Archive for the 'Finances' Category

What To Do With The Extra Money?

Couchsurfing’s strategy is “not sustainable”, concludes a Couchsurfing interim marketing consultant in a presentation given in San Francisco last Summer. “In order to keep cashflow, you would need to grow all the time”.

The consultant Mirek, also a CS-member, served at Basecamp from 16-21 July 2009 for Gadget and Matthew Brauer. The presentation of his ideas and conclusions can be found online (pdf, odp ).

Some Couchsurfing Facts from the presentation:

  1. CS has 15-20 thousand new users each week
  2. 5.6% of them pay verification fee of 26 $
  3. That makes more than 20.000 USD flowing in every week = ca. 1 mln USD a year.
  4. Expenses = 700-800 K USD
  5. 200.000 USD of surplus, and growing…
  6. Big Question: What to do with the extra money?

Mirek has some nice other nice observations about the organisational model of Couchsurfing. “Your present structure is based on a ‘family business’ model: tasks and responsibilities are ‘automatically’ assigned to people (mainly insiders).”

He advices to give it more structure, to have better defined functions and thinks it is a bad idea “to pay salaries to people staying [at Basecamp] up to one year, even if you have enough money. This would spoil the CS atmosphere and cause lot of formal (legal) obstacles.”

Interesting enough, Mirek explains to see donations as “a loan of trust”, which CS has to repay, “by improving the value you bring to CS users.” Couchsurfing should do that by “improving the website and services” and the organization, “so you are able to create a better product”.

Why sponsoring CS doesn’t work

Quite interesting, my first Ghanese spammer. And the proof why registration for Couchsurfing doesn’t work:

Schermafbeelding 2010-01-03 om 10.40.00

Too bad that CS doesn’t use SpamAssassin. But what about the profile (https://www.couchsurfing.org/profile.html?id=BFUS6VU)

Schermafbeelding 2010-01-03 om 10.41.45

Why is a African person being able to “have a secure profile”, while everything is against him? Another proof that registration and sponsoring CS doesn’t make the system safer?

(Needless to say: I spammed the account…)

Have a great – and safe! – 2010!

SPOF’s as source of income

I wrote earlier at this blog that development at Couchsurfing isn’t the most stable part of the network. Today, lack of communication, as well as a simple programming error made a well respected member of the community leave. This can be read at a post by Thomas, as well as on the original source.

What really amazed me was the reason of the leave: a programming error, and not one, but one of many. I quote:

Another issue that was concerning me were bugs with simple fixes. Europeans consistently use commas to separate dollars and cents. However, many transactions were processed incorrectly, due to the comma. A member would attempt to donate 21,50, and 2,150 would be charged. Then it’s up to the member to notice the error, since we did not mail out receipts. I attempted and notified the LT that we should fix this ASAP, but it didn’t take top priority.

To be honest, I do not fully agree with Thomas stating that this is a scam, but I’m surely interested whether all the money is payed back as it should be. The programming error also makes clear that the creditcard-payments are handled at couchsurfing.com itself, instead of a payment broker. I’m not very clear if I would be glad to be a verified member…

Verification Team Leader resignation

It’s been a while since I’ve done any posting on OCS, but I stumbled across this post from the previous Verification Team Leader which provides invaluable information from the inside. It’s a long and painful read, but here’s what caught my attention the most:

  1. The Verification Team Leader himself admits that verification is a financial scam. There have been a lot of articles about this on OCS already.
  2. The sexual atmosphere at the collective has become even more out of touch with the real world and what Brian describes is absolutely cult behavior.
  3. Brian has only been volunteering for a year and he already writes: “And from what I read and gather, that’s fine by the LT. Seems that long-term volunteers are a pain in someone’s ass… not that they remember how CS was, but because they state issues, they are seen as trouble makers. I’m now one of them, I suppose.”

Welcome to the world outside of CS Brian!

The original post, now saved for prosperity and googlification:

I am attempting to abide by the guidelines within this group. I share here my letter to Jim and Casey for the reasons why I resigned as the Verification Team Leader, as many Ambs wrote to me off-site and asked for the ‘real reason.’ Here it is.
================

Dear Jim and Casey:

As you know, I’ve resigned as the Verification Team Leader. I currently remain on as a City Ambassador, NMW, CUQ Team Member, and co-moderator of the CUQ Team, unless you decide that it is not to be. I’ve always realized that this is your site, and the volunteers have very little to do with the direction that CS takes.

