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RE: Steemit, Inc. Financial Update

in #steemit5 years ago (edited)

@elipowell, that is great news and we appreciate the transparency and the positive intention. I have just done some napkin math so far came up with this estimate:

Monthly Income:
800K selling @ 0.35 USD - $280 000
AWS/AD Revenue Surplus -$ ~40 000
Total income: $ 320 000

Monthly Expenses:
Rental - $2000
Telephone, Internet, Sundries - ~$3000
Electricity and Water - ~$700
Other combined - $10 000
Total Expenses: $15 700

Nett Revenue before salaries: $304 300 per month, assuming you still have 15 employees, (gerbino, roadscape, justinw, vanderberg, andrarchy, birdinc and yourself are the only ones I'm aware of however.) that would mean an average of $20 286 per month each or $243 440 per annum, I would say only executive (yourself) and blockchain devs should be anywhere close to this, blockchain dev job offers I have seen can be around $150K per annum, Steem is very niche so you could perhaps argue the above max for 2-3 of the Steemit devs, but is still high.

This basically means everyone else is severely overpaid at the expense of the Steem price and the community, bear in mind there are many Steemians from low-income countries that will see these numbers as obscene, and a $10 post value helps them sustain their family for a few days, and it hurts them further as the Steem price drops due to sell pressure.

So not knowing the full extent of your expenses and doing some napkin math, I don't see why a small reduction right now is not possible, I would say even 700K monthly sell off instead of 800K is possible right now at the very least, 600 or 500K is likely possible too.

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Why do you assume that all revenue per month is spent? They never said that this is the case and it likely isn't. At least they should not spend it all if they want to manage the company sustainably.

Employee salary and benefits not included yet


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I'm blown away by the fact that @elipowell has basically been able to cut two of their largest operating expenses by 90% and has begun generating sustainable revenue streams. All the pieces of the puzzle aren't there yet, but labor costs likely can't be cut without cutting employees, which they've already done, regardless of how we feel about how much they're getting paid. Further cuts would likely damage top line growth, which would sink the ship. The real trick here, in addition to shoring up the outside revenue, now will be to trigger a rise in the price of Steem and slow or reverse the net selling by users, which would serve to further benefit the low income folks of course. After what I'm seeing here, I'm feeling confident that they can pull it off. None too soon either.

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That only took someone competent to take the helm. The level of waste on Ned's watch must have been horrific.

What? @ned is the one who hired @elipowell and she is too afraid to announce she is the NEW CEO when this new article states it clearly

https://techcrunch.com/2019/01/23/steamit-reddit-new-boss-rebuild-elizabeth-powell/

Formerly the company’s head of communications and advocacy, Powell has replaced former CEO Ned Scott — who is now executive chairman — at the helm of the business, which has 12 full-time staff.

SO @ned is the FORMER CEO? WHy wasnt any of this ever announced on chain ? SO weird...

Im praying the reason ned is so overconfident and absent is because he has way mroe BTC than steem.... im hoping he is waiting for steem to drop LOWER than it is now its LOWEST EVER price in Bitcoin.... because he knows he can buy it up cheap and pump steem at any time....

I don't know what exactly "executive chairman" means. But I'm guessing Ned is still Chairman of the Board at Steemit Inc because he's still presumably a major shareholder if not the largest one. Eli Powell answers to the board. It was a good move of Ned to step down and hire Powell to manage the company. Ned is a visionary but less effective as a manager. CEO stands for Chief Executive Officer. Managing Director means practically the same.

Ned doesn't need to be at the forefront at this time. It's better that way. He probably still has regular and frequent meetings with the staff in addition to board meetings. Powell is a fresh new face and has been able to turn the company around. She's been a good hire from what I can tell from the published information.

But I'm guessing Ned is still Chairman of the Board at Steemit Inc

HAHAHA dude now theres a BOARD? I was talking about how Ned should step down and just be on a "board" for a while but I didnt think it woudl actually happpen, but tell me who else is on this brand new BOARD of directors at steemit inc? No seriously show me everything you know :D You seriously think they have board meetings? I would be impressed if there was now a board of directors for steemit inc.... why cant ned make a simple announcement about having stepped down as CEO? so many peopel still think he is ceo.... does it really matter?

what matters is who owns the keys to the steemit inc accounts @steem @steemit and etc, and I am pretty sure that is still ned why would he give up control of his keys to other people? So in the end its just ned, ned owns a bunch of steem.... unless elipowell owns some steem no one will respect her...

Of course, there is a board. Steemit Inc is a corporation. Boards are a standard part of corporate governance. In below the post by @steemitblog, it is mentioned that the Steemit, Inc Board as nominated Ned Scott as Executive Chairman and Elizabeth Powell as Managing Director. At the very least, boards exist so that certain formal decisions can be made. And yes, I seriously think they have formal board meetings, at least when key hiring decisions are made.

See:

https://steemit.com/steemit/@steemitblog/steemit-inc-leadership-changes

P.S.

By the way, Executive Chairman is not the same position as that of CEO. A CEO runs the day-to-day operations of the company while an Executive Chairman often acts as the Chairman of the Board and also in an advisory and supervisory capacity in co-operation with the CEO.

what matters is who owns the keys to the steemit inc accounts @steem @steemit and etc, and I am pretty sure that is still ned why would he give up control of his keys to other people? So in the end its just ned, ned owns a bunch of steem.... unless elipowell owns some steem no one will respect her...

He couldn't treat any company-owned accounts like his personal property without facing the possibility of criminal charges.

He couldn't treat any company-owned accounts like his personal property without facing the possibility of criminal charges.

WHAT? I dont think you understand how any of this works or how ownership works lol

Also do we even know if steemit inc owns the steem or does ned? its ned , he usesd it whanever he wants to, like to flag @dan 's post "for aggrandizement" yeah he used the official @steem or @steemit account to do it and give a $2K flag are you saying that was a personal use of company funds? :D

come on man your just trying to use big words and sound important and also this is teh first anyoen has ever heard of a steemit board in public by the way... all of it is just ned and his friends making up titles... none of it matters when steem price is this low...

we STILL have no idea the official title of ned or eli.... between me you and that article theres multipel answers as to whats going on and thats a result of a lack of leadership, because THEy are suppose dto TELL US what THEy are :D They are leaving us to make wild guesses about whats even going on

Here maybe THIS will solve All of steem's problems, you can get some goodboy points for defending steemit inc

Let's not give Ned too hard of a time. If it was easy to be a CEO, everyone would be doing it. Sometimes when you're in the middle of things, what seems obvious in hindsight or from the outside is difficult to see. Let's just be glad we've got someone here now who does see, and hope she can keep it going.

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Steemit Inc must have sold STEEM for such massive sums of fiat that any technical problems should've been overcome in a timely manner by simply hiring enough good people. The market cap of STEEM was billions of dollars a year and a half ago. I suspect Steemit Inc may have sold close to a hundred million dollars worth of STEEM during its existence. What kind of a software engineer can you hire for a million bucks a year? What about marketing professionals to counter all the FUD? When the bear market hit and the price collapsed, that was the day of reckoning.

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