All kinds of stuff out there on collective start u

Based on the California Attorney General however a collective should be, “ an organization that merely facilitates the collaborative efforts of patient and caregiver members – including the allocation of costs and revenues. As such, a collective is not a statutory entity, but as a practical matter it might have to be organized as some form of business to carry out its activities.

Revenue

Since medical marijuana collectives are a non profit organization the term “revenue” is somewhat misused. Everyone volunteering their time is compensated including those who started the collective up. The revenue generated however is used towards all of the costs which were mentioned earlier in this article. As a collective owner or potential collective owner you will need to figure out the overall revenue needed to be generated in order to afford and pay for all of the fees and costs associated.

The easiest way to figure out potential revenue is by averaging and estimating marijuana prices based on current mmj markets and donation amounts.

At an estimated going rate of $300 per ounce, a collective would have to sell over 1,600 ounces per year just to generate $480,000 in overall yearly revenue and this is before all expenses ( rent, security, payroll, etc… ). With a very conservative estimate of 1 to 2 ounces a month per mmj patient, a typical collective would need at least 100 patients actively participating monthly ( donating towards medication ) just to break even.

Now many collectives have far more than 100 patients going in and out their doors on a monthly basis however actively figuring out your costs, revenues and overall expenses now will only making your collective launch that much smoother.