[komali2]

> If someone gave me the chance to join something more like a worker-owned coop, where the workers on the business and vote on how it works

I run a co-op, and the most surprising thing I've learned is that it seems the only reason other people don't set up their businesses as co-ops is, frankly, greed.

In this startup ecosystem, why would you do a co-op when you could instead chase that multi million dollar exit that profits you? If we have any kind of event like that the earnings would be distributed basically equally among around 30 people. 20 mill payout suddenly becomes... Less...

Anyway though apparently statistics are on my side. Apparently co-ops are more sustainable and live for longer than traditional corporations. It seems to me that people are much happier here than at traditional corporations.

Clients are happy, engineers are happy and productive, I'm happy because I don't have the entire responsibility of the business on my shoulders - engineers are constantly contributing to the improvement of internal systems for example, because why wouldn't they? That saves them money too!

Downsides are increased ownership come with increased responsibility. Can't just clock in here, people need to manage the client relationship, issue invoices, participate in the accounting, and if they want more work when their gig is closing out, either try to sell the client on more work or help us find another one. Until we can find an alternative revenue stream to selling our labor to clients, we're all beholden to keeping the BD wheel turning in order to get paid. Upside is that we're keeping 85% of the margin for ourselves rather than at toptal where you keep, idk, 30%? And that 15% is still our money anyway it just gets used for overall co-op stuff, which members get to decide on.

Also I don't know if this kind of business lends itself to the silicon valley mythos of the huge work week for a few years followed by functional retirement. Instead it seems we'll all need to keep working for the foreseeable future, but at our own reasonable pace, fully remote, our own hours, at very high compensation but not "fuck you money" compensation. Well except for our people in Ethiopia and Taiwan, for the local market rates, their compensation is getting way up into that territory.

That said, I don't know about our ability to survive a full on capitalist attack in the form of lawfare or getting priced out or closed out of deals. Priced out in a labor market would be difficult since the only way to beat our labor margins is to hire directly, but we could be lawfared to death pretty easily considering our ARR might be 1 mil this year if we're lucky.

[bwhiting2356]

Maybe i’m a cynical capitalist, but I expect everyone to be operating in their own self interest. There are few true saints. Startups are high risk high reward. 9/10 fail. If a VC gets less upside when it works, the successes wouldn’t pay for the failures.

Co-op for consulting actually seems like it could work.

[Aurornis]

> Co-op for consulting actually seems like it could work.

I made a comment about exactly this in the thread. This is where a lot of co-op ideas go, but they run into friction when they get to the part about sharing the money around. Consulting is one place where developers can see a direct relationship between their hours worked, hours billed, dollars coming into the business, and dollars going into their paycheck. There are some ideas like putting shared money into a group fund to cover vacations and similar expenses, but generally a consulting group is money-in money-out. Nobody really wants to join a co-op and see the hours they bill go to pay someone who works fewer hours, so the money relationship gets even more tightly coupled than at a traditional salaried company.

[komali2]

> Maybe i’m a cynical capitalist, but I expect everyone to be operating in their own self interest.

Down to explore this with me?

I often wonder if this is self fulfilling. I'm not saying you're selfish, I mean, has capitalism trained people that all people are inherently selfish, and then, within this system where selfishness is rewarded, incentivized further selfishness and continued to sell this myth?

How much maintenance does capitalism take? If human nature is inherently selfish, and capitalism is a force of nature, a ground truth, the answer should basically be no maintenance, right? Is that reality though? It seems to me it takes a lot of maintenance, the myths of capitalism. Look at the incredible amount of resources the USA dedicated to fighting Communism, both explicitly (crossing swords with the Soviet Union) and in the background (overthrowing socialist leaders in south America, meddling in southeast Asia).

Is the key difference for me that led to me making a co-op (rather than a traditional geographic arbitrage agency) that I don't buy into the capitalist notion that humans are inherently selfish? Maybe I just happened to have the experiences that indicated to me that this isn't true, that humans are inherently mostly selfless and social, which led to me researching this and learning that history supports this notion of humans as social-first organisms.

When I tell people about my business, a lot of questions I get confuse me: "You don't require timesheets tracking granular work? How do you know people are actually accurately recording the hours and not 'stealing time?'" the answers are always basically, "because I trust my co-op members," and "I really don't care if people are 'stealing' from me." Capitalism teaches us to always "get ours," but as soon as you let go of that, if people trust me as a genuine actor, they seem to abandon these unnatural principles and work with me honestly, as humans naturally want to.

For your VC example, I mean, nobody will invest in us. Maybe that's the double edged sword - you stop playing within the rules of the game, people won't throw the ball your way anymore. There's no massive value to extract here. That probably limits our ability to rapidly develop some products to generate revenue outside of selling engineering hours. Maybe that's ok though, the business might grow more slowly but sustainably? And maybe that cements our reputation as "no really, actually a co-op that genuinely doesn't put profit first?" I don't know. We'll find out.

But for you, what do you think would happen if you started putting yourself forward as a non-participant, non-self-interested? The prisoner's dilemma equivalent of saying "I will always cooperate no matter what you choose," and then following through on that? Is there a sort of aversion to that knowing that someone might exploit this aspect of you at some point, where you might end up in a situation where your personal profit wasn't maximized?

[bwhiting2356]

I see this as a bunch of unsolved game theory problems. USA vs Soviet Union I just see as a battle of competing empires. There have been competing empires for all of history, we haven’t figure out how not to do that yet.

At the smaller scale, I’ve lived in coliving housing most of my adult life. Mostly positive, but problems that make people retreat away from cooperation. Once a week potluck but otherwise people cook their own food. Chronic mess/clutter/dishes/laundry headaches.

[goatlover]

But capitalism (and communism) are relatively recent economic developments. Most of human history was some form of hunter-gathering where cooperation inside the group was necessary for survival, with varying levels of cooperation and competition outside.

Should note that both the West & East included a lot of economic cooperation among countries within those competing Cold War economic models, even if there was coercion involved (and not just from the Soviets).

[jeffreygoesto]

My personal mental model is that there is a quite bimodal distribution of people in the world. Many seem to see it as a zero-sum game, some others not. As father of a disabled child I come into contact a lot with the latter and can confidently say that there is a LOT to gain once you stop starting to stare at money only. Once your needs are basically covered, giving can give you so much.