Business Development Q3 Proposal

Please note that the proposal has been updated since it’s original posting

This proposal is for the on-chain funding period 01 July 2022 to 30 September 2022.

A quick summary of Q2:

  • 20 Grant Reviews
  • 41 Calls with Teams
  • Went to Austin for Consensus, met Cosmos co-founder, networked with parties across the Cosmos ecosystem
  • Built a framework and a script for outbound dapp acquisition
  • Wireframed, mocked up and built a stand-alone web page for the committee and our efforts { https://www.scrtnetwork.co/ }
  • Set up email accounts for scrtnetwork.co
  • Worked with Brendan at the Awareness Committee to review and coordinate responsibilities
  • Set up and started using a CRM, monday.com, updating all contacts in conjunction with foundation
  • Wrote and posted the Business Development Charter {Business Development Charter}
  • Worked alongside Brendan (Awareness Committee}, Skrillah {Awareness Committee} and Guy {Secret Labs} in going after, reviewing and gameplanning Terra dapp acquisition post network collapse
  • Hired a jr. lead, Marty, as our first hire (will help our joint committee effort)
  • Explored and researched best product-market-fit dapps for Secret
  • Researched web2 recruiting opportunities for Secret
  • Nurturing ~100 leads in different stages that we are actively moving down the funnel

We serve as an independent community led organization that professionally greets and speaks with all inbound inquiries. We’re professionals that help walk teams through the nuances of the network - it’s a vital service we’re providing to the chain.

In addition to this, the main thing we realized in Q2 was that the grant program was insufficient for many teams (either they weren’t qualified or a grant wasn’t enough money for their needs). We need to engage and bring in outside investors to invest in Secret dapps. That’s our main focus for Q3.

Goals and milestones for Q3:

  • Reinitiate ecosystem fund contacts, begin to develop and nurture relationships. Bring in new investors and nurture new relationships for builders on Secret
  • Start writing out a semi-monthly newsletter for investors highlighting our builders
  • Start a telegram announcement channel highlighting teams building on Secret
  • Begin forming a rough structure for teams looking to build on Secret. Mentorship and content available in different verticals (marketing, strategy, engineering etc.)
  • Scale our outbound outreach efforts to have a better selection of teams looking to build on Secret
  • Scale our outbound outreach efforts to acquire new investors interested in investing in dapps looking to build on Secret
  • Standardize inbound intake process with an intake form
  • Combine CRM with Secret Labs instance. Institute proper permissions on boards and organize groups properly
  • Standardize fields in CRM, begin building out forecasting charts

Our primary milestone is that by the end of Q3, we have a clear picture and can present what our new version of the “ecosystem fund” will look like and the structure that we’ve developed for teams looking to build on Secret. We want to do anything and everything we can to help the dapp layer and ecosystem of Secret Network.

Primary KPI’s moving forward:

  • First touches (number of initial contacts made with teams/VC’s prior to qualifying}

  • Qualified Leads {number of qualified investors/teams we speak with}

  • Proposals {number of proposals sent/received from investors or pitch decks from teams}

  • Closed Deals {number of teams we get funded}

Business Development Committee budget:

Dan: $65/hr x 25 hrs/week = 19,500

Jay: $65/hr x 25 hrs/week = 19,500

Discretionary budget: 10,000

  • ~ for potential needed services (contractors on an as-needed basis), softwares (Calendly, Google Workspace etc.) VC meetings, conference tickets

We’ve greatly reduced our ask due to market conditions. Additionally, we are going to begin internal and external dialogues to explore alternative funding paths to ease the burden on the community pool moving forward.

Total budget: $49,000 + 10% buffer based on SCRT price today ( ~$1/SCRT) = 53,900 SCRT

4 Likes

I support the proposal.

Though it would be good to hear more details on what responsibilities this version of the dev committee assumes.

2 Likes

Thanks for the feedback, we’ve fixed that now.

The prop has been updated since it’s original post

I’m gonna respond in more detail about the proposal later, but for now I’d like to step in and state that especially in this market, we should be extra careful when paying recurrent, hourly-based fees. I’m not at all saying we don’t do it, but I do believe the bar for accountability and justification needs to be higher.

