Economic Model
Economic Model
Section titled “Economic Model”The WillDom economic model is designed to align incentives across the ecosystem while enabling scalable growth of transformation solutions and capabilities.
Rather than concentrating all revenue within a centralized organization, the platform distributes value among the participants who contribute to generating opportunities, designing solutions, and delivering projects.
This model encourages collaboration, specialization, and entrepreneurial participation, allowing the ecosystem to grow organically while maintaining strong economic incentives for all participants.
The economic structure is based on four core components.
Revenue Distribution
Section titled “Revenue Distribution”Revenue generated from client engagements is distributed among the ecosystem participants based on the roles they play in the opportunity and delivery.
Typical participants in a transaction may include:
- The Branch or Partners that originated or manages the client relationship
- The Branch or Partners contributing delivery capabilities
- The solution leaders or vertical leaders who developed the solution framework
- The platform that enables coordination and governance
This distribution model ensures that value is shared according to contribution, encouraging ecosystem participants to collaborate in designing and delivering transformation initiatives.
Royalties
Section titled “Royalties”Overview
Section titled “Overview”As a general rule, royalties are paid to WillDom for any new business generated after the execution of the Strategic Alliance Agreement, in accordance with the agreement signed by each branch or partner.
Under the contract, royalties are composed of two elements: a Minimum Monthly Value and a Monthly Percentage Value. The Minimum Monthly Value is the recurring fixed monthly amount established in the agreement. The Monthly Percentage Value is the variable royalty applied to the revenue generated by new business conducted after the signature of the Strategic Alliance Agreement.
General Rule
Section titled “General Rule”Royalties are due to WillDom on any new business generated after the signature of the Strategic Alliance Agreement.
If a new client is incorporated into the ecosystem after the execution of the agreement, the corresponding royalties begin to apply. This is the default rule and should be understood as the standard treatment unless a specific exception has been formally approved.
Pre-existing Clients
Section titled “Pre-existing Clients”If the client was already part of WillDom before the relevant branch or partner signed the Strategic Alliance Agreement, the transaction must be analyzed based on the nature of the business.
A renewal of a pre-existing WillDom client does not generate royalties.
However, if there is an upsell involving a pre-existing WillDom client, royalties may still apply depending on how the business is structured and which operators participate in the revenue generation.
Upselling for Pre-existing WillDom Clients
Section titled “Upselling for Pre-existing WillDom Clients”If there is an upsell for a pre-existing WillDom client and the business involves a developer or operator from the network, then royalties apply.
In those cases, the royalty follows the commercial structure of the transaction. The royalty burden is not assigned arbitrarily, but instead follows the same allocation logic as the revenue sharing or margin sharing applicable to the underlying deal.
If two operators participate in the upsell, both operators pay variable royalties. The royalty is shared according to the same percentage used for the revenue distribution of the main business.
Inter-branch and Branch-to-Partner Transactions
Section titled “Inter-branch and Branch-to-Partner Transactions”If a business is conducted between two operators in the network, whether between two branches or between a branch and a partner, both parties pay the variable royalty.
The applicable principle is that the 5% variable royalty follows the same proportion as the revenue share of the transaction. Royalties should be split in the same proportion in which the revenue, margin, or economic participation is split between the parties involved.
Staffing Transactions
Section titled “Staffing Transactions”In staffing transactions, where the economic structure is typically shared 50% / 50%, the royalties follow that same logic.
If the principal business is shared fifty-fifty, then the 5% variable royalty is also allocated fifty-fifty. One operator pays 50% of the royalty and the other operator pays the remaining 50%.
Solutions Transactions
Section titled “Solutions Transactions”In solution transactions, the royalty follows the same three-way split used in the solutions economic model:
- 20% — Solution Know-How Leader
- 40% — Client Relationship Owner
- 40% — Delivery Provider
Each participant pays their proportional share of the 5% variable royalty based on their economic participation in the transaction.