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ccMixter RFP - collective bid?

oldDog
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permalink   Thu, Jun 5, 2008 @ 11:33 AM
OK this is just to get the ball rolling, and with no serious thought behind it yet.
John Pazdan raised the idea here of some (or all?) of the current members of ccM pooling their skills/knowledge/resources/hard cash to put in a collective bid for the new ownership of ccM. It would obviously need a huge amount of effort and expertise, and I have no idea whether it’s a realistic prospect. BUT I for one would be very interested if it proved to be a way of maintaining all the things we love about the site.
Maybe others have already thought about this (Spin??) - if so, I’d love to hear what everyone’s thoughts are, and to express my readiness to commit some time and thought (and cash if it comes to it!) to such a bid.
OD
duckett
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permalink   Thu, Jun 5, 2008 @ 1:49 PM
As much as I love the idea, my own contribution would either have to be dinky (cash-wise), or in some other form. It IS a great idea, though!
billpg
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permalink   Thu, Jun 5, 2008 @ 2:05 PM
My current preference is for a something like a charitable foundation to own ccmixter, I would be very happy to set up a standing order with my bank to pay a regular contribution to keep it free and ad-free.

How much are we talking about? How many people would need to pledge to make a regular contribution to keep the site running?

A year or two ago, I took part in a pledge-bank project to fund and start a charity. I’d start one for ccmixter if I knew what would be a reasonable target.

http://www.pledgebank.com/new
spinmeister
admin
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permalink   Thu, Jun 5, 2008 @ 2:39 PM
Yes, I’ve done a little pondering - all rather uncooked so far.

There may be real or perceived business opportunities around ccM while leaving ccM’s spirit intact. The perceived one’s (by people with money) are arguably the one’s that will drive this one way or the other. So if someone puts a decent chunk of cash on the table and has a somewhat reasonable sounding plan, they will probably be the winning proposal.

However, it’s not entirely obvious to me, why someone would need ccM for their business plan. Most or possibly all music related business plans with a CC angle could likely be done with ccM remaining the way it is. Would a business like that suffer, if ccM goes away? I’m not sure. The software is open source, the music is CC, anyone could effectively clone ccM without getting any permission from the CC.

And just because somebody might do it, might not make it a good idea. What if the business plan fails and the cash dries up? In my humble opinion, ccM would be hurt by a dying process of a future owning entity, although examples of phoenix like resurrections do exist (but I suspect they are the exception, not the rule).


Who would miss ccM the most?
- Arguably us, who are here and future ccM’ers who haven’t found ccM yet. Heck I was rather late to the party - and so were a number of by now influential / important people here.

What would we miss the most?
- arguably VS and teru, followed closely by the other active and visible community members who are the flesh around the bones of the above two individuals. I’m hesitant to start mentioning other names, because I would inadvertently leave out too many deserving people. Is everyone replaceable? Yes, but some are much more difficult to replace than others.

Would we invest (time and/or money, depending on personal circumstance) to keep this community going in the spirit that it has now?
- that’s what this thread is for.
- I would (some of each)

What’s might we do, if we don’t like the winning proposal?
- because of the open source nature of the software and the music, we could clone the current community under a different domain name and just move. (By the way, this point pretty much guarantees, that any new owner has to make sure, that a critical mass of currently important people are happy with the proposal).

What might the next steps be on the road to a potential collective?
- find out who might be interested in participating
- find out what existing relevant talent,experience and commitment is in that group (legal, financial, technical, marketing, …)
- discuss possible financial models, organizational models (non profit vs. for profit, governance model, etc.)

I’ll leave it at that for now - and am of course eagerly looking forward to everyone’s thoughts - including contrary opinions.
 
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permalink   oldDog Thu, Jun 5, 2008 @ 3:36 PM
Excellent post, which helps to clarify some of my own thoughts.

I think the danger of sitting back and waiting to see what happens to the site (and then taking the ball and making our own game if we don’t like it) is that the chemistry of these things is mysterious and serendipitous (that’s a good word - I didn’t go to Cambridge for nothing!) If it fails, there’s no guarantee that the same energy/people will be there to pick up the pieces. So it is in our interests to act preemptively.

