Transaction Model

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.

1. Talent Transactions (Staffing Model)

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.

Transaction Flow

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

Economic Distribution

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 & Semaphore

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)

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

Transaction Flow

Client Opportunity
       ↓
 Solution Design
       ↓
Technical Leadership
       ↓
Solution Delivery
       ↓
Revenue Distribution

Economic 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

Final Economic Structure

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)