What foundation does your business have? Is it built upon a firm base? What about Business Model. Have you given any thought to the details of the deal you've gotten yourself involved in with all kinds of excitement and hoopla, or you drank the cool aid and have to stick to that decision. It doesn't take much time or effort to explore common sense ideas of what are desirable characteristics upon which a business should be founded, and a framework for the business model whereby it operates.
I don't need thousands of followers. I'm not trying to get small amounts from many, many transactions, depending on volume. I do need to build it big. I do need to build it only once. And, I do need it to pay my children's children. But, I only need 4 or 5 close relationships, over the course of a lifetime, and work with those people, pointing them to organized and thoughtful training to help them to build 4 or 5 close relationships over their lifetime. A proven system that can be duplicated is necessary to accomplish this. An important aspect of all of this too is the Business Model.
Business Model is not the same as 5 Pillars. Whether a company is valuable, or if it is desired to rank one company against another, then a 5 Pillars analysis is useful. It is also a great model for a business foundation. In a nutshell, here are the 5 Pillars:
- Does the company management have personal experience building their own networking organization? Have they done it with Integrity?
- Has the company passed the "early failure" Time Line? Are the company's Products timed with the beginning of a massive trend of consumer demand?
- Does the company have a Remarkable product at a reasonable price?
- Does the Compensation Plan Pay Part-Timers?
- Does your Mentor offer a System for Success that will work for You?
We've also expanded the list to include 3 more items, to look into whether a company is a Distributor Oriented Company, so we now have 8 Pillars:
- Does the company keep Distributors and Partners first, and the company second?
- Does the company have a business plan? Do they have 5, 10, 25 or 100 year plans? Do they have a vision?
- Does the company have morals? What are their core values? Are these even discussed or presented?
We talk about the Pillars at least once a month, every month, since it is so fundamental to all company analysis, yet, as always, we never discuss specific companies or products, just the framework or Pillars to support them.
A Business Model can be buying habits. For example, when the United States government negotiates free-trade agreements with other countries it is thereby encouraging those countries to sell their products in our country. If these countries compete with companies in the Unites States, then it becomes possible for job loss in the United States. Unless the consumer chooses to be knowledgable of where products are made, and chooses to buy from domestic companies. This is a case where a Business Model can drive behavior.
Compensation Plans also contribute to a Business Model. The structure and commission structure play a fundamental role in how the business is built, and whether there is short-term or long-term incentives, as well as whether customers are emphasized over getting more partners. Does the company's compensation plan break-away distributors from their sponsor's by reducing the percentage that flows upward once a distributor reaches a certain level? Is there reasonable percentages to a reasonable number of levels, or do you have to build a decent sized organization before any good sized percentage is received? Do you get an increase in promoting those to whom you've partnered, or, do actually lose when they build as big or bigger than you?
Business Model is the structure that forms the basis of operation or behavior in the field by both customers as well as partners. The 8 Pillars are the supporting structure that lays the foundation upon which the business is built. Both are necessary to be known and understood to even begin to expect success and then know how to accomplish it.
with gratitude and in service,
P.S. Joyful All Ye Faithful. Stay True to Your Song. Resolve to Weed Your Mental Garden. Clean and Grow Your MIND for the New Year: here
P.P.S. If you want to learn more about Business Models, we have a live call on Saturday, December 15, 2013 at 9:00 p.m. EST. No need to speak up, just listen. 712-432-5225 conference ID 300300# I'll be there, too.
P.P.P.S. Sometimes Think YOU'RE Nuts? Heck ! This Guy Joined 100 network marketing Companies! - Here's What He Learned: Free eBook video
Image credit: CanStockPhoto.com