In our previous post we described the Vortex Room Roles. These roles determine not only who can do what in a content room. They also establish the revenue split for income related to a room. In this post we'll describe the revenue splits, how they work and the projected values when Vortex goes into production later this month.
As discussed in our initial Vortex post, the key concept to the Vortex business model is intrinsic sustainability: the ability for a room to support its operations solely from revenue generated within the room, without advertising or subscription fees.
Additionally, Vortex is designed to incentivize room owners and content creators by providing a portion of the room revenue.
To meet these objectives, room revenue -- derived from one-time fees to create or access a room -- is split four ways:
- Vortex. Similar to the "service fee" in sites like Airbnb, the revenue paid to Vortex is used to support the staff and overhead for operation of the platform.
- Resource bank. This bank funds the hardware and network resources consumed in the operation a single room -- that is, the CPU, storage costs, and bandwidth charges.
- Room owner. The user who creates and moderates a room receives a portion of all room revenue.
- Content creators. Users who post content receive a portion of all room revenue. Since there can be more than one content creator in a room, the revenue allocated to content creators is divided equally among all content creators.
Revenue Splits by Room Role
Each role has both a different set of capabilities, and a different purchase fee. The revenue splits are therefore contingent on the type of room role purchase. The next three pie charts illustrate these differences.
Revenue Splits for a Room Purchase
When a room is created there are no existing room roles. Therefore the revenue is split between Vortex and the room's resource bank. This ensures the room has operating funds even without additional users for the room:
Revenue Splits for a Content Creator
To post content to a room a user (other than the room owner) purchases the Content Creator role. The revenue is split between the Room Owner, the resource bank, Vortex, and any other Content Creators for that room:
The Content Creators split is a pool that is divided among all existing Content Creators. If there is one existing creator, all 30% is allocated to that user. If there are 100, each user receives 0.3%.
Revenue Splits for Commenter or Reader
Commenters are allowed to comment on room posts, but not create content. Readers are allowed to read posts, and that is all. When either of these roles are purchased, the revenue is split four ways:
Again, the Content Creators split is a pool divided as described for the Content Creator split.
In our next post, we'll examine the resource bank in more detail.