Skip to content

Transaction Model

The WillDom ecosystem operates through two primary types of platform transactions, depending on the nature of the engagement:

  • Talent Transactions (Staffing Model)
  • Solution Transactions (Transformation / Solution Model)

Each transaction type follows a different economic structure, reflecting the different sources of value creation.

Talent transactions occur when a client requires specific technical talent to augment their team.

In this model, value is created primarily through:

  • Access to the client relationship
  • Access to qualified technical talent

Because both elements are essential to the transaction, the economic value is shared equally between the two contributors.

Client Opportunity
↓
Client Owner
↓
Talent Provider
↓
Talent Assignment
↓
Revenue Generation

In staffing transactions, the margin generated by the engagement is divided equally between the two parties responsible for making the transaction possible.

Party Share Description
Client Owner 50% The ecosystem participant who originated or manages the client relationship
Talent Provider 50% The ecosystem participant who provides the talent assigned to the project

The distribution is calculated based on the gross margin generated by the assignment.

Gross Margin Calculation

  • Sales Rate: The rate the client pays to WillDom
  • Developer Cost: The rate the developer charges WillDom
  • DRP Cost: The hourly rate for the external talent team (if any)
  • CRP Cost: The margin the External Business Associate gets from the business (if any)
Gross Margin = (Sale Rate – (Developer Rate + External Talent Rate)) / Sale Rate

Example:

  • Sales Rate: $65
  • Developer Cost: $35
  • DRP Rate: $2
  • Gross Margin = (65 – (35 + 2)) / 65 = 28 / 65 = 43.07%

Semaphore:

Color Threshold Action
Green Gross Margin ≥ 35% Proceed with introduction
Yellow Gross Margin ≥ 30% Branch Managing Director of each party must review
Red Gross Margin < 30% Branch Managing Director of each party must sign off (email confirmation required)

Note: An expected minimum gross contribution of $1,500 is also needed to green-light each introduction.

Key Considerations:

  • The split done with another Branch is not considered a cost for this calculation
  • The External Business Associate Margin is not considered for the semaphore calculation
  • However, that cost is deducted from the remaining profit before splitting 50%/50% (if two branches are involved in the SOW)

2. Solution Transactions (Transformation / Solutions Model)

Section titled “2. Solution Transactions (Transformation / Solutions Model)”

Solution transactions occur when the ecosystem delivers a structured transformation initiative or technology solution.

In this model, value creation includes an additional component: solution design and technical leadership.

This means the economic structure must recognize three sources of value:

  1. The client relationship
  2. The delivery capacity
  3. The intellectual leadership behind the solution
Client Opportunity
↓
Solution Design
↓
Technical Leadership
↓
Solution Delivery
↓
Revenue Distribution

Solution transactions are distributed in two steps.

Step 1 — Solution Leadership Participation

Before the revenue split, 20% of the gross margin is allocated to the ecosystem participant responsible for the solution know-how and technical leadership.

This role includes:

  • Defining the technical architecture
  • Leading the solution design
  • Ensuring technical quality during delivery
  • Providing strategic guidance to the project

This participant is typically the solution owner or vertical leader.

Step 2 — Remaining Margin Distribution

After the know-how participation is allocated, the remaining gross margin is divided equally between:

  • The participant who originated the client opportunity
  • The participant providing the delivery capacity
Gross Margin
↓
20% → Solution Know-How Leader
↓
80% remaining
↓
40% → Client Owner | 40% → Delivery Provider
Role Share
Solution Know-How Leader 20%
Client Owner 40% of remaining (= 32% of total)
Delivery Provider 40% of remaining (= 32% of total)