If we were to make a “collective bid”, we would obviously need to arrive at some idea of how much money would need to be “on the table”, as well as establishing how much it in fact costs to run the site as it is. But how much of this is it feasible to discuss openly, if we are preparing a bid in opposition to rival bids? (am I being paranoid/naive?!)

But as you say, the first step would be to know who’s interested and what they have to offer.

It sounds to me as if you have some knowledge of the possible alternatives as regards legal and business structures - would it be too much to ask you to briefly outline them? - assuming you have nothing better to do with your time ;)
 
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permalink   spinmeister Thu, Jun 5, 2008 @ 4:16 PM
I just sent an email to the RFP designated address asking for the kind of data it would take to establish a baseline minimum budget and also asked for clarification of which data items are ok to discuss publicly and which one’s are not. I’ll post here once I hear something.

So I hope to hear back enough to be able to take a first crack at a minimum high level budget. Of course VS could give us that, but for now he’s kind of neutralized - that’s why I’m going through CC channels. If VS should be allowed to speak more I’m looking forward to him doing so. In the meantime I’ll try to come up with some high level budget numbers from my experience.

I’m NOT experienced in structures of non profits - those are also very jurisdictional. But that can be solved later. I think the two most important things to figure out and discuss are financial / economic model and the spirit of a community / collective governance model.

Regarding the economic model, the most important thing to discuss here is assembling ideas to generate funding/revenue. Here are some that come to mind:
- fully voluntary donations (need to be hustled for)
—- by individuals
—- by institutions
- advertising (it may violate one of the current RFP conditions, but if the community decides for it, why the heck not have advertising?)
- institutional and/or corporate memberships and/or sponsorships (this is an interesting topic deserving of it’s own sub discussion: e.g. what could ccM offer to makers of DAWs or plugins, so they would part with some cash?)
 
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permalink   MC Jack in the Box Thu, Jun 5, 2008 @ 4:22 PM
Quote: spinmeister
- institutional and/or corporate memberships and/or sponsorships (this is an interesting topic deserving of it’s own sub discussion: e.g. what could ccM offer to makers of DAWs or plugins, so they would part with some cash?)


this is actually a cool idea, if it were to come off as some sort of non-profit, foundation sort of thing which sponsors could “underwrite”. i think the community can offer plenty of beta testing of new products, focus groups to provide targeted feedback of current products, etc. we use their stuff. we are their market. they would want to sponsor but they would also want promotional considerations (banner ads, maybe the ability to e-blast the registered user list, etc.). but i do think this is a good idea. that said, it requires someone to sell the idea to potential sponsors, and that’s more work for someone.

in fact, i’ll even go out on a limb here and say that if someone went out and lined up one or 2 attractive potential “sponsor committments”, say Digidesign or Mackie or JBL, it might make a community-rfp more attractive and require serious consideration. and it’s a way of having it both ways, some degree of commercial investment but controlled by the community currently here.
 
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permalink   spinmeister Thu, Jun 5, 2008 @ 4:27 PM
yes, it is work for someone or more budget to pay someone for that work.
 
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permalink   Mike Linksvayer Thu, Jun 5, 2008 @ 6:26 PM
Quote: spinmeisterI just sent an email to the RFP designated address asking for the kind of data it would take to establish a baseline minimum budget and also asked for clarification of which data items are ok to discuss publicly and which one’s are not. I’ll post here once I hear something.

Hi. The RFP address goes to me, so I’ll just reply here.

The site runs on one box, currently hosted at ServerBeach @ roughly $250/month, including bandwidth (2T/month). At times a ~$10/month Dreamhost account has been used to help with bandwidth.

By far the largest cost associated with running the site is people. That basically means Victor and a small amount of legal/finance/hr/management overhead from CC.

Quote: spinmeisterSo I hope to hear back enough to be able to take a first crack at a minimum high level budget. Of course VS could give us that, but for now he’s kind of neutralized - that’s why I’m going through CC channels. If VS should be allowed to speak more I’m looking forward to him doing so. In the meantime I’ll try to come up with some high level budget numbers from my experience.

