Transparency is a core value in our community, and we also want to make life easier to new communities who would like to set up their own OFN instance in their local territory.
So in this wiki you will find different examples, commented, of the business model that some local OFN entities have built. Because if we want to really transform the food system, we need to find sustainable business models to do so. Don’t hesitate to ask questions, comment and share your own when you have built it up!
Our business model is based on 3 sources of income:
- we take a 2% commission on the sales that are made through the platform. We consider that as a “crowdfunding”, in a way that all the users will finance together the work which is needed to maintain the platform and support the users. As the entity is a non-profit, we have a collaborative governance structure so the users are also very much encouraged to become members, so that they also contribute in the decision making process regarding the platform. To encourage that, we have added a monthly fixed cost of 300 NOK per month for users who are not members of the non-profit…when the annual subscription of the non-profit is 300NOK
- we have a little revenue from membership fees, the member of the non-profit can be individuals/hubs (they pay 300 NOK per year) or institutions (they pay 1000 NOK per year)
- the last part is the fee we ask to create a group on the platform, a one time fee of 3000 NOK. We consider that it can be a great tool for big groups and organizations as a marketing tool, and that the value added for the user can be important. But this cas be discussed, we have not used this yet.
All this is still in theory as for the moment we have no formal users, about the small informal buying group I run.
Here is the file with some figures if you want to understand our assumptions: https://docs.google.com/spreadsheets/d/1Sl1m__NAAP4hxKGGbp8HED52fZJJfYSa9MXFnfYJDYk/edit?usp=sharing
Ping @serenity (no emergency;-))