We The People is a global startup accelerator platform focusing on marketing successfully crowdfunded innovations.
Offering startups distribution through the platform’s one-of-kind global retail stores supported by on-line sales, LiveFunding support, and access to the For Creators By Creators network in exchange for equity and/or exclusives on products.
Initial Licence Offerings (ILOs) are a revenue-based form of raising money for companies who have a product or service that is already in revenues or is ready to start earning revenues.
The ILO is a straightforward distribution rights licence that expires after an agreed period of time or is exchanged for cash under a buy back or for equity dependent on the offering.
ILOs are contracts between the company and the ILO buyer. ILO buyers promote the product to their network of contacts to qualify for royalties.
Royalties are split evenly amongst the ILO units and are based on an agreed percentage of gross revenues. ILO buyers can also obtain a code to make direct sales of the products for commission in some cases.
Companies can issue their ILO round in one go or split it into two or more rounds. Secondary rounds may be at a different price calculated from the value of the royalties paid out in year one.
ILOs can also be bought and sold mid-term on the ILO Contract Exchange. (ILOCX).
Sell the ILO on the ILOCX Exchange at the current market price.
Purchasers of the ILO units pay via Stripe or PayPal. At the moment, this goes into the ILOCX pot hence, lesser gateway fees.
ILOCX then deducts a commission of 5% and forwards that balance to the Company’s Bank or Paypal account.
Banks and Paypal may charge fees for this transfer therefore to save on wiring fees, it might be advisable for the company to wait until a larger balance has been received before drawing down on the ILO monies.