikipedia.org/wiki/Fremont_Assembly) Meanwhile most
         | Japanese car factories aren't unionized, and you get literally
         | the most reliable and best fit/finish in the industry from
         | doing it.
        
           | spencerflem wrote:
           | Fwiw- REI is not a workers coop, it is owned by its customers
           | who have a say in the operation in proportion to how much
           | they spent. So in theory at least your interests are aligned.
           | 
           | I'll also add that if the excess profits are going to
           | shareholders than I do not care about the labor savings a
           | company gets by exploiting their workers.
        
       | myheartisinohio wrote:
       | You could give equity to those who contribute.
        
         | fisf wrote:
         | Equity is one thing. What really matters is voting rights.
        
         | TuringNYC wrote:
         | > You could give equity to those who contribute.
         | 
         | Once challenge with equity is that equity is the thing that is
         | left over after you've distributed income and benefits. I've
         | seen so many startups (some up-close) where those in charge are
         | not working for equity, they are extracting all the value in
         | the form of benefits and salary/bonus. The equity then ends up
         | just a carrot for those at the bottom being leveraged to keep
         | the cycle going.
         | 
         | Other misaligned incentives I've seen is company management
         | paying low salaries but having a host of family/friends placed
         | into figurehead wishy-washy roles in the company (again,
         | extracting value misaligned with employees.)
         | 
         | I've also seen doctors practices where the doctor owns the
         | facility and extracts above-market rents from the practice,
         | leaving less for workers.
         | 
         | Once a company is in hyper-growth it is easier to find well-
         | aligned incentives. However, before that, you really dont know
         | unless you can see the salary/benefits of everyone (which
         | obviously doesnt typically happen.)
        
       | yochaigal wrote:
       | I work at a worker-owned IT company that has offices in three
       | states and has been in existence for 20 years. We do not provide
       | any kind of SaaS service but I can assure you it is possible! My
       | suggestion is to reach out to the Tech Worker Coop Peer Network
       | for the USFWC:
       | 
       | https://www.usworker.coop/programs/peer-networks/
       | 
       | They will probably have ideas. Good luck!
       | 
       | PS an LLC is definitely a good way to go, but some states (e.g.
       | NY, MA, CA, MN, etc) have dedicated worker coop company types you
       | can create.
        
       | ericholscher wrote:
       | Hey Dave,
       | 
       | Glad you're still doing cool things :)
       | 
       | Read the Docs is pretty much all open source, including the
       | billing code (https://github.com/readthedocs/readthedocs.org/blob
       | /main/rea...), but we are structured like a normal company, with
       | some custom bylaws that protect the OSS codebase if ownership
       | changes hands. We haven't found anyone else setting up a
       | competing instance or anything, but that might also be because
       | the product is kind of niche.
       | 
       | I kinda love the idea of having people in the community that use
       | the service have some kind of ownership over the platform. It
       | would likely lead to longer term loyalty of the userbase, which
       | would help keep the project sustainable and avoid the
       | enshittification cycle.
       | 
       | We've played around with sharing ad revenue that we generate on
       | documentation pages split with the projects, which is partially a
       | win/win way of sharing in the upside of success.
       | 
       | Anyway, I don't have a great answer here, but wanted to say hi,
       | and give a bit of context from our place in the world.
       | 
       | PS: You might also talk with the folks here:
       | https://zebrasunite.coop/ -- they are structured like a co-op and
       | mostly come from the tech/design community.
        
         | snide wrote:
         | Hey Eric! I think of you whenever I open Python documentation
         | and see some of my old work!
         | 
         | That's good to know that at least I'm not crazy for also open
         | sourcing the billing code. I feel less worried.
        
       | hkt wrote:
       | I've looked at this for years, and have my (basically defunct)
       | attempt at it over at mutual.email - the idea was customer owned
       | email (+etc) service.
       | 
       | The main idea was to make a service covering people's "workspace"
       | needs (comms, documents, collaboration etc) which would place
       | things like data governance under end user control, mostly on the
       | assumption that given the choice, people would never agree to
       | having their data mined by eg, Google.
       | 
       | In practice I wasn't really ready for it, but doing this kind of
       | thing as a co-operative society with worker or member ownership
       | is a fabulous idea and one I'd love to see come to fruition.
       | 
       | A lot of the pitfalls I've seen from surveying not just my own
       | attempt but other people's is that getting your initial
       | collaborators on board is hard, and keeping a culture that
       | promotes change rather than stagnation is even harder. Lots of
       | coops in the email and hosting space show this: they'll sweat
       | hardware way past when it is economical or sensible to do so, and
       | are generally averse to raising cash to invest in the business.
       | Customers go to them and pay a premium because they want
       | something "ethical", which lets them off the hook for being
       | uncompetitive. The spiral continues, tightening until the service
       | is so poor and prices so high that literally nobody wants it
       | anymore. My suggestion is whatever you do, avoid that situation:
       | investment starvation kills coops.
        
