What do I get back from the collective income share pot?
All funds from your cohort's collective pot (i.e. 50% of Tech Collective cohort revenues) will be distributed equally amongst your cohort (even those not currently paying into it, either through capping out their contributions or falling beneath the income threshold).
If you're all earning the exact same, then this is effectively an immediate 50% rebate on your payments. If earnings are unequal, then the effective rebate will be larger for some and smaller for others.
We think that distributing this pot like this is important because:
It pools your career-change risk amongst a group of motivated peers
2It aligns incentives, such that peers have a direct interest in helping you succeed
3You learn and earn together, symbolising the Tech Collective Values
However, we acknowledge that this means there is a risk of outsized payments for some.
We seek to mitigate this through:
a 3 year and £5k cap on payments, so you aren't tied down in perpetuity
a rigorous application process, which includes all prospective members vetting their prospective peers - so you get to vet the people who you'll be sharing your income with
Worked example 1: relatively even payments
The below example documents a one-month snapshot for a cohort of 8 people who are earning relatively evenly. It assumes that nobody has yet capped out their payments.
| Gross salary (annual) | Repays? | Monthly payment | Share of pot | Net payment | |
|---|---|---|---|---|---|
| Ali | £40,000 | Yes | £300 | £127 | £173 |
| Brooke | £40,000 | Yes | £300 | £127 | £173 |
| Cora | £35,000 | Yes | £263 | £127 | £136 |
| Dexter | £35,000 | Yes | £263 | £127 | £136 |
| Elias | £30,000 | Yes | £225 | £127 | £98 |
| Faye | £30,000 | Yes | £225 | £127 | £98 |
| Grace | £30,000 | Yes | £225 | £127 | £98 |
| Hugo | £30,000 | Yes | £225 | £127 | £98 |
Total paid £2,025
Shared pot £1,013
Worked example 2: relatively uneven payments
The below example documents a one-month snapshot for a cohort of 8 people who are earning relatively unevenly. It assumes that nobody has yet capped out their payments.
| Gross salary (annual) | Repays? | Monthly payment | Share of pot | Net payment | |
|---|---|---|---|---|---|
| Ali | £80,000 | Yes | £600 | £136 | £464 |
| Brooke | £60,000 | Yes | £450 | £136 | £314 |
| Cora | £50,000 | Yes | £375 | £136 | £239 |
| Dexter | £35,000 | Yes | £300 | £136 | £164 |
| Elias | £30,000 | Yes | £225 | £136 | £89 |
| Faye | £30,000 | Yes | £225 | £136 | £89 |
| Grace | £25,000 | No | £0 | £136 | -£136 |
| Hugo | £0 | No | £0 | £136 | -£136 |