**** Our Prior Business Model ****
*** Lease My Software This Way Indefinitely ***
First Off, Since we are only ones that run and control software, we had access to any trading account that used my Software. We had to attach EA to account and monitor performance as well. So we always knew account status and balance.
Our Previous Business Model was quite simple. Worked this way...
A Person or Business either through a referral or through one of our Sales Reps, or though our website contacted us and agreed to lease my software on a 50/50 Profit Split Basis. I would give them name or two of broker worldwide who we deemed having a reliable server to contact and open a MT4 Forex Account with.
a. would open and fund that account.
b. would send us the login and server info..we would log into account and confirm info to make sure it was their account and Leverage, Funds etc was correct to specs agreed to between us.
c. Once everything was correct, we would turn on EA and it would start trading. It ran on our servers and it was our function to make sure power, internet etc was not lost which would hamper trades.
d. Weekly, we would record profits and turn off EA and bill them for our share of Profits. Then EA was turned back on. They had 10 days to pay us. If they failed..The EA was turned off and another week was giving them to pay us unless they made other arrangements with me. If they failed to pay us after that week.. I would shut everything down on that account...and they were Barred from ever using my software again. We did not pursue them to recover our share of profits...we ate that since our true cost weekly was Power and Internet connection for that server account was on..minimal in the scope of things.
e. That cycle repeated each week till we felt comfortable in knowing we would get paid from that person...then we changed profit splits from Weekly to Bi-Weekly or Monthly on a case by case basis.
f. As we received our share of profits, Finder / Sales Rep received his 10% commission and the GM I assigned that State or Country to received a 5% override on that business originating in that State or Country.
g. If account for whatever the reason failed to produce a return for that week..we forgo any split that week. That loss was carried over to following week so account holder always recovered any loss before Profit Splits came into play.
h. There is a risk in Business in general ..In trading also. Everyone Who trades knows that. If account lost money and it was found to be my software or anything to do with it at our end..lost power, internet etc......for whatever the reason.. I would suspend all Profits Splits till account balance came back to proper level. If account was too low for EA to trade it properly. I would put money into the account to help get it going again and Splits would be suspended till account balance was at proper level.
i. there never was a contract..agreement in writing. It was a verbal..gentleman's agreement I worked off. Pay us our split when we bill you..we leave software running.. Don't pay us...we turn off EA and Bar you from any further use or doing business with us ever again. That Business Model worked very well for us till Dodd-Frank Bill in October 19, 2010.
j. Staying on our books means some people just wanted to make profits for few months..pay off bills. so they would close the account and move on after paying us our share. Like in any business... Customers / Clients come and go..that is true for every company..in every industry. Our Industry is no different. Not everyone out there is seeking same thing... people had different reasons for closing account once their goal..objective was met.
*** Only Dodd-Frank Bill killed our market due to those changes. I now seek to use those changes as just a bump in road as we recover all the American Market on sidelines since no one else out there in these past few years we were distracted with PFCEA deals has managed to make any progress with USA Based Forex accounts. Now we will try... ***
Starting with 2017...Our New Business Model Includes my wanting to turn our operation into an Investment Company using Our own Proprietary Software as our Core Product.
Samuel J Sarullo
(c)Samuel J. Sarullo 2008-2017. All