MIT professor Thomas W. Malone wrote in a Harvard Business School Knowledge paper that innovation is the key to succeeding in the modern knowledge economy. Still, innovation suffers, as the fundamental decisions are centralized at big businesses and go through several management layers, thus extending the approval process.
POTS is the game-changing concept
Product-oriented token sales or POTS averts all the difficulties with ICOs and engage the investor at a far secure point. A recently launched, on-demand advertising portal WeBuy, has come up with this concept to provide a more transparent and realistic funding option for the investors.
Milestone to Milestone
POTS-based funding is more transparent since it covers one milestone at a time. WeBuy’s first round of funding is for a specific task, the initial project launch that would require a base amount of two million dollars ($2Mn).
Unlike the ICO model, WeBuy’s POTS model is more result-oriented than accumulating money for the business. The approach is reinforced into the system through the milestones, and the results from one are presented for the next POTS funding round. It keeps the ecosystem result-oriented providing a relief buffer for the investors.
Why Does POTS Matter?
ICO scammers have run away with over one and a quarter billion dollars ($1.3bn) in the past two years, and this was possible because of the absence of a clear pathway, such as the one presented by WeBuy POTS.
On the other hand, the growth of big businesses can hurt small-business’ profitability. Big businesses can deploy more marketing professionals and product designers to gain market share in emerging industries. Small businesses are usually at a competitive disadvantage because they do not have comparable resources.
POTS will enable companies, startups and newbie businesses to cut through the competition and experience a new way of crowdfunding. Following the success of WeBuy platform, many businesses will wonder about the importance of POTS. POTS approach to modern funding system is to gather and engage additional players to manage crowdfunding in a more result-oriented manner.
On-Demand Relationship Between Seller and Buyer
WeBuy aims to bring 10,000 stores to join the platform during the first POTS stage. A joining grant of five hundred dollars ($500) provides the SMEs a possibility to join a new era of advertising and experience the first steps of the on-demand relationship between seller and buyer.
In terms of budget requirements, this stage would cost about half a million dollars ($500,000) with an additional expected cost of up to two million dollars ($2Mn) for the pilot.
After the demo version, WeBuy plans to release the first operational WeBuy platform in June 2019, have at least one local community using WeBuy, have a market penetration strategy ready based on real-time testing, and have accurate budget estimates for stage 2 of POTS.
Be sure to consult the whitepaper for more details and a breakdown of expected expenses.