       | ada1981 wrote:
       | I predict this will be the future for many industries.
       | 
       | Shifting to worker cooperatives and innovation on the business
       | ownership side.
       | 
       | Imagine Amazon as a coop?
        
         | prisenco wrote:
         | There's a lot of potential and precedence even if there isn't
         | much discussion. It's clear that while people may not always
         | like the market for needs like housing and healthcare, they
         | strongly prefer it for consumer goods and services. A
         | cooperative is a way to engage with the market without running
         | into the problems of large for-profit enterprises.
         | 
         | The hard parts are:
         | 
         | 1. capitalization - once you have investors who have more say
         | than employees, it's no longer very cooperative
         | 
         | 2. legal - the structures for for-profit or hierarchical non-
         | profits are well defined and there are any number of
         | experienced law firms that can help structure a business, while
         | for a cooperative not so much
         | 
         | 3. structural - there are a thousand books published every year
         | about for-profit businesses. There are comparatively few about
         | starting and running a cooperative. Although the latter have
         | more signal than the noise of the former.
         | 
         | These aren't insurmountable problems, though. They've been
         | solved before.
         | 
         | | _Amazon as a coop_
         | 
         | A cooperative Amazon would probably work best as a federation
         | of cooperatives.
        
       | herrherrmann wrote:
       | You might be interested in Subvert, a group of people (formerly?)
       | from Bandcamp that are now founding a worker-/artist-owned
       | version of Bandcamp and launching the platform soon. They
       | basically want to avoid running into the same issues that came
       | with Bandcamp's recent ownership changes and the instability and
       | worker-facing hostilities around it.
       | 
       | They also published a magazine explaining their thinking behind
       | the setup, etc. - you can find out more on their website:
       | https://subvert.fm/
       | 
       | Could be interesting to check out, even if just for inspiration
       | or fun.
        
       | greenie_beans wrote:
       | i'm trying to do this with https://bookhead.net and
       | https://sweetclay.net. i'm prototyping the coop with sweet clay
       | bc the business is a side hustle and good for experimenting. and
       | then i'll apply it to bookhead since that business has more
       | earning potential and i wanna get the membership stuff right
       | before risking that. setting up the legal stuff takes money that
       | i could use for other stuff that could maybe bring revenue, so
       | it's tricky situation, especially if you need labor asap. and it
       | takes time to research/design governance and equity etc.
       | 
       | i wish there was stripe atlas for coops if anybody would like to
       | start a new cooperative. i emailed the stripe PM asking for this
       | and they said it's not on their roadmap. businesses in america
       | are designed to be organized as capitalist enterprises so there
       | are some extra things a coop needs to do which takes time and
       | money.
       | 
       | would be cool to make an open source "stripe atlas for coops"
       | project and help other coops start up. i'm too busy right now but
       | could do the project if i had some collaborators. email me
       | sam@bookhead.net if you're interested in a project like this.
        
         | snide wrote:
         | Yes. That's essentially what I was looking for. A generic
         | playbook for something like this.
        
           | greenie_beans wrote:
           | see https://.start.coop and
           | https://www.democracyatwork.info/co_op_resources
           | 
           | and the work of nathan schneider:
           | https://nathanschneider.info/
           | 
           | and anybody talking about "platform socialism"
        
       | satvikpendem wrote:
       | Yes, I've made LLCs with friends primarily in a profit sharing
       | capacity according to work done as contractors, ie if the company
       | got a client, the ones who worked on that particular project get
       | a split of the profits after company expenses were taken into
       | account.
       | 
       | I've also made and worked on some fully open source projects
       | where the entire stack was open. I don't believe in those source
       | avaliable licenses because you either believe in your abilities
       | on the business side or you don't; if someone can take the exact
       | same product and market it way better, then you honestly deserve
       | to go out of business.
        
         | connectsnk wrote:
         | Can you elaborate more on how the expense split maths worked?
         | Also why would the contractor wish to keep getting the business
         | through the coop. Once they have the business, isnt it in their
         | interest to make a direct deal for the next instalment of work?
        
           | moralestapia wrote:
           | A lot of people on both sides are scared of the "direct deal"
           | situation whereas in practice it is extremely uncommon.
           | 
           | When was the last time you asked a Uber employee for their
           | phone number?
        
             | connectsnk wrote:
             | uber is not repeat business. Some platforms with repeat
             | business like upwork see this a lot
        
               | moralestapia wrote:
               | I don't think that applies.
               | 
               | A lot of people user Uber everyday. Not everyone uses
               | Upwork more than once.
        
           | satvikpendem wrote:
           | Because we're all friends and we only split the money for the
           | projects that we all worked on, projects that need, say, #X
           | engineers, #Y designers etc, and so we split the funds. If
           | anyone gets their own contract, by all means, they can get
           | paid directly, but usually companies might hire us as a team.
        
       | gessha wrote:
       | The folks at Muse discussed different ownership structures. I
       | didn't retain much from the podcast episode but I remember it was
       | fun and informative:
       | 
       | https://museapp.com/podcast/4-partnership-freedom-responsibi...
        