Necessary improvements to spend proposals

Several top of mind/easy guidelines that apply for this proposal and any other on-chain funding:

  1. Hours/week: These often seem inflated. Certainly, no one should ever request more than 40hrs/week (full-time basis) and even that is extreme. For someone to ask funding for a full time position, they should:
  • Not be working anywhere else and focus all of their time on Secret
  • Not be receiving any funding from other sources like SCRT Labs grants or delegation

In general, the total number of incentivized pay from all funding sources in Secret should not exceed that of a full-time position, and even that is ONLY in the case that a person is again, putting their full-time into Secret (which is highly encouraged, but should not be exploited).

  1. Hourly rates/discretionary budgets are often inflated to account for downside risk in a bull market. Even though we are still in bear, it’s fair to argue that SCRT is oversold and not at FMV, providing mostly long term upside benefit. For this reason, hourly rates/discretionary budgets should be lower than average right now, to account for the asymmetrical upside. My sense is that people continue to ask for inflated $ amounts similarly to when SCRT was at $7-$10.

  2. Better KPIs that are more strictly enforced. I don’t think it would shock anyone if I admittedly say that KPIs/achievements across the board of most on-chain funding requests have been lackluster. This needs to change.

Specific feedback for the Business development proposal

On top of the general requirements above, here’s some more specific feedback regarding this proposal. It’s in-complete, and I may have more to say later, but it’s important to share some initial thoughts.

  1. KPIs should include # of closed deals and not just number of calls. Other metrics that correlate with bottom-line benefit are important.

  2. Not sure BizDev justifies 3 people at this point. I would like to see milestones that generate enough value to the network such that it justifies growing the team, not just spending more.

  3. Development committee inclusion - I don’t see the value of starting to pay before the foundations are put in place. Secret incubator is a very early idea that isn’t even yet worth sharing publicly on chain. Office hours are something that you put 4 hours a month on at most. This entire section feels premature to me.

To be clear, I do see the value for #3, just not yet and not sure how to quantify it. Do we need 1 person putting 5 hours a month here? or 2 at 80 hours? Unclear

4 Likes

Dan i want to thank you for pushing a new and improved structure but I feel this proposal is very thin and lacks concrete plans/KPIs (especially for the development committee section).

I dont think the community has any way of valuing the work needed from Lumi and Xiphiar to complete the above stated goals. For a combined funding effort i also expect a combined charter, which is not created so far AFAIK. I know you guys have great ideas as to why these committees should be combined but they do not translate to text. I also think it is strange that the most business focused development committee lead @gino is excluded in this proposal, maybe you can clarify that decision.

Additionally I would like to get an estimation of the time spent following up on SCRT labs specific leads/grants. I no longer think it is fair that the chain is paying for the Bizdev committee fulfilling tasks top down coming from SCRT labs. I have no way of verifying how much time the Bizdev team spends on grant reviews but I hope you can find a way of quantifying that effort to the community.

I think Guy already made a great post about total paid hours spend. To piggy back on this: I asked the dev committee last quarter to add all their working hours for Secret Network in to the proposal for transparency. This means each member should highlight where they spend their full workweek - Community pool spends, SCRT labs grants, validator+ other work, committees etc. I do not think it would be weird to add this requirement to the Governance charter if other people think it fits. The detail given right now for the dev-hours is nice but i highly doubt you can control that detailed division.

5 Likes

I’m gonna disagree with this a bit. The hourly rate, especially for devs, has been cut over 50% already (from $150/h to $70/h). If the main issue is that you believe the committee will sell all the secret right away, causing the price of secret to fall even further below FMV, couldn’t the committee just vouch to lock the funds, with the exception of the Discretionary Budget and the CCRs, into a contract for say till Q4? That way the value of secret has time to get back up. I do agree with your other points tho.

1 Like

The dev committee hourly rate per person was $150/hr? A full time salary of $324K/year?

2 Likes

What (approximately) are full time dev salaries at labs? using that as an anchor for devcomm salaries probably makes sense, if you’re comfortable answering (def get if you aren’t but it’s useful if you are)

I’ll be honest, at first the rates seemed high to me too, but after looking at the rates that companies in the us pay to attract top talent I quickly changed my opinion :slight_smile:

a senior software engineer at apple makes on average $315,881, $340,280 at amazon and at facebook the number gets crazy, at $387,460

Why are we comparing to senior software engineers at the biggest tech firms in the world?

