Introduction
In order kick start a positive financial loop for the development of Kenya’s market, as well as providing an business friendly environment for the talents in DDM to turn their idea into reality, Diamond Digital Marketing Group (DDM) is going to introduce a Kenya Incubation Program. (a.k.a IncubK)
Objective of the IncubK
- Bring DDM’s service and product into Kenya’s market
- Finance the R&D of Kenya’s market from profit generated from any business line in Kenya.
- Provide an business friendly environment to faciliate any kinds of talent in DDM to monetarize their business idea.
- Let Kenya staff to operate or own their business based on the portion of contribution.
Scope of IncubK
Matured Business Line
Any kinds of Service or Products currently provided by DDM group and is running under the business name of DDM in Kenya:
- Google Ads Management
- Meta Ads Management
- Social Media Page Management
- Social Listening and data scrapping
- Domain Registration
- eDM
- Basic Cloud Infrastructure including : Web Hosting / Email Server / Web Server / Load Balancing / CDN /SMTP / Security Group / SSL / IP / Relational Database
- SEO
- Graph Database and related Machine Learning
- Semantic Search and related Machine Learning
- Website , Web Application or any kinds of systems built by WordPress
Seeding Project
Any kinds of Service or Products not mentioned in Matured Busienss Line and is eligible to be an Seeding Project , no matter its a ad-hoc short term project or project in long run, which the business is running under DDM’s business name.
Net Profit
Net Profit=
Sales Turnover–
COGS–
Operation Cost–
Taxation
Sales Turnover
Any Sales Revenue generated by rendered or delivered product or service in cash basis (i.e. not cash in arrear basis), from the client which owns a legal entity in Kenya.
COGS (Cost of Good Sold)
Any kinds of direct cost related to the selling and production activites which CAN directly and clearly assigned to the a particular Sales Order. For example Hourly Wages of the production, Sales Commission , Inventory (e.g. Contracted Infrastucture for a specific Sales Order)
Sales Commission =
10% *
(Sales Invoice Amount (in Cash Basis) –
Any kinds of 3rd Party Fee directly assigned to the Sales Invoice (e.g. Ads Spent))
Operation Expenses
Any kinds of indirect cost which CANNOT clearly assigned to a particular sales order. For example, marketing cost , amortization of the initial investment, R&D (Research and Development) Any kinds of monthly subscription infrastructure in general, Project Management Cost , so on and so forth.
R&D cost from only Seeding Project will be assigned to the operation expenses. For Matured Business Line, all the R&D cost will be absorbed by the current business line.
If a particular type of operation expenses which cannot be clearly assigned to Kenya’s Business Line, or only a small portion of that operation expenses is used by Kenya’s Business Line, that operation expenses (or portion of) will be absorbed by other Business Line in DDM.
For example, the monthly subscrption fee of Project Management System teamwork.com will not be classified as the operation expenses of Kenya Business Line because it only accounts for a very little portion of Kenya’s Business Line.
Taxation
Any kinds of Profit Tax, Value Added Tax or Sales Tax.
Kenya Business Line
- Any Sales Revenue which is brought by the employee and is generated from client with legal entity in Kenya.
- Any Cost is incurred by the employee or is generated from vendor with legal entity in Kenya, or the portion of any SaaS subscription fee which is assigned to Kenya’s business even though the SaaS vendor does not have legal entity in Kenya.