Thanks for going through the channel. :)

I’m fine with Victor providing non-confidential information on this forum. Anything non-public needs to be taken through the ccmixter-rfp address.

Mike (CC)
 
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permalink   spinmeister Thu, Jun 5, 2008 @ 7:09 PM
thanks for the quick and public response, Mike! Much appreciated!
 
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permalink   spinmeister Fri, Jun 13, 2008 @ 11:10 PM
ok - I probably didn’t make it clear enough where I was coming from:

To me the idea of “the collective” was only interesting as a last resort, in the case of no acceptable RFP responses coming in and the CC still deciding that they didn’t want to own and support ccM anymore.

I don’t really have any interest in battling for control over ccMixter in competition with other external or community internal bidders. I’m perfectly happy and would prefer to continue as a regular ccM community member and occasional volunteer.

Sorry for any confusion I have caused.
MC Jack in the Box
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permalink   Thu, Jun 5, 2008 @ 3:40 PM
i’d just add (and being frank here), if the spirit of the site were to change significantly, the probability of “cloning” the site with a different URL is certainly a possibility, given the open source nature of everything around here, including the site itself. and i doubt the CC folks are trying to profit from this spinoff idea. i think they’d just like to see the site continue and have the resources to handle the growth, which i think is what most if not all of us want as well.

speaking only as an on and off administrator of a similar web-based community of artists for a number of years now, growth offers great exposure but it’s alot of friggin work. and in the case of remixfight (and probably ccmixter), it’s pro-bono work. frankly, i like the fact that remixfight is fairly small and focused, and the people that participate in the forum do so pretty regularly. i’d love to see more people involved, but i have no desire to see it explode, or commercialize it in any way. still, i’d love to see anyone participating either here or there to be able to find commercial opportunities if that is what they are looking for. that’s just not what really drives me.

as a community, it’s not fair to put the burden on victor or eric to carry the extra load (and we’re not even talking about bandwidth cost here). having a professional entity carry that responsibility frees up more time for the artists to be artists.

to me, the RFP idea deserves a chance, especially if it proves to be seamless and transparent. and if it turns into something i’d rather not be associated with anymore, maybe i’ll go join a different community of like minded artists.

oh wait, i already know such a place. :)
MC Jack in the Box
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permalink   Thu, Jun 5, 2008 @ 3:46 PM
Quote: oldDogOK this is just to get the ball rolling, and with no serious thought behind it yet.
John Pazdan raised the idea here of some (or all?) of the current members of ccM pooling their skills/knowledge/resources/hard cash to put in a collective bid for the new ownership of ccM. It would obviously need a huge amount of effort and expertise, and I have no idea whether it’s a realistic prospect. BUT I for one would be very interested if it proved to be a way of maintaining all the things we love about the site.
Maybe others have already thought about this (Spin??) - if so, I’d love to hear what everyone’s thoughts are, and to express my readiness to commit some time and thought (and cash if it comes to it!) to such a bid.
OD


I just want to say it’s very cool of you to step up and suggest this. whether or not anything actually transpires, your love for the community is obvious and appreciated on many levels.
fourstones
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permalink   Thu, Jun 5, 2008 @ 4:32 PM
re my participation according to CC:
Quote: The community is certainly welcome to submit a proposal, using the same process everyone else has to use.

To the extent you participate in such a proposal, it has to be very clear that you are doing so as an individual and there should be a curtain around your duties as a contractor. Any confidential data you have as site manager could not be used in a proposal.

If your participation in a community (or other) proposal is interfering with your contractor duties you should immediately notify us.


So here goes…

I suggest setting up an exploratory committee with specific tasks assigned to members. There are many areas to cover and they all need to be in a real proposal. They have to happen in parallel so the first round of data would not be complete, so expect churn.