4 Likes

Yes but anybody who wants to make a boat load of money each year will say they are top talent…. So there is a problem here still.

I mean you can have that opinion, which is fine, but the argument that I was making is that the current rate of $70/h is extremely competitive, especially when compared to the original $150/h.

I don’t necessarily disagree with you that anyone will call themselves top talent to attract those rates, and I completely agree that we should scrutinise every claim made about one’s talent, but at the same time, I also believe that the dev committee demonstrated that they have both the skills and the leadership required to make that claim and despite that chose not to.

Especially considering that there aren’t many people on Secret Network willing to take on this role that also have the skills conducive to doing this well

Hi. For those who have been asking about the BizDev/Dev committee merge in regards to our current Dev committee funding proposal: the merge is no longer occurring and we will be returning to running individual committees but with collaboration between the two.

some things which could be improved are twofold:

  1. expectation setting, rather than just “We’ll see if there’s an appetite”, knowing that you will fit into some schedule and when the next follow up will be, where the outcomes are somewhat defined will make denials easier and acceptances less frustrating

  2. are there any synergies between teams where the parts could be worth more as a whole by promoting cross-team collaboration. When you have the birds-eye view it would be possible to schedule integration meetings between people with common interests etc. prior to making the funding decision, maybe they’ll come back with something much better

my point being that even if you decide that a specific proposal isn’t worth funding, if you say ‘No’ without trying to salvage the effort and skill involved it is a wasted opportunity, but also knowing that in exactly 1 or 2 weeks we’ll get back in touch and give you an answer - even if it’s getting on a conference call and talking it out… that’s much more valuable than the current approach.

Proposal looks good! I heard that Marty is going to be on boarded as a contractor. Looking forward to seeing what you 3 achieve!

1 Like

Hey guys,

Grant reviews is listed as the first accomplishment of the past period. can you give us an estimation of the time spent on this specific task? This work is clearly in-scope for SCRT labs and i think it is important that the community pool can asses how much of their funding is used for tasks withing scope of SCRT labs.

Besides this could you give the community a timeline on the new bizdev initiative? What does it need to succeed, do you expect it to be done before the end of this funding period?

This proposal was edited slightly before it went on-chain, this makes the time to discuss the details limited and removes the possibility of suggesting changes. I am sure that if we all monitor this thread pro-actively a 7-day period is still enough.

Final thought, how many of the “closed deals” are funding initiatives ultimately funded by SCRT Labs and the Ecosystem fund respectively. Would be great if we can see more funding come from external teams.

I don’t have a whole lot of stake-weight, but I voted Yes to the on-chain proposal; then immediately came here.

I think a privacy-oriented project should absolutely practice what we preach. I believe it is future-valuable to spend some of the discretionary budget to switch to privacy-respecting alternative services (even if requiring self-hosting) to data-harvesting services such as Calendly, Google, Amazon Web Services, et cetera.

We’re privacy people. We capable walking the walk; not just talking the talk. We should do just that; and proudly advertise it.

I am available (for zero-cost; but accept donations) as a consultant to help choose, but not set-up, appropriate services; except from end-July to end-Sept, when I will be away at my remote “day job” and have zero access to internet.

1 Like

Can the community get a comment from the Bizdev committee leads on this forum chat? You guys changed the prop, went to chain and yet there has been no comments here so far.

2 Likes

Grant reviews is listed as the first accomplishment of the past period. can you give us an estimation of the time spent on this specific task? This work is clearly in-scope for SCRT labs and i think it is important that the community pool can asses how much of their funding is used for tasks withing scope of SCRT labs.

We don’t have a time estimate on grant reviews, but grants are typically reviewed jointly between Yonatan and Jay. That being said, the grant process is slowing down dramatically so will be significantly less time moving forward

Besides this could you give the community a timeline on the new bizdev initiative? What does it need to succeed, do you expect it to be done before the end of this funding period?

We hope to have a clear structure with relevant stakeholders in order by the end of Q3.

Final thought, how many of the “closed deals” are funding initiatives ultimately funded by SCRT Labs and the Ecosystem fund respectively.

All deals in the past were funded via SCRT Labs grants. That’s the reason for the new initiative.