       | buildbuildbuild wrote:
       | I've been curious to try starting an Aftok: https://aftok.com/
        
       | erikerikson wrote:
       | A coop is a degenerate form of what has been called a Fair Shares
       | Commons[0] company structure.
       | 
       | https://graham-boyd.biz/fairshare-commons/
        
         | PaulRobinson wrote:
         | Why a "degenerate form"? This just looks like a co-op that
         | isn't locked to a single set of stakeholders (worker,
         | customer), as the owner group.
        
           | erikerikson wrote:
           | Exactly (mostly).
           | 
           | Coop is historically a two interest cooperative structure
           | (business+customer/employee/producer)
           | 
           | This model generalizes two to N and formalizes it.
        
       | 20after4 wrote:
       | https://sourcehut.org/ is a sort of coop open source project and
       | a SaaS with an interesting model.
       | 
       | There is also https://opencollective.com/ which provides a
       | platform for collective ownership of an online business.
        
         | ValentineC wrote:
         | > _There is alsohttps://opencollective.com/ which provides a
         | platform for collective ownership of an online business._
         | 
         | I don't think Open Collective "provides a platform for
         | collective ownership", unless I missed something on their
         | website and they've recently introduced some new offering.
         | 
         | As I understand it, they sidestep much of the legal process
         | through the use of fiscal hosts to collect and disburse money.
        
       | notepad0x90 wrote:
       | A 49% employee, 49% customer (b2b or subscription), and 2%
       | CEO/CFO model seems better for a long-term sustainable company,
       | especially for companies providing critical services like
       | Mozilla, Proton, Chrome (if it were divested),etc..
       | 
       | That aside, I think it's important to codify into the
       | incorporation charter or a company as well as share holder
       | agreements that the company will never go public. Or perhaps have
       | a clause that forces dissolution of the company and sell of
       | assets if an IPO ever went through. It makes sense for some
       | companies to be publicly traded but if your intent with a company
       | is to do the public, your employees or customers good, instead of
       | a pure profit play, then even the possibility of an IPO is
       | cancerous.
        
       | eclark wrote:
       | I work on a startup where the entire self-hosted SaaS is
       | permissively licensed.
       | 
       | https://github.com/batteries-included/batteries-included
       | https://www.batteriesincl.com/
       | https://www.batteriesincl.com/LICENSE-1.0
       | 
       | I started the company because I wanted to give the infrastructure
       | team that FAANG companies have to smaller enterprises. Most of
       | the best infrastructure is open source but too complicated to use
       | or maintain. So we've built a full platform that will run on any
       | Kubernetes cluster, giving a company a push-button infrastructure
       | with everything built on open source. So you get Heroku with
       | single sign-on and no CLI needed. Or you get a full RAG stack
       | with model hosting on your EKS cluster.
       | 
       | Since most of the services and projects we're building on top of
       | are open source, we wanted to give the code to the world while
       | being sustainable in the long term as a team. I had also been a
       | part of Cloudera, and I had seen the havoc that open core had on
       | the long-term success of Hadoop. So, I wanted something different
       | for licensing. We ended up with a license that somewhat resembles
       | the FSL but fixes its major (in my opinion) problem. We don't use
       | the competing use clause instead opting for a total install size
       | requirement.
       | 
       | I'm happy to chat with anyone about this, my email is in my
       | profile. Good Luck nd I hope it works for you.
        
       | anovikov wrote:
       | How does a co-op exit?
        
       | AznHisoka wrote:
       | Hot take, but anything is likely to work, as long as there is
       | demand for your product. Some might make less or more money than
       | the conventional approach, but if people really need your
       | product, they will do anything needed. So just focus on demand,
       | imo.
        
       | oulipo wrote:
       | I think there's this one in France https://coopcycle.org/
        
       | ravetcofx wrote:
       | There's a lovely managed web and Nextcloud host here in Vancouver
       | Canada that's a co-op. Had a really nice chat with their
       | leadership. https://cantrusthosting.coop/
        
       | rgbrgb wrote:
       | I'm also very interested in alternative company/governance
       | models. To me, the traditional company structure seems fairly
       | effective but I don't like the feeling of being an employee.
       | There's an ownership/power dynamic that feels inhumane but
       | fixable.
       | 
       | Before suggesting anything, it would be useful to understand your
       | goals with a co-op structure. What are you trying to improve over
       | the status quo delaware c corp that stripe atlas will setup? Are
       | you planning to take investment?
       | 
       | In terms of solutions, Flexile is an implementation I don't see
       | mentioned yet: https://flexile.com
       | 
       | It seems to be geared towards software companies that might not
       | need everyone as a full-time worker. Not sure how many of these
       | there are. It's by the Gumroad founder.
        
       | rsingel wrote:
       | I founded and run a SaaS technology company for publishers. I
       | think there's a rich vein here that hasn't really been explored.
       | 
       | [Outpost](https://outpost.pub)
       | 
       | We work with pubs like 404Media and Platformer
       | 
       | Incorporated in California.
       | 
       | Happy to answer questions
        
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