Mission Statement

Drafting this early means everybody is on the same page. What are the goals for the collective? What is the vision for the site, where does the collective expect to take it in 2 years, 5 years, 10 years? What is “success” and how do we know when it’s been achieved? For example, I happen to have strong feelings about the potential future of the site that seems run counter to a lot of the feedback we’re getting in these forums wrt the RFP.

Community Interest

Track down how many members would actively participate and to what level. There are two ways to go, either a BUNCH of people donate time, or a BUNCH of people donate money to pay someone to put in the time.

Budget

Draft a budget of what it would take to run the site, with and without payroll (legal, coding, sysadmin, etc.)

Structure of the org

There are many possibilities as to how the new organization is incorporated: as a non-profit, a foundation, an individual, a for-profit company. Someone needs to track down the implications of all these and report back to the committee.

Marketplace Analysis

Track down other sites that are in similar or complementary areas and how the ‘new’ ccMixter would compare and contrast. Think about this way: if new-ccM is a non-profit who are you going to be competing against for grant/donation money? If new-ccM is a for-profit, who are you going to compete against for your product and services?

The idea that this is a collective means the work of keeping the site afloat be distributed. If the group, as a whole, can’t put together a coherent proposal where the assertions have been researched and verified then the chances of running the site in any form are nil.

VS
 
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permalink   spinmeister Thu, Jun 5, 2008 @ 8:47 PM
Quote: fourstonesFor example, I happen to have strong feelings about the potential future of the site that seems run counter to a lot of the feedback we’re getting in these forums wrt the RFP.

Maybe it’s time for you to share those feelings in rather clear terms - or do we need another interview? ;-)

It would seem to me, that the Mission has to be the first conversation. None of the others even become relevant unless the Mission statement is clearly sorted out.

p.s. I’m not enamored with a not-for profit straight-jacket. Where there’s work, there should be (at least potential for) money.
 
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permalink   fourstones Thu, Jun 5, 2008 @ 11:10 PM
Quote: spinmeisterIt would seem to me, that the Mission has to be the first conversation. None of the others even become relevant unless the Mission statement is clearly sorted out.

These are just my opinions, ok?

The proposal is due in 52 days. Maybe that sounds like a lot but if you don’t work in parallel, even with data missing at first, I predict you won’t make it. There’s a lot of tactical ground to cover and the most important thing to find out is the overall feasibility. You do not want the Board to find the holes. Or even worse, find them yourself after you’ve taken the reigns.

People have jobs and lives and spouses and a week is a blink in these situations.
 
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permalink   spinmeister Thu, Jun 5, 2008 @ 11:33 PM
fully agreed about time being of the essence, but without an outline of a mission (or at least a vision), no-one knows what they are signing up for or crafting. no?
 
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permalink   fourstones Thu, Jun 5, 2008 @ 11:48 PM
imo? no. The more data the better no matter what the vision/mission statement is. e.g. it doesn’t matter what the vision if there isn’t enough interest to keep it afloat through dispersed community activity. It ain’t a collective if there ain’t no collective there.

Let’s say the vision is A, and the person collecting the data on participation says 80% of members would be heavily involved if the vision was B, but only 30% said they would have anything to do with a site like A.

Good to know, no?
 
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permalink   fourstones Thu, Jun 5, 2008 @ 11:54 PM
the basic idea is to know more than the person reading the proposal. Have a real non-bs answer for any question that start with “Have you thought of…?”

I’m guessing these guys kill proposals for a living at their day jobs, then sit on the Board of CC and do it as hobby. You can’t overshoot on knowing your sh-t and you can’t know it in 52 days with everybody involved working on the same problem.

imho.
 
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permalink   Gurdonark Fri, Jun 6, 2008 @ 2:26 AM
This discussion is constructive. I think that Victor’s post is useful, because it begins the process of structuring.

I want to take a different but related try at the details, and then further address Victor’s punch list. I am going to try to stay on a surface business level rather than a legal level, and because I am a lawyer please pardon me that I must put here that nobody should look to this post or any public post I make here for legal advice.

I believe that the key to the assembly of a successful bid has three components. Component one is a bid structured to address the issues in the RFP in the RFP’s format. Component two is a bidder (or bidders) who can demonstrate substantively the ability to perform as bid. Component three is to have the best bid among the bids received, assuming that more than one bid meets components one and two.

