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Saturday, June 21, 2008

The IE-Network model means business

Subscription, Transaction, and Advertising

These are, according to Scott Cohen in, Business Models That Mean Business, the three types of business models in existence. My point is not to argue or dispute the assertion. Rather, I prefer to size the at-home IE-Network (Independent Enterprise Network) model up against this criteria.

The IE-Network model is a subscription-based model for the company. It is a transaction-based model for members as they create and sell their product or service for their clients. Traditional advertising involving the use of media and its expenses is the members' choice.

The IE-Network model is not an Internet business. Although it will have a web presence registration of new members is face-to-face, strictly.

The IE-Network model does not rely on advertising, Often small business can not afford and when they do spend on advertising it is a wild shot. That's not to say there is no advertising, but any advertising expenditures are so minimal as to be negligble. As such, advertising by members is neither required nor expected, though as they are independent they are free to do so if they choose. Advertising is by word of mouth.

This statement by the author is as true as it is powerful of the IE-Network model:

"So, rather than attempt to change the behavior of our entire target audience or impose a "transaction" model on an inappropriate market, we created a platform that facilitated the deal-making process while still providing value and a scaleable, recurring revenue stream."

Specifically, the IE-Network model:

Facilitates - the process of procurement of products or services by retailer/reseller clients through a local network of Independent Contractors (Enterprises).

Value - is in the production of Customer-Made products by IE-Networks for the retailer/reseller clients

Scaleable - inventory for the retailer/reseller means stockpile inventory reduction or elimination as well as the flexibility to affect quick changes as needed or desired.

Revenue - flows in three different forms for members; personal productivity, recurring (residual), and bonuses.

Clearly, the IE-Network model is a business system. A business system generates revenue increasingly whether you are in the shop or out shopping. Membership in IE-Networks is open to all, whether independent contractors or retailers/resellers.

Initially, the at-home IE-Network model will launch in the areas of apparel and computer systems builder. Members need not be familiar or have knowledge of a prospective member's area of expertise to register them in the IE-Network system.

Furthermore, IE-Network members can excercise their option to operate their business system for the residual income and bonuses it can generate without themselves being involved in production of products or services.

Compensation for registration of new members is absolutely prohibited by the company, state and federal law.

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