DO YOUR DUE DILIGENCE 3.3
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Do Your Due Diligence 3.3
SERVICE DRIVEN BUSINESS MODELS ARE WEAK
Keeping is more important than gaining. And being able to keep what you earn matters. Keeping what you earn is the same as sustaining what you gain. Our industry focuses on recruiting and growing. They do not focus on keeping or maintaining what you gain. It's easier to use hype, fluff and flash to grow a business but that is only short term. People run from challenges. People promote useless and insignificant things that do not matter. The majority of the things can be obtained for free or at a much more fair price than the cost of a membership.
If people actually did their research when it comes to services that actually matter then less people would get taken advantage of. The term essential has been used heavily in 2020. Obeying acts 2:38 is essential for salvation, food, clothing and shelter is essential for sustaining life. Marketing skills, selling skills, tools and resources are essential for the success of being able to build a business or income.
The biggest flaw of service driven business models is the fact that you can't increase your income unless you recruit or get another sign up vs a product driven company that has a wide range of diverse products and services. Because these types of businesses are built on a set price instead of being based on volume. And that prevents additional purchases which keeps volume from being generated. When you have products and services that are "essential" people not only want them but have a "need". You have a better chance of creating a much stronger and more stable income. This is something that you have to thoroughly think all the way through. It could take time to grasp such concepts like this.
BE CAREFUL YOUR TIME AND MONEY IS AT STAKE
I have witnessed service driven companies take advantage of people by altering the compensation plan. They promote, build and sell around price instead of the value. And the truth is if you have to drop your price and alter your compensation plan to grow numbers that clearly means the value was never there. Businesses have always sought to scale up never down. Businesses have always thrived on innovation. Creating new products and services to enhance life or business is what capitalism is all about. A company that is around to stay will always increase the value and sometimes the prices goes up with it never down.
Service driven business models don't have consumables. Because they don't that puts you in the field of having to convince people why they need it. Service based business models don't make logical sense if they only provide services in 1 market. If it doesn't make sense or line up with a legitimate product based business it's not worth your time or your money. The truth is as it's been stated when people get into a financial bind or even suffer financial hardships the first thing they do is cut back on services.
If people use cable they down grade, if people have a higher internet package they down grade. And if people have a membership that provide no real or direct benefit. They can't downgrade. Why? The membership costs the same for every member. At least the cable company has a service package that cost less. At least the internet company has a package based on price without losing everything. So instead of losing 100% of their revenue they are able to at least keep some. Some revenue is better than none at all. Think about it!
RESEARCH OLD COMPANIES THAT WERE POPULAR
When you're getting paid on subscription fees in a semi product based and semi service based company instead of on the volume that is being generated. It creates a ridiculous amount of breakage. The breakage comes from having standards set so high or unrealistic to the point where very few qualify to earn or get paid the commissions that they worked for. Example some companies like Wake Up Now have a $100/month subscription fee. You need 3 people in order for your $100 to be waved. Or in order for it to be free. However lets supposed that you have your 3 to make it free. You're still generating the company $300/month in revenue you don't get paid for the work you're doing or have done to get the 3. How fair is that? You're getting 0% for the work you're doing. The company is making 100% off your efforts. That is either going to the company, corporate leadership, or to pay a top earner.
You need 9 more people @ $100 each to earn $600/month. Your first 3 people are generating $300, your second 9 people are generating $900. You're generating $1200/month and you only get 1/2. Here is the flaw you have to build 3 lines of distribution (3 legs). The average person can't build more than 2 lines of distribution at the same time. The average person does not have the skill or expertise to sponsor 12 people. Let supposed they get 5 - 8 people let's say you spend 90 days in the company you've generated $500 - $800 per month for the company and you don't get paid $600 until you have 12 people. How fair is that? There is a reason Wake Up Now (WUN) no longer exists.