The RFP sets out a detailed set of requirements in the appendix for what the bid must contain.

The RFP also sets out a request for the bidder to set forth, in effect, how the bidder will take ccmixter to another level.

The assets on sale are not particularly complex to understand.
The answer Mike L. gave to the cost of bandwidth question shows that bandwidth is relatively modest as an expense. The expenses, therefore, are more in the nature of staff, legal, development, marketing, and other similar infrastructure matters. The “pro forma” of how the mixter would run post-purchase is, to me, a key part of an RFP response.

Because so much of the “vision” is defined (and restricted) in the RFP appendix (and the Lessig post it incorporates), then I suggest that
an RFP response shell can be created now if there is sufficient interest to submit one.

Victor’s five points are good ones:

VS Point: 1. Mission statement

I suggest that the mission statement should be adapted directly from the Lessig post and the appendix. If ccmixter preserves the goals of that post, then it will preserve many other things expressed in these forums as important. I know that I posted a zillion cool things that I’d love to see, which probably differed from other peoples’ wish lists and ideas. I am not wed to my “wish list” as a “mission”, but instead want to see the “mission” achieve the goals of the RFP.

VS Point 2: Community Interest
I agree this is a crucial part of the bid, which can be fit into the RFP structure in these ways:
1. to show feasibility
2. to show desirability of this bid group
3. to make the “next level” future plans showing mentioned by the RFP

VS Point 3: Budget
Spreadsheets showing budget and assets available to the bidder are essential.


VS Point 4: Structure of the org
This is essential, with a branch in the road. The main cross-roads is non-profit versus for-profit. A non-profit has admirable goals, an admirable tax structure and an unsullied nature, but also has legal impediments due to its non-profit nature. A for-profit lacks the constraints. A for-profit with investors must be set up in an appropriate way to ensure that applicable laws are followed.

VS Point 5: Marketplace Analysis
I agree this is important. I see this as part of the “feasibility” discussion in the RFP.

Components two and three which I set out above, that is, structuring the bidder and the amount of the bid, require careful dialogue and discussion in which I offer to participate off-forum.

Component one, a template for an RFP response, can be assembled in skeleton form even while components two and three are in development.

I am willing, if the interest is there, to begin to build Component One, that is, a bid response form.

best, robert, who records as gurdonark
 
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permalink   oldDog Fri, Jun 6, 2008 @ 6:05 AM
Quote: Gurdonark
VS Point 4: Structure of the org
This is essential, with a branch in the road. The main cross-roads is non-profit versus for-profit. A non-profit has admirable goals, an admirable tax structure and an unsullied nature, but also has legal impediments due to its non-profit nature. A for-profit lacks the constraints. A for-profit with investors must be set up in an appropriate way to ensure that applicable laws are followed.


I would suggest that we need to decide on this first of all - we can’t even begin a proposal without knowing where we stand on this.

I personally am not clear on the implications of each “fork in the road”(and I wonder if there may be more than two?) Like most of us here, I’m attracted in theory to a non-profit model - but it may not be flexible enough for our purposes. I’d be interested to know if some co-operative model by which the users of the site were also the owners would be practicable. And if a more traditional share-ownership model were more appropriate, I’m in a position to consider putting some serious money in (having recently sold a family business) - but of course in that scenario I’d have to be convinced that it made good business sense!

One of the advantages that we have is surely that we ARE ccMixter, and I would have thought that CC would at least be well-disposed to a bid coming from us, if we can show a strong enough business (or non-business) model.
fourstones
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permalink   Fri, Jun 6, 2008 @ 10:34 AM
This process reminds me of one of the driving principles that has kept my marriage afloat for a couple decades: “Whoever cares the most wins”

Sounds to me like OD is volunteering to track down the org structure issues. Finding a lawyer to donate some time who knows this stuff would be my first approach (begging on lawyer type sites, etc.) Don’t forget to ask about scorps and international ownership issues (you being a foreigner and all ;))

Spin seems to feel strongly about the mission statement, go for it. Enlist whomever you like, as Bob suggests you can use the RFP as a starting point plus all the feedback that’s been accumulating here.

