See also:
Cabin Clubhouse Draft Proposal 2
Results from the First Fellowship’s experiments in co-living suggest that people are inherently place-based, preferring local experiences over those that require them to relocate. Neighborhood Zero’s proximity to Austin makes it a suitable location to test an offering marketed towards Austin-based families and individuals.
This proposal is for Jon and Charlie to test out a subscription business model for Cabin properties, beginning with Neighborhood Zero. Members would be given access to property facilities, events, and beds, with the number of nightly stays granted per month workshopped over time.
Success of this experiment would mean that Cabin generated a return on it’s investment, acquired new citizens as a result of the experiment, and has a durable playbook for launching Clubhouses across it’s network.
Objective 1: Prove Social Club Model
To prove that this business model is replicable, a return on investment for both Cabin and the Property Owner is required. The DAO is contributing time & effort in the form of contributors while the Property Owner is contributing the property itself & the funding for the development required to host a growing population of members.
Both parties need to be rewarded, however in different timeframes. As the DAO is contributing for a year and will not own the underlying assets (the property and business), a return for their contribution by the end of year is expected. The DAO should also be rewarded for the risk they’re taking for contributing without a guarantee of financial return.
Since the property owner will benefit from the property development and own the underlying business, a longer timeframe can be used when analyzing their return on investment.
| Period | Entity | Revenue Share (%) |
|---|---|---|
| Year 1 | Cabin DAO | 60 |
| Property Owner (Jon Hillis) | 40 | |
| Year 2 | Cabin DAO | 10 |
| Property Owner (Jon Hillis) | 90 | |
| Year 3+ | Property Owner (Jon Hillis) | 100 |
At a membership cost of $300/mo, below is a breakdown of the a growth path that would achieve a return on investment for Cabin in the first year.
Alternative cost structure with additional $300 activation fee (this could be citizenship):
