Spolu 16: Corporate vs. Spolu Matrix

The corporate matrix is simple. Investors invest in the business. If the business succeeds, the investors get all the benefits — in either dividends or capital gains.

The spolu matrix is also simple. If the spolu is successful, it puts a significant portion of that profit back to the stakeholders: investors, employees, customers, suppliers, philanthropy, and re-investment obligations.

Which matrix works better for you?

To help you answer this question, let’s create another hypothetical business. Here are the basic statistics of B-Z Manufacturing:

· 100 employees, who earn $40,000 a year. Total annual payroll is $4,000,000

· 1 CEO. The corporate CEO makes $2,000,000 a year. The spolu network’s 20x multiplier means its CEO makes $800,000.

· The pre-payroll profit is $7,000,000.

· Corporate taxes are 25%.

· All spolu employees are fully vested to share the profit distribution.

The corporate model would move $750,000 to the investors.