I wouldn’t mind taking a crack at the gauging the participation levels of users, it would take me a few days to put together a proper ‘survey’ and then sent out some emails to folks. Gathering the info back would be another week or so. The data would be anecdotal by definition but better than nothing.

Bob, being on his own axis (with love ;)), can own the actual drafting of the proposal and make sure the rest of are aligned with the Board expects - have I got that right Bob?
 
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permalink   oldDog Fri, Jun 6, 2008 @ 11:38 AM
I’ll certainly see what I can dig up on the “structure” front - but the reason I brought it up is that it’s something I know nothing about. Not trying to squirm out of it, but if anyone already knows something about this area, or could point me in the direction of particular structures to check out, it would save a lot of time! (I did have a look at scorps, but they specifically limit shareholders to US citizens, which counts me out (and doesn’t seem to go with the international character of the site).
fourstones
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permalink   Sat, Jun 7, 2008 @ 4:42 PM
Since I brought it and since I was asked to be more explicit, I have chosen to express some of my feelings about the ccM potential offsite.

Please keep in mind that these are my views as an individual and not as a paid contractor working CC on this site.
oldDog
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permalink   Wed, Jun 11, 2008 @ 1:44 AM
I’d like to feed back on my researches and conversations regarding the possible business structures for an internal bid for ccM. Nothing in this should be taken as legal advice.

A lot of this is thanks to Robert (Gurdonark) who knows much more about these things than I do.

There are clearly two ways to go, non-profit or for-profit, each of which has advantages and disadvantages. Perhaps the easiest way to discuss this is to leap straight to the conclusion and say that there seems to be a lot of merit in contemplating a hybrid of the two. In other words the site could continue to run more or less exactly as it is, funded by whatever grants and charitable donations we could raise, as a US non-profit. . The process of setting this up and getting it appropriately qualified would take a few months to complete, but could be initiated and ‘in place’ in time for the bid. Within the bid, there could be provision for the site to have a contractual relationship with another entity, namely a for-profit wing (ccMixter+) which could explore the potential for commercial development. Access to this ‘portal’ would be via ccM, and could be funded by subscription - or by advertising, or through offering various services (tutorials, promotion, management of licensing…you name it).

This would seem to tick the boxes as far as CC is concerned, because it allows the site to continue as now, with free membership, with material restricted to cc samples, with the same format and no adverts - but with the potential to develop the cc philosophy in the context of the commercial world, which is also part of the bid’s aim. The only (!) difference as far as the main site is concerned is that we would have to raise our own funding.

The for-profit wing would have to have limited liability, which boils down to a Corporation, or possibly an LLC (Limited Liability Company) which is a relatively new legal structure that is flexible in structure and is often used for start-up companies. A bidder would choose a state with laws that offer advantages for LLCs or corporations, and would choose between a corporation or an LLC on the basis of legal concerns not pertinent to this post. The bottom line is that a for-profit wing owned by investors could be run as either a US corporation or a US LLC.

The advantage of separating the two wings is that the for-profit wing could be small, flexible, and aimed more at the commercial possibilities, while the main site could continue to focus on supplying the same service that all of us want to preserve. However, the two wings would obviously feed off and benefit from each other.

If we decide on this approach, we would have to be clear about the funding required for the non-profit site, and be sure of being able to raise this (with employed fund-raisers, or perhaps using some goodwill on the site?) I don’t personally have enough knowledge of the situation in the USA to know how feasible this is, but from what I gather we probably wouldn’t be looking at an impossible scenario. The development of the for-profit wing could be more gradual, but any investors (ideally from within the community?) would have to be convinced that there were genuine possibilities for revenue, and a long term value in the site (it may be easy for rivals to replicate).

This approach seems to be a way of ensuring the continuity of the present site whilst simultaneously allowing for new developments: the alternative would be not to bid, but to trust the CC board to choose a winner from the bidding process that is genuinely consistent with the wishes of the current ccM community.
 