When I resigned from the verification team, it was a quickly written message to you. I had logged on, noticed yet another bug within the verification system, and realized that it was time for me to move on. I immediately remembered the bug of July 30 and 31 where everyone who tried to donate did so over and over, so their money was taken several times, many more than ten, but their profile was not updated. That bug immediately cost twelve man hours and we refunded almost $35,000 to members. I did not want to repeat that thankless amount of time working for free, with a ‘thank you’ given as a token gesture.

My thoughts of resigning actually began the week that I spent in San Francisco, at Base Camp. Jim and I spent a couple of weeks back and forth on email, trying to see if a ‘couch’ could be found for me at Base Camp. Mind you, this was not to be just a vacation for me, but Jim and I were going to work together to get me better trained. Back and forth the emails went, and the final note was basically, “We’ll house you somewhere… if you’re willing to sleep on a couch, then we’ll have room.” Not expecting anything else, I truly appreciated the housing accommodation as any true surfer appreciates an offer of accommodation.

The first weekend I was in SF was SF Gay Pride and I stayed with another CS friend. She also had another surfer (I’ll call her, D, as she has a starring role in this saga) for the weekend. We were invited to a CS brunch. Knowing that D was looking for longer-term couches due to a yoga class she was taking in SF, I introduced her to a group from BaseCamp at the brunch. When I mentioned that D was taking classes for Yoga, a couch was immediately offered to her at BC. And for a “week or so.” Mind you I had been emailing back and forth so that we could get some work done, but here was a young, cute lesbian who knew yoga, and she had a couch without any checking. Hmmm, didn’t someone say awhile back that if you’re cute and young……… and I’m sure one LT member would be very welcoming, in his mind.

A small side item… shortly after my visit, Jim, you requested a “friend” link. We were never friendly. We were friendly enough talking about work, etc… but while I visited SF for a week, you never once attempted to get to know me, to become friends.

I’ve coordinated volunteers for years, with many different organizations. Typically, an organization seeks to appreciate, thank and motivate all of it’s volunteers. I’ve never known an organization to house, feed and pay any of it’s volunteers. There’s never been (in my experience) an attempt to make the volunteer jobs of remote volunteers any better in this organization… not so if you’re at base camp. Meetings are held about how to make the dull volunteer’s jobs and lives better. More parties? More travel? More roadtrips? More alcohol and drugs? Perhaps you need more rooms for casual sex or perhaps an orgy room?

There are 100′s, perhaps 1,000′s, of volunteers who put in many hours in support of The CouchSurfing Project. 99% of those receive nothing in return, except perhaps an Ambassador flag. These volunteers work countless hours answering member questions, responding to issues, groups management, event management, locations management, AST/AMT, Ambassadors, spreading the word, and working remotely on Tech issues, and, until recently, assisting members with the Verification Program. Yet, there are a very few special volunteers who CS seem to revolve around.

These ‘core volunteers’ who live at BaseCamp or one of the collectives (mind you many may not have had a profile before becoming a ‘core volunteer’ or their profile had few references, vouches, or perhaps they hadn’t even become verified — profiles that I would be hesitant to surf/host with…) are asked to help make decisions (by voting at BC) and other important issues, but they seem not to be surfers, at all. Most seem very unwelcoming… that another someone is invading their secret society at BaseCamp. More than one person has said of BaseCamp, “they don’t seem like surfers.”

And if you’re tired of living in San Francisco, by all means, go to Costa Rica, or even to Turkey, where we can show even more appreciation to those we’ve already shown appreciation to. While “collectives” are said to be a mechanism of reaching out, most have their doors closed — except to a special few. And by the way, CS will pay you to go ‘home’ to your new house. My understanding is that to even be considered for Turkey, you’ll have had to do at least 3 hard months at BaseCamp or Costa Rica. Wow, things are hard! We’re sorry, let’s let you go to Turkey for awhile.

Many feel that the “volunteers” who live at BaseCamp are spoiled and self-righteous. Many also feel that they do not represent CS well, as many do not seem to be “surfers” at all. Many also realize that nepotism helps you to secure a spot. It’s been stated over and over that “who you know” has no bearing on who is ‘invited’ to live at BaseCamp. I don’t think so. Mrs. Gadget has housing and a position. Jim’s girlfriend has housing and a job. *Please NOTE that I have NOTHING against neither Ms. Gadget nor CaseyAnn personally.* A former house manager was a friend of TTT’s (so it’s been reported).

