The Best Business Model In The World

What I’m about to show you is a simple & easy way to set up a model that can increase your profit.

No matter the business you run now.

Some days ago, a friend of mine bought a decoder for a price he considered ‘’very cheap.’’

As we brought out the decoder from the colorfully attractive pack it was in, my friend commented about how something that looked that expensive could be as cheap as it was.

And I was surprised that he didn’t get it.

The decoder company had sold him the decoder at a loss.

They hadn’t made a single kobo in profit from that decoder.

Why?

Simple – because they have this simple business model I’m about to show you. With this business model in place, you can afford to sell at a total loss and still make a profit.

This is how it works –

The decoder company will cover all its losses from the subscriptions a customer will make with one decoder over the years.

By now, I am sure you get the model I am talking about (You are smart)

The business model is: THE SUBSCRIPTION BUSINESS MODEL

– PHCN runs the same model.

– Satellite TV companies run the same model

– Some software companies run the same model.

– Water companies run the same model.

– Telecommunication companies have it too.

– When you rent a house or shop, you are running the same model

Etc etc.

I call this the “water money”.

It keeps flowing.

It’s simple: you set up a business, give people a particular service, and make them pay every month for using your product or service.

You are looking at this right now and thinking that you can’t apply it in your business. Think deeply, you can.

Imagine a course creator who sells his course plus 30 free days in his community, and after that, you pay a monthly fee.

There is more.

I will give you an example to show you how possible it is to incorporate this model in any business.

Let’s take a tailor, for instance; a customer walks in and has his clothes sewn by the tailor, then when the customer comes over to take his clothes, the tailor gives him a card and says something like:

“Hey, for sewing this material here, you have automatically entered my “gold membership club.” What this means is that this card qualifies you to get a 20 percent discount off every “job” you bring into this shop. The card expires in 30 days, and you would have to renew it after 30 days.”

First, the tailor made the customer feel a certain way. He has just been automatically qualified for a “gold membership.” People love to be in an insider crowd.

Then comes the juicy part – the offer. For sewing this first material you will get a discount off future clothes mendings, future new clothes sewing – future any job brought in at all.

Then, the tailor goes on to say that the offer expires after 30 days.

Not everybody would go for this, but the ones who would, will hustle to get in to claim this discount before the 30-day period runs out.

You know what that means? This means that the money customers would have taken to the tailor’s competitor would be brought into his shop.

But of course, the tailor would need a standard fee for this to work. And his packaging has to be right.

So think, be creative. Find a way to incorporate this in your own business.