The Lazy Eight Sloth Fund
"The best way to multiply your profits is to share it with those who believe in your vision. "
Close your eyes and inhale deeply. Hold your breath. A point will come where you’ll feel the urge to exhale for not losing consciousness. Circulation — giving and receiving — keeps a check on the flow of energy floating in your body. With this thought, at Lazy Eight Design we believe in circulation — profit receiving and giving — which we believe fosters the sense of fairness and most importantly, belongingness.
What is the Lazy Eight Sloth Fund?
In most Creative Agencies, partners share the profits. In essence, it's the highest rung of the ladder for a junior creative entering the Creative Agency World. At Lazy Eight Design, we don't have such ladders, or pyramids. Everyone on our team is a Principal, hence everyone deserves and rightfully gets a piece of the pie.*
Why do we do this?
It's pretty simple. Our Principals form the bedrock of Lazy Eight Design. A Principal's experience compounds the net experience of our team. The time they spend on Engagements helps build out our capabilities, portfolio and most importantly they help build out this idea we call Lazy Eight. Hence the fund is our way of simply saying thank you (even after a Principal leaves Lazy Eight Design**).
How does the Sloth Fund work?
At Lazy Eight Design we have invented our own currency for time, The Lazy Eight Hour. The Lazy Eight Hour helps us and our clients measure "true work" and report it. We do this using an internal AI bot we have developed called 8 (Aath). When a Principal is staffed on an engagement they use Aath to run hours during execution. These hours are then compiled and used for the Principal's monthly compensation and the determination for their % Sloth Fund ownership.
A Principal's share of the Sloth Fund comes down to simple math:
(Total hours put in by the Principal from day 1 of joining ) / (Total hours put in by all the Principals from day 1 of their joining).
Our Sloth Fund is made up of two main items. Net Profits from client engagements and Net Carry (ROI) from our Infinity Fund . These are distributed on a quarterly basis as a bonus to our current and past Principals as per their % Sloth Fund ownership.
*Is there a minimum % that a Principal must own for the quarterly distribution?
Yes. The Principal must own more than 0.25% of the Sloth Fund.
**What happens if a Principal decides to leave Lazy Eight Design, or takes a long sabbatical?
The Principal will continue getting their quarterly distribution so long as their ownership % is over 0.25%. Naturally over time if a Principal doesn't contribute hours, their % of the Sloth Fund reduces (the denominator on the calculation above increases due to contributions from other Principals).