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This came up in the locked topic... The WWE ID stuff... how does everyone understand it to work?
From what I've gathered...
WWE shows interest in a person but not enough to sign them to NXT. Instead they receive a contract that gives WWE right of first refusal, so if AEW or MLW came calling WWE could match the offer and sign them to NXT or pass on them. While under the WWE ID contract they continue doing what they are already doing otherwise.
I think PWInsider also reported some WWE ID creative/stories will take place in independent events, but I can't confirm that as I read it in passing and now can't find it.
Every report I've seen basically sums it up how you did, so you're spot on.
I believe I also read, if correct, the WWEID folks may receive a minor stipend per month as well to assist with their development, but confirm that in case I misread someones dumb idea as fact.
I can see them paying a little something based on the website info. They also appear to be filming content of these people to use in future video packages.
The schools in question:
They cover most of the country with those facilities.
Info from WWE ID recruitment portal. link