COSOL Web Developers
The COSOL project
COSOL is a sharing economy business concept created to both democratize and make the best value of distributed renewable energy generation, mainly solar power. One of the central ideas of the sharing economy model is to connect people, and the most efficient way is through a decentralized, automated online platform. COSOL is a virtual marketplace like AirBnB or Uber and similar to those companies also has off-line, traditional activities like contracting power plant construction.
Organization & Strcutre
Apart from connecting people on- and off-line, COSOL also has many other departments and business activities like marketing & advertising, sales team, legal department, power plant contractor unit, plant supervision, financial processing, accounting, engineering support, industry & government regulatory relations and so on. All these activities has to be coordinated and managed in order to reach the organization´s objetives.
As a basic democratic principle all involved should benefit from the organization´s achievement in accordance with their monetary or work input.
Being a strategic part of COSOL, Cosol Web is a business organization created to develop and operate the online web platform facing the users of COSOL on the Internet.
• Inform users on the business model and benefits of shared & distributed renewable energy facilities
• Create a searchable FAQ page providing all relevant information and answering doubts
• Provide a calculator where investors can see possible returns and consumers possible savings
• Register investors buying solar parcels for profits & energy consumers willing to generate their own power to reduce costs
• Register power plant projects and display them on the project map
• Register MLM representatives and process their fees
• Process the eCommerce of the sale and rent of solar parcels
• Keep a safe registry of solar parcel properties linking them irrevocably to their respected owners and tenants
• Process the monetary transactions of the renting contracts, informing due rent and comparing it to energy tariffs
• Process the operation & maintenance fees of the power plants as a % of the de rental fees
• Connect the Cosol Web platform to the platform of energy distributor companies for energy credit processing.
Ownership structure and profits
Cosol Web was created by COSOL Condomínio Solar Ltda, a Brazilian limited company inter-mediating and organizing the creation of shared & distributed renewable energy generation facilities such as PV power plants. Cosol Web´s platform was first developed by Csaba Sulyok from November 2015 using the Squarespace website builder, based on his PhD thesis on the economics of solar power in Brazil.
Cosol Web is owned by its developer programmers creating it and monetary investors providing founds for its development, hardware elements like cloud servers and integrated third party software components. The actual % of ownership is always proportional to the individual programmer´s (work) or investor´s (financial) input compared to the whole organization of Cosol Web. Example:
Csaba worked 6 month on Cosol Web. At this point 2 programmers join in: Jane and Jack workes 3 month on Cosol Web, both dedicating 8 hours per day to developments and creating equal amounts of codes and benefits to the platform with no outside investment, using free online storage and softwares.
• Csaba was owner of 100% of Cosol Web´s equity. Jack and Jane have both contributed 50% - 50% of the additional developments of Cosol Web. Jack and Jane have contributed together 40% compared to the whole of the platform now developed by Csaba, Jack and Jane.
• Csaba will own now 60%, Jack 20% while Jane another 20% of Cosol Web.
• Sam, an Angel Investor joins in and invests US$ 1 Million to Cosol Web. Using this money Cosol Web will be able to scale up operations on AWS cloud servers and buy additional software components. Sam´s investment will contribute 25% of Cosol Web´s developments. All previous owner will give 25% to Sam for his financial input.
• Now, after the financial investment Sam will own 25%, Csaba will own 45%, Jack and Jane 15% and 15% each.
• Andrew, a UX specialist joins in and spends a month analysing and enhancing Cosol Web´s platform. His contribution is worth 2% of the current state of the platform. Everyone gives 2% to Andrew for his work inputs.
• Now, after the UX consulting, Andrew will own 2%, Sam 24,5%, Jack and Jane 14,7% each and Csaba 44,1%.
• As you can see the companies symbolic cake is sliced every time a bit more and a bit thinner as new contributors join in.
• However as the whole cake is growing more and more with each additional contribution, each slice is getting bigger and bigger.
• Now Jack is tired of web development and wants a new carrier as a dive master in Thailand. He will keep his participation in Cosol Web however this participation is going to be shrinking with time and additional developments.
MULTI LEVEL MARKETING AGENTS
The online platform has a more traditional alternative within COSOL: a network of MLM structured representatives. Those business reps earn a commission of 1% of every monetary transaction they coordinate like selling or renting PV lots. MLM systems proved to be successful even before the Internet, however much less efficient and a lot more difficult to organize.
How to compute ownership?
A complex mathematical formula is computing at any given time the actual contribution of each individual programmer and investor as a % of the whole platform. It factors in the relative weight of the code in terms of lines written and complexity, the time being spent on the development measured by monitoring tools and estimates of self reporting. Adds a factor for creative problem solving. In case of monetary investment compares the amount invested to the actual and future value of Cosol Web. In case of disputes a random number generator will assign a % of the disputed contribution that depends on luck within the limites of the discusses contribution.
Democratic voting process is in place, each member´s vote weighted as a percentage of his actual ownership in Cosol Web. Final decision is the discretion of the founder and in case of majority rejection of the fonder´s decision the final decision is made by a random function.
Income & Profit sharing
Cosol Web Company´s main product is the Cosol Web Platform that creates value to COSOL Condomínio Solar mother company by automating crowdfunding and power sharing processes listed above. As mentioned before, Cosol Web is being created to make client acquisition more efficient and cheaper than the traditional multi level marketing based representatives could do. COSOL, instead of paying 1% of cash-flow to representatives, will pay a slightly decreasing percentage of its exponentially growing income to Cosol Web for using the platform as a license fee. This means that each new 5 MW PV plant will generate around R$ 300.000,00 (€ 80.000,00) of income to Cosol Web as upfront investment is processed and an additional R$ 60.000,00 (€ 16.500,00) per year as rental fees are processed. As the model is highly scalable Cosol Web could process hundreds or even thousands of 5 MW PV projects in the coming years, therefore exponentially increasing income and profits to a multi million dollar business.
Income will be used to cover running costs of Cosol Web Platform hosting, maintenance and hardware components. Once net profits remain, they will be divided between the owners; both programmers having invested their work and talent and investors having invested their funds as a percentage calculated as explained above. Profits will be converted to digital currencies and sent out to each shareholder of Cosol Web on a regular basis.