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permalink   fourstones Wed, Jun 11, 2008 @ 9:53 PM
Are you suggesting two separate organizations? One is a genuine non-profit the other a for-profit co? Or do you mean there is a business that happens to run two sites, one is ‘free’ the other is where the commerce happens?
 
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permalink   oldDog Thu, Jun 12, 2008 @ 1:53 AM
My understanding, and again I want to emphasize that I’m exploring ideas here and not offering any legal advice, is that there would need to be two genuinely separate entities in order for the non-profit wing to be genuinely non-profit. So when I say the two wings would benefit from each other, I mean in terms of membership and aims rather than sharing funding. We would need to get legal advice on the exact extent and manner in which they could be associated. In which case perhaps ‘wings’ is inappropriate language, and one should simply think of two related sites. But the idea was that the potential for both would be included in the bid.
 
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permalink   MC Jack in the Box Thu, Jun 12, 2008 @ 12:56 PM
I think your idea is pretty creative old dog, but setting up the “for-profit” side might be tricky and difficult as a start-up. But i think based on your model, the possibility exists for finding a “for-profit” entity that might be willing to spin off a non-profit new entity (foundation?) to suppport ccmixter in it’s current non-commercial state. Let’s say Google wanted to donate some grant money towards this new paradigm of music distribution. Having a big name sponsor would certainly open up alot of peoples eyes. Just my 2 cents, if this is the sort of model you are referring to OD.
essesq
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permalink   Sun, Jun 15, 2008 @ 12:12 AM
Disclaimer: I am a US lawyer. I do not specialize in corporate law. What follows are my impressions, but not necessarily my opinions. They are offered as further fodder for the thought process here and nothing more. I am not offering legal advice here. I have very high regard for this site as an operational as well as an artistic phenomenon, and my esteem for the community as well as the individual members of it cannot be underestimated.

My first thought is this: is this community capable of understanding all of the complexities of running this site? It strikes me that what we see here today is the result of a vision followed by a lot of hard work carried out by people, one in particular - helped by others to a significantly lesser extent.

VS is a very unique sort of manager, and I say this with respect and admiration. He has the technical know-how to work the code to make the things run. He also has the interest and passion to care about the mission of the site because in addition to being the manager he also participates in the community. Finally, he is an individual which gives him a great deal of flexibility in decision making, even though he may have certain responsibilities to respond to the board or whatever other oversight is in place. I would suggest that the minute you turn any of these functions over to a committee, you invite log jams in the management process. Assuming that any individual or collective will bring the same collection of attributes to the table that Victor has would be a huge mistake.

On the issue of profit vs. non-profit: I agree that there is a possibility that both could be accommodated through careful structuring on an organizational level, see below. Time and money are what are needed here. Time has two components: quantity and quality. I see a huge problem in assessing how much of either the membership can reasonably be expected to provide, particularly if they will be doing it on a volunteer basis. I may be unaware of a few of the hidden workings of this site but it strikes me that most of the people active here are active because they want to be and at any moment they could walk away and have no obligations to this site. The site relies on the talent pool here to make it attractive and to fuel it’s development. So my concerns are two fold: 1) How do you ensure enough time commitment to keep things going if people have no obligation to do so?; and 2) How do you determine initially whether the people assigned to various tasks are capable of carrying them out?

The preceding paragraph dealt with my concerns leaning in a non-profit member managed direction - so what about the for-profit direction? Well the biggest question here would be how do you decide percentage ownership? If you assume for a minute that the business entity will be a traditional corporation, shares could be purchased directly or given away on the basis of sweat equity contributions. But then you need to manage the time records or have some other means for quantifying the member contributions.

Mission: I’d have to disagree on the importance of the mission statement as a practical matter. I think that if you can determine all the other practical considerations the mission statement will fall into place. I think the survey that Victor suggested is a far better approach. I see too much possibility on people getting hung up on a few words or phrases in the mission statement, no matter how well crafted it is. If a mission statement must be drafted it should be simple and straight-forward in an effort to garner as much support as possible. I’m considering participation in Gurdonark’s thread to see if I can make any contributions there.

