| Are you an entrepreneur but don't like
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| selling alone? A consortium is a
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| | Okay, that is fairly straightforward.
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| combination of different industry-types
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| of entrepreneurs working together to
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| | After the client receives their
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| attract business as a group. Even though
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| | contractual services by the member, the
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| each member maintains their individuality
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| | member then bills their time to the
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| and operates as the same as
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| | consortium in "units" not dollars. Units
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| self-employed.
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| | work better than dollars because they
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| | equalize the various billing rates of the
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| They band to create a more valuable
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| | members. For example: a CPA may bill
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| package to fulfill bigger needs for
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| | four units per hour, a writer three, and
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| clients and for increased visibility and
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| | a virtual assistant one. The consortium
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| credibility.
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| | keeps track of everyone's units and pay
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| | members on a regular basis as set up in
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| The positive side to being part of a
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| | the consortium's charter.
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| consortium is that you can work on larger
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| projects. Larger than any single
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| | When the consortium is properly
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| entrepreneur can accomplish alone.
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| | tax-structured, the revenue and expenses
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| Together they can enter into contracts
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| | can balance themselves out. It is
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| that require multiple skills and still
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| | important to see a tax professional for
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| maintain the freedom of their
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| | details on structuring a consortium for
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| entrepreneur-hood they so desire. They
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| | tax efficiency.
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| gain being part of a team and
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| organization while still keeping your
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| | A challenge when starting a consortium is
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| independence.
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| | to make sure that when looking for
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| | members, prospects do not mistake the
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| A consortium can provide the security of
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| | first meeting as a new networking group
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| core revenue that helps them breath, not
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| | starting up. People confuse the two and
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| chase prospects as hard, and usually take
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| | show up. This will give the organizers a
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| care of regular living expenses. It is
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| | misrepresentation of the "real" number of
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| also a great way to transition from
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| | interested parties.
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| employee to self-employment. The
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| transition allows the learning and growth
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| | Joining a consortium is not a short-term
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| at a slower steadier rate. Each member
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| | project. It is important to know that
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| learns from other group members by
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| | joining or starting a consortium is
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| sharing their success and mishaps. This
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| | long-term. There is the initial
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| way the risk factor of being
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| | investment of time and money from all
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| self-employed is less.
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| | members. The startup phrase doesn't
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| | occur in one meeting. An agreement on
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| The consortium can also band products to
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| | many items needs addressing. Some
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| create higher priced, more valuably
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| | established consortiums require a minimum
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| perceived, packages. Larger packages are
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| | of three years, however, many startups
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| easier to sell. A group package of
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| | can require five, ten or twenty-five
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| various authors is more attractive to
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| | years commitment.
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| buyers. Everything that the buyer needs
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| is then packaged and available with one
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| | Oh, but when they work, they are make
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| purchase.
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| | being in business so much nicer.
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| Being a part of group also removes the
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| | Usually the founding group elects three
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| pressure of trying to be an expert at
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| | leaders to handle the administration.
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| everything. And allows each individual
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| | One of the three may have a higher voting
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| to focus and be brilliant at what they
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| | right. Usually the one given the higher
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| specialize. There are many types of group
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| | voting right is because of their
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| configurations for consortiums. Let me
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| | investment of time or money, but not
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| give you a few examples of some of them.
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| | always. These leaders have the
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| These groups formed a single purpose.
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| | responsibility of organizing meetings and
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| | splitting up the consortium
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| An entrepreneur consortium can include: *
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| | responsibilities between members in a
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| CPA * A writer specialty in business
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| | fair manner.
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| plans and advertising copy * A financial
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| management consultant * a human resource
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| | Money is an important factor when
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| consultant specializing in benefit
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| | entering into these types of agreements.
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| programs and employee manuals * An
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| | It is the main purpose of forming the
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| Internet consultant * Web master *
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| | consortium. Money is also one of the
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| Strategic planning consultant * A
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| | main reasons they breakup -- like most
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| secretarial service or virtual assistant
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| | marriages. Because of this, it is
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| * Graphic artist * Brand specialist *
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| | important to have a buy-out clause in the
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| Public relations firm
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| | agreement that protects the members and
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| | the consortium.
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| A training consortium can include: *
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| Writers (copywriter, web writer,
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| | Respect, appreciation, and acknowledging
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| direction mail writer) * Editors (line
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| | of each other's contribution is mandatory
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| editor, grammar editor) * Reference
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| | -- put a cap on the M to mandatory. The
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| checker * Graphic designer * Multimedia
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| | boundaries and scope of each other's
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| specialists * Videographers *
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| | services must also be clear. It is not
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| Presentation trainer * Voice coach
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| | uncommon for some members to offer
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| | similar services. Thus, the boundaries
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| A software consortium can include: *
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| | of who does what is extremely important.
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| Programmers * Multimedia specialists *
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| Graphic designers * Marketing consultants
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| | Being a consortium member doesn't ban
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| * Packaging consultant * Retail
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| | them from obtaining outside clients for
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| consultant * Product Development
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| | their particular speciality. However,
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| consultant * Accountant/Bookkeeper *
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| | working with other members to gain
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| Virtual Assistant * Business coach
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| | contracts separate from the consortium
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| | breaks their membership in the
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| A consortium can form that specializes in
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| | consortium. And always have consequences
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| children books or educational products.
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| | stipulated in the consortium charter.
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| The group can consist of educational
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| specialists, graphic designers, marketing
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| | Communication and cooperation are
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| consultants, self- publishing expert,
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| | challenges for groups of this size. Each
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| agent, and various types of writers.
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| | member needs to make big effort to work
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| Artist guilds work off the same principle
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| | and be patience in these two areas. The
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| of consortiums. Some consortium, many
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| | need for professionalism is important so
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| guilds in fact, purchase real estate
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| | that the group does not degenerate into
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| together to display and sell their art.
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| | personality conflicts or professional
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| | battles. Having an outside arbitrator
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| Let us follow the money trail of a
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| | for disagreements is a good idea.
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| consortium.
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| | Even though there is a challenge in
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| The client enters into a contract with
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| | finding the right members and keeping the
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| the consortium. The consortium bills the
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| | relationships working, remember the
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| client. Each consortium member discounts
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| | advantages outweigh any and all cons.
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| his or her rate and bills the consortium.
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| | Consortiums have been in existence for
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| | several decades now and have proved their
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| The billing difference supports the
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| | possibilities.
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| business side of the consortium. It can
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| pay for marketing or other overhead
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| | For a list of additional resources,
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| expenses.
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| | visit: Franz is a Marketing & Writing
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| | Coach, niches, product development,
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| After the client pays the consortium, the
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| | Internet marketing, nonfiction writing
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| consortium then pays the members who
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| | and training.
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| worked on that project.
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