And not just housing, by the way. We’ll also give you a job! And a title, perhaps. Let’s not worry if you know nothing about Human Resources, Volunteer Coordination, or have no accounting background. Many members and Ambassadors also believe that it helps someone secure BaseCamp status by returning sexual favors. At least you have the rooms/space set up for it.

I’ve never been to a non-profit’s headquarters where there were rooms specifically for sexual encounters. And it comes with anal beads, mind you. Don’t get me wrong… I am a Sex Positive person. but when positions and housing and food and travel are given because of this, then the word volunteer should be changed to another word, meaning the exchange of sex for cash or other tangible items. Do you think the American Red Cross has anal beads anywhere within their headquarters? I realize we are not the same, but still.

So, if you volunteer at BaseCamp, you’ll be rewarded richly. You’ll be housed in one of the most expensive cities in the US, or live in an international location with all the amenities you could never afford yourself volunteering.

The prior verification team leader received an amount for each verification. It makes sense to motivate this person. They are your key to income. Due to poor communication and no technical help, she resigned. I was asked to step in, and I did so. Mind you, I was never told about an “incentive” nor asked if I would like to volunteer at BaseCamp. So be it. The ‘volunteers’ who took the team over, 3 of them, will all be rewarded richly for their ‘hard work and dedication.’ They will be at BaseCamp, even though one is out of the country now so that the US government doesn’t catch on to what’s happening. I doubt the volunteers at BC actually tell Customs they are entering the US to be “paid” in housing and ‘stipends.’ Seems contradictory for a non-profit trying to gain Tax Exempt status to guide ‘volunteers’ on what to say so that the same government doesn’t block their entry into the US.

So, enough about me feeling sorry and not good enough to warrant an inquiry as to whether or not I’d like to be an “appreciated” volunteer and live at BaseCamp. We’ll bring in the store manager and let them stay a good 8 months, but not to worry, no work needs be done.

Many, many times I’ve answered members questions when they request a variance from the verification team, that “what we do for one, we must do for all.” CouchSurfing does not believe this. Let’s highly reward a very few, and the idiots who continue supporting our ‘chosen’ ones, will continue to do so, or leave. Not to worry, there are 1,000′s more who would love to give their time, energy and love to CS as others leave because they are tired of the BS.

Then comes the issue of disrespect to the volunteers who work their ass off to help us protect ourselves. Recently, a highly-respected long term volunteer left a negative reference for an LT member. Hers was the second negative reference. Both centered around inappropriate conduct. Almost immediately, the reference was removed by an LT member. NOT from the volunteer team with the responsibility to handle such issues — the MDST — but by a leadership team member. The member rewrote the reference, and it was put back onto “His” profile. Then, yet another LT member removed it. Mind you, if it were any of the 1,000′s of other volunteers NOT at BaseCamp receiving the reference, we would have had to wait until the MDST completed their review, and rightly so. But, if you “volunteer” at BaseCamp, then references don’t matter, it appears that an LT member can just delete ones they don’t like… regardless of whether it is factual or not. Again, what we do for one, we must do for all — does not apply.

Long-term volunteers are leaving in droves. I do not count myself as a long-term volunteer… I’ve only been volunteering the last year or so. And from what I read and gather, that’s fine by the LT. Seems that long-term volunteers are a pain in someone’s ass… not that they remember how CS was, but because they state issues, they are seen as trouble makers. I’m now one of them, I suppose.

Another issue that was concerning me were bugs with simple fixes. Europeans consistently use commas to separate dollars and cents. However, many transactions were processed incorrectly, due to the comma. A member would attempt to donate 21,50, and 2,150 would be charged. Then it’s up to the member to notice the error, since we did not mail out receipts. I attempted and notified the LT that we should fix this ASAP, but it didn’t take top priority.

Then there’s the issue where members were using other person’s credit cards and the cards were approved. Even though the names did not match. Changing the wording from “Name has been checked” to “Identity Checked” doesn’t quite cut it, in my opinion.

The push to hit up members within their first few hours of joining is an attempt to raise funds, not to make the system safer. Period. It’s for money. Sadly, I believe that the same amount of money could be raised by asking for a donation, simply and plainly… but you seem to not want to ask for funds to keep the service ad-free and running… but calling it ‘verification’ seems to rid you of the guilt in asking for funds.

So, with that, you have my ‘real’ reason for resigning. If you’d rather I not volunteer at all, I’ll understand. I still believe in the spirit and ideals of CouchSurfing and love meeting other surfers and hosts. I do not have to be a volunteer to do that. I will remain on to help other Ambassadors and community members.