- The Service or product is rendered or delivered in Kenya
Profit Distribution Equation
Glossary
| Terminology | Definition |
|---|---|
| IncubK Stake | The fund pool that will be benefit to (and only to) any stakeholder involved the Kenya Incubation Program |
| Net Profit | Received (i.e. NOT receivable) Net Profit generated from Matured Business Line and Seeding Project in IncubK. |
| Reserve on Seed Fund | % of IncubK Stake which is reserved for future R&D and predictable expenses purpose. |
| DDM Stake | % of IncubK Stake that as the reward for the contribution of Diamond Digital Marketing Group. |
| IncubK Participant Stake (PS) | % of IncubK Stake for the Stake of a specific IncubK Participant |
| IncubK Participant Contribution Hour (PCH) | Number of Hours recorded in a specific period1 in teamwork.com for a specific projects or business line under IncubK program contributed by a specific IncubK Participant |
| Total Contribution Hours from All IncubK Participants (Total PCH) | Sum of the number of Hours in a specific period1 recorded in teamwork.com for specific projects or business line under IncubK program contributed by all IncubK Participants. |
| IncubK Participant Stake (PS) Factor | portion (in terms of %) of a specific IncubK participant which he/she entitled to the reward from his/her contribution. This Factor reflect the level of risk he/she is willing to bear. |
Profit Distribution Formula
IncubK Stake=
Net Profit in Cash Basis–
Reserve on Seed Fund–
DDM Stake
IncubK PS=
IncubK Stake*(
IncubK PCH/Total PCH) *
IncubK PS Factor
| Hourly Rate of IncubK Participant in specific Project | % of IncubK Participant Stake (PS) Factor |
|---|---|
| USD$3 | 5% |
| USD$2 | 25% |
| USD$1 | 70% |
| USD$0 | 100% |
Profit Distribution Time Schedule
| Item | Distribution Frequency |
|---|---|
| Wages | Monthly |
| Sales Commission | Monthly in Cash Basis (i.e. NOT in accrual basis) |
| IncubK Participant Stake (PS) | Quarterly |
IncubK Participant Eligibility
Any person who meets the following criteria is eligible to participate any Matured Business Line Project:
- Any full time staff employed by DDM Group before Jan 2025 , OR
- Any full time staff had been working for DDM Group more than 6 months, AND
- With Kenya National ID Card, AND
- Is still a full time Employee of DDM Group at the date of Profit Distribution , AND
- Person who explicity declared to agreed the terms of conditions of the IncubK Program Participation.
- Only The IncubK Participant Contribution Hour (PCH) recorded in an assigned Teamwork.com Task# will be classified as valid.
Terms and Conditions of IncubK Program Participation.
I hereby declare my interest for participating in the IncubK Program and agreed that:
- I will not spend my official office hours under DDM’s employment contract to work for any task related to IncubK program. Any violation of this term will be disqualified as the IncubK Participant.
- In case there is a deficit in the IncubK Stake derived from any Project from any Matured Business Line, no matter I have participated that project or not, I should and will only bear the monetary loss derived from the IncubK project NO MORE than the positive balance of my incubK Participant Stake.
- Whether intentionally or reluctantly if I no longer be the employee of DDM group , effectively from the last date of the resignation, I will not eligible to be the Participant of IncubK program, nor the IncubK Stake.
DDM Contribution on IncubK Program
In order to initialize and foster the InclubK Program, DDM Group is going to invest in below:
- USD$2,000 as the openning balance of
Reserve on Seed Fundfor all Matured Business Line Projects in total. - Absorb the Research & Development Cost of the Matured Business Line Project under IncubK Program by any existing up and running non IncubK Project. (subject to approval from DDM Group.) 3
- 12 hours per month on professional advice in any associated discipline on running or planning any incubK Project.
- In case there is a deficit of the incubK Stake, DDM is going to settle the deficit at no more than USD$1000 in a financial year.
Seeding Project
Details are to be discussed and open for discussion.
Miscellaneous Terms
- All the terms and conditions in the IncubK Program will be evaluated and modified from time to time. One month early notice will be provided in case there is any modification in any terms and conditions.
- Should any dispute arise, the decision of DDM Group shall be final and conclusive.
- Specific Period is the period mentioned in Profit Distribution Time Schedule ↩︎
- Specific Period is the period mentioned in Profit Distribution Time Schedule ↩︎
- For example. If a Domain Transfer technique in a Domain Reseller Project is needed to develop by spending R&D time cost, if this Domain Transffer technique can also be benefit to the existing Domain Transfer project in Hong Kong market, the Hong Kong Domain Transfer project will absorb the R&D cost of developing the Domain Transfer technique. (i.e. $0 R&D cost will be assigned to incubK Project. ↩︎
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