Fintech recruitment agency gifts every new hire their profits in crypto

[JohnnyAlpha]

There's a new fintech called The Hug Agency https://hug.agency who give their profits ($000s) to anyone they find work. They are rolling out globally and you get their profits however you want ( cash, stocks or crypto ) in a portfolio you build over 24 months. See the explainer on the site.

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[joniboini]

It sounds too good to be true. If it gives all of its profits to its workers, how can it expand and manage its business? It's probably just a marketing gimmick. Are you one of them OP?

It's not a sustainable business model, even if it's true probably it will be short-lived.

[Fesatmas]

If you've ever worked in a company, you'll definitely find the promotion not strange anymore. I think this is a basic technique in marketing methods in order to attract a large number of fans.
regardless of the benefits that applicants will get later, is there some kind of benchmark to prove that there is no manipulation just for the sake of profit.
because the company needs the output of what they spend to mobilize workers for months.

[JohnnyAlpha]

@joniboini et al - yes.

You're absolutely right about some things.

Recruitment agencies can't give away their profits and survive, the best they can hope to do is just exist... but what if that's all they are designed to do?

Red Pill time....

The Hug Agency gifts 100% net agency fees to new hires (which equates to profits minus operating costs). So the recruitment agency is operating at cost, forever!

Now, no traditional recruitment company can compete when another agency can give away it's profits forever, whilst also attracting the best talent (who want the $000s of free cash, stocks or crypto).

So, at the heart of this is a new kind of social impact Fintech, is not a recruitment agency. Instead it runs recruitment agencies globally purely at cost, in order to take stewardship of the $400B annual recruitment market, in a way which does huge good for society and is actually very profitable (for other reasons).

In just 12 months, The Hug Agency has been ranked in the top 10% applicants by one of the world's largest accelerators, has had VC offers valuing it at the seed stage over $35M, had three Sovereign private family office partnership offers... but they are all rather traditional and equity based... this is the new digital economy.

So, please don't write it off just yet... not until you read the tokenomics white paper :-)

[AmoreJaz]

@joniboini et al - yes.

You're absolutely right about some things.

Recruitment agencies can't give away their profits and survive, the best they can hope to do is just exist... but what if that's all they are designed to do?

Red Pill time....

The Hug Agency gifts 100% net agency fees to new hires (which equates to profits minus operating costs). So the recruitment agency is operating at cost, forever!

Now, no traditional recruitment company can compete when another agency can give away it's profits forever, whilst also attracting the best talent (who want the $000s of free cash, stocks or crypto).

-
So, please don't write it off just yet... not until you read the tokenomics white paper :-)

the concept is great as it will attract candidates to use their platform. my first time to hear such incentives but definitely this will be a good motivation for the candidate to find a job via hug and stay with the employer for about 24 months. as you can only receive the gift, as what they called it, after 24months. but if not, you can still receive their gift but you have to wait for 24 months. not bad though. for those who want to know more, either you are a candidate or employer - you can visit their faq section .
but how do we know which countries are having this kind of operations?

[Zilon]

100% of their profits going back to the workers and the society sounds too suspicious. How then would they maintain the company since their profit is completely given to charity. Even for NGOs they still need constant profit to maintain their services not talk of a company who is established on the ground of making profit. There is really no harm in giving it a try since that's the only of getting full conviction.

[Lorence.xD]

100% of their profits going back to the workers and the society sounds too suspicious. How then would they maintain the company since their profit is completely given to charity. Even for NGOs they still need constant profit to maintain their services not talk of a company who is established on the ground of making profit. There is really no harm in giving it a try since that's the only of getting full conviction.

From my knowledge, most companies that do these don't last long and the successful ones are continuously looking for a balance that will make their company survive and have the clients and workers still satisfied.

[JohnnyAlpha]

Its not a charity, its not an NGO, its a social impact (which means it makes a profit whilst doing good).

Several countries were meant to launch together, but one had to be accelerated for a summit (to show progress). Next agency is going to be NYC.

The business model uses tokenomics, digital identity, digital wallets and shortly AI.

In other words it's part of this (blockchain) community and it's putting the case forward to governments that crypto and tokens can do good for society.
Tokenomics paper to be announced soon, after regulation for an IEO or STO.

Private sale about to start.

[Hydrogen]

Sounds interesting.

Profit sharing with workers is an incentivization/motivation strategy. Workers might be more motivated to find a job utilizing their system, if they're paid a bonus in crypto. The more who find a job, the more successful their enterprise can be. It could end up being a win/win scenario for everyone.

Not so different from employees being rewarded with stock options and other bonuses to incentivize them being more motivated.

Doing it in crypto though. That makes their format special.

100% of their profits going back to the workers and the society sounds too suspicious.

Is that what is known as a non profit organization?

There is an upside to that where they pay lower taxes. Financial engineers have ways to do all types of things with non profits, charities that one would not ordinarily expect.

[semobo]

No company is going to share their 100% profits to their workers, this kind of business model already exists in different industries where they call their employees as partners not as workers so there is no guaranteed income for their work. And they have certain goals to reach to get minimum rewards which go out of reach most of the time so that company keep the profits of incompleted members and keep adding more and more partners to their job.

[JohnnyAlpha]

@semobo - the recruitment agency gifts its profits to the worker when it finds them a job. The organisation that employs them doesn't gift them their profits!