I would like to train future ambassadors on how they can best serve the community, our fellow surfers and hosts. I also wish to remain on as a co-coordinator of the CUQs… again, to help my fellow members and ambassadors.

However, I leave that to you. Either way, I’m happy to not have the stress and pressures. I never could fill my predecessors shoes, and 3 replacements will have a difficult time in filling mine. But now that they are all “corporation volunteers” they will fall in line, or lose their ‘core volunteer’ status, not to mention their housing, food and travel expenses.

Casey, this is to you personally. I believe you have great ideas and a great site here. But I also believe that you have advisors who advise you incorrectly. I believe that they only have their best interests at heart. You have an LT member who actively gropes and fondles females… female volunteers, and female guests. Many, many times we lowly members and volunteers have heard of how he places his genitalia on other volunteers’ keyboards. Again, I am not a prude… I’m a sexually positive person and believe sex should be enjoyed — with a consensual partner! He gets away with it, but it will come back to bite you in the ass. He will grope the wrong person, and there will be a price to pay. Please do not be like the Catholic Church and shuffle this person off to a place where women are traditionally treated like material objects… where his gropes will be just as emotionally damaging, but where the objects of his unwanted advances will probably not speak out due to cultural issues. Don’t put a wolf in the chicken coop. You already have one ambassador within walking distance of CS who won’t speak out publicly about the things this person has done to her, and in her home. Is this really the best you can do to coordinate/energize your Ambassador corp?

Sincerely,
Brian

Flowerpower!

Found at http://www.couchsurfing.org/careers_openings.html#Gardener_/_Landscaper:

Gardener / Landscaper

Purpose:

  • Creates beautiful outdoor spaces for the well-being of CS volunteers, personnel, and guests.

Responsibilities:

  • Create flower and vegetable gardens from scratch
  • Build any needed irrigation systems
  • Build bushes, vines, or related plant-based privacy screens
  • Establish house plants
  • Train residents how to maintain landscaping

Requirements:

  • Extensive knowledge of local weather and its effects on landscaping
  • Extensive knowledge of appropriate indoor and outdoor plants for various uses

Verification ticks on images

Today I noticed that a green tick now appears on the images of CouchSurfing members who have paid for verification. I notice these ticks on groups, I assume they’re all over the site. Wherever you see a thumbnail picture of a person, it marks who have paid and who have not.

This continues what Jim Stone started back in New Zealand all those years ago. A campaign to drive verification revenues ever higher. Given that you only need to pay once to become “verified”, CouchSurfing International Inc rely only on a continual stream of new members to make “donations”. If they can increase the percentage of people “donating”, more money for the coffers.

Perhaps we can subvert this new feature by framing our own profile pictures and adding a different symbol to donate that we opt out of the so-called “verification” system. We could even combine that with a real verification system based on the verification of actual identity and physical location. Food for thought… :-)

CS 2008 Finances

Today I noticed that the CouchSurfing 2008 finances have been updated for the whole year. I whipped up a graph to show where the money goes.

cs-financials

Employee related expenses account for 62.8% of total expenses. In that figure I’ve included salaries, tax, payroll fees, rent, travel, food, and staff development. Admin expenses includes anything not in hosting / verification. Hosting is server costs plus telephone / communication. I suspect most of the telephone / communication expenses belong in Employees, but I left it there to be on the safe side. Finally, verification, the source of 99% of the income, costs only 6% of total expenses. I included printing and mailing in the verification cost.

The numbers are:

Employees: $405’440.59
Admin Expenses: $116’901.33
Hosting costs: $86’723.33
Verification: $36’589.83

It costs more than $400k to staff CS Inc with how many employees? Five? That would be a cost of $80k per person per year.

Hopefully this helps to understand where the money goes.

www.BeWelcome.info – the real background!

This blog is mostly run by BW-lovers with a clear agenda (make CS and HC look bad so their “oh-so-moral” alternative looks attractive). For all others, who still have a somewhat open mind and don’t fall so easily for Kasper & Co’s constant propaganda, here a link to our side of the story:

http://www.bewelcome.info

The real background about this “democratic, transparent, legal” (sic) network.

Managing Corporate Sponsorships

Why would CS need someone able “to raise funds of more than $100.000″? Why was Matthew looking for someone with “demonstrated success in negotiating and managing corporate sponsorships” to participate with the collective in Alaska?

