A win-win business model

Once upon a time, there were companies out here which gave people the tools to set up their own Internet business. These were professional tools worth many $1,000s, out of reach for people like myself and the 100s of others who then built these companies into mega-corps.

The one to catch me first offered a full web hosting business with design tools built-in I could operate through my web browser. Full training with tutor videos was free. In return for all of this, they kept 75% off the top of all hosting fees.

Under these terms, I was able to establish an income of a few $100 per month with a dozen clients at one time plus I got to charge whatever I wanted for my services and keep all of it. Some people were much more successful than me with up to 100 clients which would at a minimum be about $2,500 per month Income.

The real puzzling thing about it all came a few years down the road. Once their servers were full and they had locked in auto-payments for all of the clients guys like me found for them, they decided that paying commissions was no longer in their best interest.

They had a win-win system running where everybody was getting something and all they had to do was sit back and collect the money from the folks we sent.

In the early days of setting up business out here it could cost more than $5,000 to set up a website to handle credit card payments. Along came another company, offered all the tools needed to set a client up with online payment processing with zero start-up costs.

This one was win-win-win. My clients saved a bundle on start-up costs, this company gained what would likely be a client for life, collecting a percentage of all transactions and I received a 5% commission on everything.

Once they were successful, they trimmed the commission down to 6 months then eventually dropped it all together. Of course they continue to harvest the fruits of all our labor.

There’s been a dozen times on the road behind when I was standing with co-workers in a situation similar to those above suggesting, “What the hell guys, we built that one, let’s build one for us.” Only God knows for sure why this always caused intense laughter and or derision. I certainly don’t.

 

 

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