MODEL 3: Participatory Ownership Model

The Participatory Ownership Model introduces collaborative ownership and co-governance mechanisms between CHOs and diverse stakeholders. This model promotes shared responsibilities, resources, risks, and revenues, fostering deeper partnerships and long-term sustainability. It encourages innovative business models like revenue sharing, joint ventures, cooperatives, and co-opetition (combining cooperation and competition) that empower CHOs and partners to co-own and co-develop cultural heritage initiatives.

This model is based on structured partnerships where CHOs share ownership or management rights over cultural products, platforms, services, or infrastructures with other stakeholders, including two-sided models, where CHOs form strategic partnerships with one stakeholder to co-own and co-manage specific assets or services, or multi sided models, where CHOs create distributed networks where multiple stakeholders co-own and co-manage initiatives collectively, sharing costs, revenues, decision-making, and risks.

CHOs typically maintain exclusive ownership and decision-making authority over their assets and services. This model shifts the focus toward collective management, enabling distributed risk-sharing, co-investment, and collaborative business models uncommon in traditional CHO operations. It introduces private sector partnership models, community co-ownership schemes, and cross-sector collaborations, which can enhance innovation, market relevance, and financial sustainability.

Engagement

• Joint ventures with private companies

• Co-owned cultural services or platforms

• Shared ownership models between CHOs, communities, and businesses

• Co-managed regional or thematic initiatives (e.g., heritage routes, digital platforms)

Ownership Models

• Co-financing and revenue sharing agreements

• Joint ownership of intellectual property or digital platforms

• Establishing cooperatives, consortia, limited companies, or foundations

• Co-governance boards with stakeholder representation

Collaboration Structures

• Two-sided strategic partnerships

• Multi-sided participatory ownership networks

• Formal legal structures like joint ventures, cooperatives, or collective ownership models

Benefits

• Diversified and sustainable income streams through shared revenues

• Access to private sector expertise, technology, and networks

• Risk mitigation by distributing financial and operational responsibilities

• Strengthened stakeholder commitment and long-term partnerships

• Increased agility and innovation capacity through collaborative business models

Barriers

• Legal and regulatory challenges around shared ownership and intellectual property

• Cultural reluctance within CHOs to share authority and control

• Risk assessment and mitigation strategies in case of failures

• Governance complexities in multi-sided ownership arrangements.

• Potential power imbalances and conflicts among partners

• Need for strong negotiation skills, contracts, and trust-building mechanisms

Revenue Earning Models

• Revenue Sharing Models (including Commission, Licensing, and Service models): Stakeholders share revenues generated from jointly owned services or products

• Sponsorship Model: Collaborative ownership can attract larger sponsors for joint initiatives

• Crowdfunding/Crowdinvesting Model: Engaging communities to become co-investors or co-owners in specific projects

• Subscription Model: Jointly developed platforms can offer recurring revenue from subscriptions

• Brokerage Model: CHOs can act as brokers within the co-owned ecosystems, facilitating services and earning commissions