As an example,
1) you register your resume (cv) with The Hug Agency and they find you a $100k solidity developer role with ABC Corp.
2) You accept the offer to work for ABC Corp
3) ABC Corp pay The Hug Agency 15% "placement fees" ($15,000) (industry normal is 10%-20% of the salary)
4) Hug Agency covers its running costs (staff, office and legal) using $5,000 and $10,000 is left as profit.
5) Hug Agency gifts you $10,000 over 24 months to build your own custom portfolio as cash, crypto (BTC, ETH, DOGE etc) or stocks (Tesla, Amazon etc) you choose.
6) At month 24 they transfer ownership of the portfolio to you (if you want, you may decide not to) hopefully with asset appreciation.
7) During the 24 months they provide free training on finance (inflation, interest, debt, assets, speculation, investment) - what should be taught in school.

So, Yes its free, yes its free forever (not a marketing angle), yes you have to pay taxes when it's transferred to you, if you leave employment before 24 months you only get up to the current month,  etc (its all on the FAQs)

It can be run like this because of tokenomics and scale. There are new business models that tokenomics make possible which benefit small investors and not just VCs, the 1% or Whales :-)

All will become clear with the tokeomics paper.



 

[paxmao]

It sounds too good to be true. If it gives all of its profits to its workers, how can it expand and manage its business? It's probably just a marketing gimmick. Are you one of them OP?

It's not a sustainable business model, even if it's true probably it will be short-lived.

Not really, it is actually a business model and it alive and well all around the world, it is called a cooperative. The workers are the owners of the business and they manage it and also work on it. There are some long lived examples in Spain such as Cooperativa Mondragon, and it has equivalents in many organisations across the world. Even a professional partnership, e.g. a law firm, is a company that actually gives the profit to the people who work there, or at least to the partners.

[JohnnyAlpha]

Actually, its not a cooperative, not a charity, not a NGO, not a DAO.
The parent company of all of the recruitment subsidiaries is a social impact company (https://www.causelabs.com/post/what-are-social-impact-companies-and-why-do-they-matter/). In all aspects its a normal "for profit" company (shareholders, staff, pension plans etc). The only difference is they are sustainable because they are highly ethical and although they make a profit (they must for all the reasons mentioned by other comments) their mission is to do good for society .

So, don't concentrate on the global recruitment agencies (they are the "not-for-profit" interface) and consider the "for-profit" fintech at the centre. It is profitable because it manages all of the portfolios that are gifted to new-hires. For example, placing 100,000 people in work means 100,000 * $5,000 = $500,000,000 Assets under management (AUM) for 24 months.

Although a lot of people on this forum understand crypto, they don't understand business. Thats why they make uninformed statements (which is understandable because this is new and making the statements is appreciated as we all can learn). The beauty of tokenomics is new business models are possible (just like Bitcoin disrupted finance, which not many people believed was possible). The tokenomics paper will show how society can help society profit from recruitment agencies which operate at cost...now that will twist your melon :-)


 

[The Sceptical Chymist]

From my knowledge, most companies that do these don't last long and the successful ones are continuously looking for a balance that will make their company survive and have the clients and workers still satisfied.

And from my observations over the years, most new companies in general don't last long, whether they operate like the one OP seems to be oddly hyping up.  I'm wondering why he's promoting this Hug Agency so vigorously, especially as he's a newbie on the forum and seems to have a lot of knowledge as to how this company operates.

OP, what's your connection (if any) with The Hug Agency?  Shilling disguised as discussion threads aren't appreciated around here.

[JohnnyAlpha]

I already said I was one of the team, but there's no tokens to buy (no shilling). This is about tokenomics creating a new form of economic principle which is allowing  organisations to operate differently. The comments have been interesting because its apparent people are finding the transition from "traditional business" to the "new digital economy" interesting and so are commenting. However, I understand you concerns and will close / leave the post. Its been interesting, thank you for everyone who bothered to make a comment.
 

[paxmao]

Actually, its not a cooperative, not a charity, not a NGO, not a DAO.
The parent company of all of the recruitment subsidiaries is a social impact company (https://www.causelabs.com/post/what-are-social-impact-companies-and-why-do-they-matter/). In all aspects its a normal "for profit" company (shareholders, staff, pension plans etc). The only difference is they are sustainable because they are highly ethical and although they make a profit (they must for all the reasons mentioned by other comments) their mission is to do good for society .

So, don't concentrate on the global recruitment agencies (they are the "not-for-profit" interface) and consider the "for-profit" fintech at the centre. It is profitable because it manages all of the portfolios that are gifted to new-hires. For example, placing 100,000 people in work means 100,000 * $5,000 = $500,000,000 Assets under management (AUM) for 24 months.

Although a lot of people on this forum understand crypto, they don't understand business. Thats why they make uninformed statements (which is understandable because this is new and making the statements is appreciated as we all can learn). The beauty of tokenomics is new business models are possible (just like Bitcoin disrupted finance, which not many people believed was possible). The tokenomics paper will show how society can help society profit from recruitment agencies which operate at cost...now that will twist your melon :-)

Fair enough, I am just speaking about the business model in which profit is returned to employees in a more direct manner. I am aware that the case may be different and still sustainable for a small company creating a sense of community around the idea of employees being the true beneficiaries of the profit and growth. Many large companies have something like this at a scale with incentives and stock options, so this is just making it 100%.