contribution model committee -- membership / sponsorship for oht committee report may 25, 2011

Contribution Model Committee -- Membership / Sponsorship for OHT

Committee Report

May 25, 2011

Committee Members

Ron Byers Tim Elwell -- Chair Roger Maduro Skip McGaughey -- Advisor John Piescik Ken Rubin

Objective

To come up with a contribution model recommendation comprising of membership and/or sponsorship

Process

Weekly teleconferences– 7 in total with Minutes posted to the OHT BB

3 Interviews Mike Milinkovich

– The Eclipse Foundation Brian Behlendorf

– The Apache Foundation– The Mozilla Foundation– Benetech

Chris Mackie– The Mellon Foundation

Survey– Solicitation– Review– Posting

Recommendations

Considerations for Recommendations

Needed to work within a 501(c)6 (“Trade Organization”) Structure

Target receipts: $360,000/year– Membership– Sponsorship– Other

Model needs to be flexible– So non-cash contributions are also acceptable

Track Governance-related issues– Recommendations outside the scope of this workgroup

Interview Themes

Create clear membership categories– Permit members to self select

Projects and/or Control/Influence is NOT for sale– Decisions on projects based on merit not monetary

contribution

Make it simple Remain flexible Offer alternatives for companies that can’t pay

– IP, Resources, Payments for services

Additional Revenue Sources

Publishing journals Running Trade Events Job Banks Annual Meeting registration Advertisements Bid on RFPs OHT Consulting OHT Training OHT Certification

Other Budgetary Alternatives

Supplement paid positions with more volunteer positions

Survey Summary

Survey Monkey Tool Statistics:

Size of Organizations

Organization Type

Response Response

Percent Count

1-50 61.90% 26

51-500 21.40% 9

501-2,500 2.40% 1

2,501-10,000

4.80% 2

>10,000 9.50% 4

Government 4.80% 2

Not-for-profit 23.80% 10

For-profit 69.00% 29

None of the above

2.40% 1

Total Distribution Size 73Bounced 3Total Organizations Represented 61Total Sent 70Total Responses 42Response Rate 60%

Perceived Value (Strongly Agree/Agree)

Identify partners for collaboration and/or co-development. 35.0% (14) 45.0% (18)

Shared development infrastructure and tools so that members can contribute on higher order value.

37.5% (15) 30.0% (12)

Ability to network. 47.5% (19) 30.0% (12)

Ability to obtain new ideas. 30.0% (12) 42.5% (17)

Access to low cost technology. 2.5% (1) 40.0% (16)

Improved access to open source projects and technology. 15.4% (6) 56.4% (22)

Ability to share ideas and improve solutions. 40.0% (16) 40.0% (16)

Access to smart people who really understand open source. 42.5% (17) 32.5% (13)

Improved ability to track health care market industry trends. 18.4% (7) 39.5% (15)

Strongly Agree

Agree

What is Expected for Payment?

Ability to be on the OHT Board of Stewards.

37.5% (15) 22.5% (9) 27.5% (11)

Voting priviledges on project reviews, membership participation, and Bylaws.

40.0% (16) 30.0% (12) 17.5% (7)

Ability to participate in OHT projects, workgroups, and Councils.

52.5% (21) 35.0% (14) 10.0% (4)

Access to CollabNet. 22.5% (9) 27.5% (11) 30.0% (12)

Logo placement on the OHT website.

20.0% (8) 32.5% (13) 32.5% (13)

Access to discounted advertisement space.

5.1% (2) 17.9% (7) 33.3% (13)

Ability to use the OHT Logo and name in press releases (with OHT permission.)

17.9% (7) 28.2% (11) 28.2% (11)

Discounts for OHT-related conferences.

2.5% (1) 37.5% (15) 37.5% (15)

Direct access to the OHT Leadership.

30.0% (12) 37.5% (15) 17.5% (7)

Ability to sponsor OHT events with attribution.

5.4% (2) 27.0% (10) 32.4% (12)

Very Important

ImportantSomewhat Important

Survey Self Recommended Payment Levels

Response Response

Percent Count

$0 21.40% 9

$1,000 42.90% 18

$5,000 23.80% 10

$10,000 4.80% 2

$15,000 4.80% 2

$20,000 2.40% 1

Concerns

42

0

Response Response

Percent Count

Yes 33.30% 14

No 14.30% 6

Unsure 52.40% 22

8. If required to make a monetary contribution as a requirement for membership, would your organization remain a member of OHT?

answered question

skipped question

42

0

Response Response

Percent Count

Yes 35.70% 15

No 21.40% 9

Unsure 42.90% 18

2. Would your organization financially contribute to OHT if a membership fee were instituted?

answered question

skipped question

• Expect uncertainty until fee has been set.• Membership cancellations are quite possible and should be factored into the revenue projections.

ISSUE

Overall Average Recommended Membership Fee

– $2,800 to $3,200 Results

– $170,000 to $195,000 Average time to pay

– 4 months Hits ~50% of Target

– Assuming no attrition

SizeAverage

ContributionExtrapolated No. Members

Extapolated Contributions

Ave. Months to Pay

1-50 2,000$ 36.6 $ 73,200 451-2,500 6,000$ 12.2 $ 73,200 4

2,501->10K 5,000$ 6.1 $ 30,500 5

TOTAL $ 176,900 Goal $ 360,000

% of Goal 49%

Options

Ask membership to extend Address value gap Look at alternative funding mechanisms to fill

the gap

Option ------------> 1 1.5 2 3Small (1-50) 2,000$ 2,000$ 3,200$ 4,000$ Medium (51-2500) 6,000$ 6,000$ 7,500$ 10,000$ Large (>2500) 5,000$ 7,500$ 10,000$ 15,000$ % of Goal (1) 49% 53% 75% 100%

(1) Assumes no Attrition

Backup

Contribution Range by Company Size

Size (x-axis):– 1=1-50 employees– 2=51-500– 3=501-2500– 4=2501-10K– 5=>10K.

Variance Chart

0

5

10

15

20

25

0 1 2 3 4 5 6

Size of Company

Co

ntr

ibu

tio

n L

evel

s ($

Ks)

Contribution regardless of Company Size

Scattergram

0

5

10

15

20

25

0 10 20 30 40 50

Individual Company Inputs

$1,0

00s

Option 1 – Get’s Us to nearly 50% of Target

Annual Target360,000$

Category Number Full VotingSmall 1-50 Employees 36.6 36.6Medium 51-2500 Employees 12.2 12.2Large >2,500 Employees 6.1 6.1

Number Full VotingSmall 1-50 Employees 0 2,000$ Medium 51-2500 Employees 10 6,000$ Large >2,500 Employees 10 5,000$

Revenue

Number Full VotingSmall 1-50 Employees 36.6 73,200$ Medium 51-2500 Employees 12.2 73,200$ Large >2,500 Employees 6.1 30,500$ Total 176,900$ Percentage of Target 49%

Option 2 – Get’s us to 75% of Goal




Revenue


Option 3 – Get’s Us to 100% of Target




Revenue


contribution model committee -- membership / sponsorship for oht committee report may 25, 2011

Documents

membership sponsorship

attritionoptionsask

membership cancellations

contribution model committee

revenue projections

residualsx variable

average time

extendaddress value