The person who got the job, the new Fundraising Guru, wants “to engineer and implement a comprehensive, sustainable fundraising and PR strategy which will enable the CS team to maintain, develop and promote CS, and its services, well into the future, in the most economical and efficient way possible.” Uhm, will CS be sponsored by a travel company soon, or is it just a solo idea that came out of the hood of Matthew? Why would a CS fund-raiser need that specific skill-set?

2008 Q1 finances

“I hear servers and domain names are really expensive to maintain, and that some of the ones working on it, especially the full-time employees, are really hard-working, so deserve to be on a payroll. That fact is hard to disagree.. But at the same time, i wasn’t happy to hear that some especially coveted members in the core CS circle get their flight costs to get to the collective covered by the money raised from our donations. And that, just to get someone they really like having around to join them and be their private cook!”

Regarding finances, check for yourself, the finances of the first quarter of 2008 are available. Salaries are the biggest post on the expenses side. That doesn’t include flights and other costs of Collectives. Less than 10% of the income is used for servers and there was a surplus of almost 60.000 US$.

7220 • Salaries of Professional Staff
19,384.68
7250 • Payroll Taxes
1,955.63
7260 • Workers Comp
139.02
7515 • Bookkeeping Fees
1,512.50
7520 • Accounting Fees
449.12
7525 • Bank Service Fees 8,221.52
7530 • Legal Fees 9,867.59
7540 • Web/ Internet/ Host Fees 2,960.59
8110 • Office Expenses/ Supplies 3,195.01
8130 • Telephone & telecommunications 2,208.03
8140 • Postage, shipping, delivery 5,730.80
8160 • Equip rental & maintenance 13,923.46
8170 • Printing and Copying
14.55
8210 • Rent, Parking, and other occupancy
4,777.81
8215 • Building Repair and Maintenance
215.00
8220 • Utilities
917.73
8305 • Auto/ Fuel Expense
48.31
8310 • Travel 6,223.67
8320 • Meeting Expenses
798.64
8330 • Meals/ Groceries 10,895.37
8520 • Insurance – non employee
138.60
8540 • Staff Development 3,589.10

(note: meals and groceries were bought in Thailand!)

“I take it that back when CS was a more grassroots thing (correct me if i am wrong), all collective volunteers had to find their own way of getting to them. And that all the work was done pro-bono, even those who were working on improving CS on a full-time basis. In such a case, i wouldn’t think it’s fair that there are people on the payroll now, but those who helped cs in the initial startup days don’t get shit for all that they have contributed… “

CS never was very grassroots. PEople (like me) just tried to move it there. Casey has received a 2000 US$ per month salary ever since there was money coming in. It’s always been under control of Casey, and later Casey and his close friends.

I think paying some people is fine. Though, only people who are really needed, e.g. system administration to keep the site up 24/7, and further, let the community decide where their money is used. Whenever there’s a donation, add some checkboxes where you can give options where the money can go after the basics (administrative stuff, server costs, basic legal costs) have been covered (e.g. none, publicity, collectives, salaries for casey’s friends, food and lodging for groupies).

And don’t pay 2000 US$ per month plus expenses plus flights plus food and lodging. During a stay at a Collective it’s extremely easy to not spend more than 300 US$ per month…

Apart from the flights to and away from New Zealand (800 US$) I hitchhiked to the three CouchSrufing collectives I worked at. The laptop I bought to work on CS (1000 US$) broke quickly after I stopped volunteering, because of an extremely ridiculous non-disclosure agreement was “leaked” that does not allow working on any similar project (e.g. Wikitravel or other social networks).

BeWelcome will take time to grow. The BeVolunteer organization is already far ahead of anything else in hospex world in terms of flexibility, transparency and democracy. The software is about to follow. 3500 members is already a large pool of active people to connect with.

And note that BeWelcome now has (alpha stage) functionality where all members can verify members, for free. And it’s ID card or passport verification, not just address verification (which can very easily be falsified).

My idea about couchserfing was that it could be used as a vehicle to do much more than just hospitality exchange for college aged low-budget travelers. With so much money coming in and such a huge community behind it it would be extremely simple to set up much more sharing and society enhancing projects. E.g. a good friend of mine who also attended the New Zealand Collective is setting up groundcrew.us. If it would have been done from the inside of CS it would have been big by now. Though, on the other hand, I’m extremely happy that I didn’t accept Casey’s offer to host Hitchwiki.org with CouchSurfing…