Organizational Structure: This is very complicated legal situation if the community is to own the site. I think there are a lot of questions that need to be answered before a structure can be chosen. I may lapse into legal language at some point so feel free to ask for translation if the need arises. How will the community decide who is eligible to become an owner? How will it then decide on the percentage ownership of each member? Will voting rights be given to each member to decide on critcal issues regarding site management or will the community elect a board to make those decisions? Will the board members have traditional roles or will they be elected by the community to represent a collection of special interests - e.g will there be delegates who are pro-commercial development and some which represent the free-for-all mentality. I guess what this boils down to is how are you going to govern this entity?

Next the risks, and I mean mainly financial (which means liability, and therefore legal as well) need to be assessed. The level of protection required will be another determining factor in deciding the structure.

Finally, no one has mentioned accountants and tax ramifications. My only advice is seek serious advice in these areas. The profit/non-profit debate is also very much about tax law so I think the community needs to get real, serious and independent advice here before launching any kind of bid.
 
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permalink   fourstones Sun, Jun 15, 2008 @ 3:11 AM
I think it may be instructive to let people know what I do at this site (and what I don’t) to give everybody of a feel for what it takes, exactly, to run the site as it is today.

The stated mission for the site was to be a laboratory for the overall CC mission and philosophy, which is that sharing is better for the world than not. However, I took it upon myself, from the start, to expand that mission to include the goal of showing that good music comes from sharing, even in a non-commercial setting (unproven at that point).

At the design phase I was handed a huge chunk of the site layout on a white board. I added major sections (e.g. making a pells section and putting that front and center, edpicks, sample pools and later at the community’s behest: playlists and collabs)

Promoting the site started out being purely a function of CC staff. The WIRED contest/CD was happening outside my line of vision when I came on board. I helped coordinate the Magnatune contest because the owner of the label is my friend but it was still CC driving the train (writing rules, press releases etc.) The contests that followed (Fort Minor, Crammed, Ghostly and others) were basically dropped in my lap, the legwork being done by CC staff to coordinate with the 3rd parties and even author the contest pages. I just posted the pages, pulled some levers in the code to turn on/off submission forms and gather the entries at the end.

I started to get more involved with 3rd party coordination when they started coming to us (BBE/Vadim, Calendar Girl, etc.) At this point, CC doesn’t do any of that any more and it’s me deciding who gets featured, when and how much. Under my direction Spin does his interviews (which I edit) and teru does a lot of the new special page posting.

I work with Teru on tech and community support, trackback approvals, and several other admin level techy background stuff.

Several other activities (edpick’ing, off-site beta testing, topic translations, track banning, etc.) are distributed amongst the community and I coordinate all that. wrt ongoing site expansion, CC used to be in the role the community now occupies - feature requester and sounding board.

Then there’s my involvement with the boxes that actually run this site which is, in a word: nothing. CC has sysadmins that I deal with a few times a year when things go kablooey or I need permissions set on a directory. They do db backups, deal with the hoster, manage system user accounts, upgrade OSs (when I let them), et. al. I’m not even sure what brand of unix is running on the thing.

In all those areas you can see varying degrees of collaboration, delegation and oversight. I don’t want to be doing many (most?) of the things that have fallen on me or even that I’ve taken on myself because I thought the site needed it done, but there it is. I think anybody with decent project management skills could see by my description where the lines are and how things could be further distributed and offloaded.

The code is a different story. Yes, it’s an open source project but largely due to my failings as a ‘team player’ there can be no question but that it’s my code. I would kill to have a hot shot (or 2 or 3) take huge chunks of it away and god knows site design and graphics needs to be taken away from me.

All the other organizational infrastructure stuff, the grant machinery, legal, accounting, PR, personnel and a billion other bureaucratic details is completely “magic happens here.”

Hope this helps,
VS
 
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permalink   Gurdonark Sun, Jun 15, 2008 @ 4:31 AM
Very helpful, and not that far off my understanding. Thank you for spelling it out straightforwardly.