Let's imagine for a moment that you were going to start a new business. How would you design your new business model? Well, it can be whatever you want. You'll have a fresh start, a clean slate, and the freedom to run things as you see fit. Honestly, anything goes.  

 

But let me make things a little easier and suggest the following business model.

 

What you sell

 

You will focus on selling another company's product by positioning yourself as a "middleman." You will get appointed by them to sell their product, but all the marketing & operational expenses will be up to you to cover. 

 

Of course, your "partner" will determine the product's design. When they decide to change the design, you will have no input.

           

           i.e. – You don't control what you sell.

 

How much you get paid

 

Well, the great thing about this business model is you don't have to think about how you get paid; the company whose product you sell will tell you how much you are worth. Make no mistake, though; they will compensate you based on the value you deliver to them as a distributor of their product, not the value you provide to the actual client.

 

Oh, if they decide you're making too much, they can reduce, or even eliminate, your compensation by however much they want.

 

           i.e. – You don't control your revenue.

 

How you will price the products you sell

 

Again, you won't have to worry about how to set the price; that will be done for you by your partner. However, if they decide the price should go up by 30% or 40%, it will be up to you to deliver that news to your client.  

 

           i.e. – You don't control pricing.

 

Servicing existing clients

 

Wow, this model keeps getting better! Most of the service you will provide to your client will be fixing the problems caused by your partner. When they screw up in a way that affects your client, it will reflect as poorly on you as it does on your partner. But look at it this way, it will give you a chance to prove what excellent service you provide.

 

           i.e. – You don't control when you get to help your clients.

 

Dealing with competition

 

You don't have to worry about what the competition is doing because you already know. They're doing exactly what you are doing! 

 

Your partner has been given the same product, compensation, pricing, and service to your competitors as they have given to you. But don't worry, the competition also won't have any advantages over you; it's a completely even playing field!

 

           i.e. – You appear to be the exactly like your competition.

 

WTH?!

 

I hope that by now, you are saying, "What kind of advice is that, KT?! That's one of the worst business models I can imagine! Why would I risk starting a business built on that model?!"

 

To which I would respond, "Exactly! If it doesn't make sense to start a business built on this model, why would you continue using that model for your current business?!"

 

Photo by goodluz