Revenue Sharing Structure :
The revenue sharing structure at mñch aims to establish a mutually beneficial partnership between creators and the platform. Much like YouTube's ad revenue sharing, mñch offers creators a percentage of the product markup revenue generated by their D2C businesses. This revenue is derived from the sales of products through their online storefronts and marketplaces, with a portion of the product markup revenue from each sale contributing to the creator's earnings. The exact breakdown of revenue distribution between creators and the platform is as follows :
Creator Share : Creators receive 50 % of the markup revenue generated from the sales of their D2C brand products.
Example : Krsna receives 50 % of the markup revenue generated from the sales of her products. If a sustainable dress sells for $100 with a manufacturing cost of $40, the markup is $60. Krsna's share would be $30 (50% of $60)
Platform Share : Mñch retains 50 % of the markup revenue to cover operational expenses, platform maintenance, and ongoing support for creators. This ensures the sustainability of the platform and its ability to provide creators with the necessary tools and resources.
Example : mñch retains 50% of the markup revenue, amounting to $30 in the above example. This portion covers essential aspects like platform maintenance, operational expenses, ongoing support, and platform growth, ensuring mñch remains a robust and sustainable environment for creators.
Equity Stakeholding Structure :
Mñch's equity stakeholding structure, akin to its revenue sharing model, is strategically crafted to foster a mutually beneficial partnership between creators and the platform. Within this framework, creators are allocated an equity share in their D2C business, symbolizing their ownership stake in the business.
Equity Allocation : Initially, creators will be granted an initial equity allocation falling within the range of 40 % to 50 %, with the potential for increases based on their performance.
Creator's Role in Growth : As creators actively contribute to the growth of their D2C business, their equity stake can increase. Factors such as expanding their community, increasing sales, and consistently engaging with their audience, influence the growth of their ownership stake.
Exit and Transfer Options : Creators have the option to exit their equity partnership with mñch, transferring their ownership stake if they choose to pursue other opportunities or ventures. This flexibility empowers creators to explore new horizons while ensuring the continued success of their brand within the mñch ecosystem.
Example : Krsna, a successful lifestyle vlogger with her own sustainable clothing brand, initially receives an equity share in her brand ranging from 40 % to 50 %. This equity distribution is determined by the size and engagement of their community, and the trust they've built through their content. As she continues to expand her community and drive sales, her equity stake grows, aligning her interests with the brand's prosperity. In the future, if Krsna decides to explore new ventures, she retains the option to exit her equity partnership with mñch, enabling her to pursue fresh opportunities while ensuring her brand's lasting presence within the mñch ecosystem.