The Entrepreneur Community Network™ Business Model
(Such as it is anyway – the whole “biz plan & biz model” thingies are written on a single cocktail napkin! And, on the other napkin, I’m still working around the water marks & rings befouling the marketing plan. Oofda!) 
The ECN is centered around building ‘real’ relationships and in helping one-another, as entrepreneurs – and as people. We are both a social and business community. As a “for profit” (tho’ non-commercial) business group, we measure our collective “profit” in a somewhat unconventional way. Our monetary overhead expenses are met through the voluntary cash donations of our membership, and cash from my own pocket.
The ECN has been successfully operated under these following principles for more than 13 years, first on MSN as a “group” and now, on an independent website I CAN control.
(By the way; if YOU would like to help support our efforts, the donation button is just over there, to the left of this column. ANY size donation would be most welcome!)
Principle 1: Give Everything Away – Almost.
From time to time I meet with other business people who ask the ‘behind-the-scenes’ questions about how things are working out for me, my company and The ECN. They enjoy using their corporate AMEX credit cards to buy coffee for me, and I enjoy drinking free coffee, thank you very much. Most of them don’t understand how I can consult and write for free – and still manage to pay the overhead and the bills. They can only see what they think is obvious, based solely on their own experiences and mindsets.
And they couldn’t be more wrong.
Understand, the traditional business model of information sharing is to give away 10% as a “teaser” – and sell people on the 90% still behind the curtain. I do quite the opposite – 90% (or more) is free. The 10% or so in reserve is for the folks who need specific help, best suited to a more in-depth corresponding format or personal consulting. Some information products are available and for sale at modest pricing – but all of the regular stuff I’m writing is free.
Oh, and I don’t do many outside commercial ads either. However, what I do endorse, has to be really, really good. And worth at least 10 times in ‘true value’ compared to what the seller is asking for whatever it might be. Period.
Principle 2: Don’t use people, help them.
Instead of asking: “What can you do for me?” (This kind of thinking is externally focused.) I ask questions like:
- How can I help you?
- What can I do to help tell other people about you?
- What are your goals?
- What is it you want or need?”
Principle 3: There is No Competition.
As I see it, there is no competition in this business. Others have helped a large number of people, and that’s pretty much my goal too, albeit in a somewhat different way. If you’re in a business where you have to compete with the store down the street – and one of you has to lower prices to bring in customers – good luck. You see, instead of external competition, the real competition we, as entrepreneurs face every day is INERTIA. The competition comes from within to get up every day and help people… solve problems, change themselves – and save the world from the evil forces of Winkum, Dip and Nod, Esquires. (And sometimes, from Dewey, Cheatem and Howe too!)
Principle 4: Lose the hard sell, or any ‘sell’ at all.
The thought of conventional hard-selling is a complete turn-off to me. I regularly walk out of stores that use guilt or scarcity tactics to sell me. (“Are you sure you don’t want the extended warranty? Because, just between us, these products tend to break down a lot.”) Selling that way plays on fear, guilt, or greed – and establishes unproductive, negative relationships.
I’d rather build my business ventures, and my relationships in general, on positive connections. If someone says: “I’m thinking of buying this, can you sell me on it?” My answer is invariably: “No, sorry… I can tell you about it’s features, I can answer your questions and help you understand what benefits you’ll gain from it, but I can’t sell you on it.”
Also, if someone ever complains about something I’ve sold them (it’s rare, but some people do buy things, then just as quickly ask for a refund), I give them their money back right away, no hassle whatsoever. Life is too short to worry about those kinds of people.
Which brings me to…
Principle 5: Give people what they want.
If you don’t think any of these are an uncommon business principle, good for you – that means you’re somewhat isolated from the “normal” sales and marketing mindset, or sales-folk that try to sell you things you don’t want. My view is that if you have to overtly persuade, connive and convince – you’re in the wrong business. Meet people’s problem-solving needs instead. Sell what people want to buy. If your product meets needs and helps solve a problem, you’re on the right track.
Is the product you’re selling a good idea? Here’s the litmus test:
- 1) Desperate Need – People NEED (or think they need) your product or service.
- 2) High Value – You deliver high perceived value. You’re proud of what you sell.
- 3) High Margins – You make real money from it.
If you have all three, you’re probably on to something good…
Principle 6: Regularly turn down money.
The first part of this principle is easy – turn down money from difficult people. Don’t hard-sell; invite customers to participate in a conversation with you. Give them their money back and walk away from anyone who becomes “difficult.”
The second part is however, more difficult to come to terms with. The second part involves turning down money, not because of rude people, but simply because something just isn’t right for YOU!
For example, years ago I used to feel guilty for giving up thousands of dollars in lost sales because I really didn’t want to cold-call on people. I had to learn to greatly increase my sales efficacy in other, less personally objectionable ways. I’ve matured over the years – so now I don’t feel the least bit guilty about cold-calling. I still don’t do it, but I have no feelings of guilt, should I choose to do that.
What’s more, those “other ways” I learned from necessity hold me in good stead even now.
Principle 7: Don’t listen to any one person – listen to everyone.
I try to follow this rule not only in business, but in life in general. If one person doesn’t like your work, product or service – don’t worry. Instead, listen to what everyone says. Get feedback from the entire community, and generally pay attention to what’s going on around you.
And now, THE MOST IMPORTANT PRINCIPLE OF ALL.
Principle 8: Always Expand the Pie.
In my business dealings, I don’t lose if someone else gains. When I gain, no one else loses. This is a result of some of the ideas I’ve explained above – the fact that there is no competition, I try to give people what they want, I don’t play sales games, etc. and so on. If your business (or your job, or whatever it is you do every day) is built on taking something from somebody else, I really don’t envy you. If you were to ask me, I’d say you’re in the wrong business. You might as well go out and repossess cars, or work for a collection agency, or be a prison guard… or something that requires little or no conscience when taking things away from people.
Thankfully, sales-folks and businesses that “get it” are becoming more commonplace. And I’m far from alone in this… In fact, I really think that entrepreneurs who adopt this mindset will become more and more successful, while ‘traditional’ sales and business models continue to struggle… and many times, fail due to poor sales performance.
Funny thing: I recently saw that someone is selling a $395.00 report (it used to be $795!) about using Twitter effectively in business (here’s the link, see for yourself! http://shortyreport.com – if it still works)… I thought that it was pretty funny, and still do. From a marketing standpoint, I understand how it works – some clueless group of executives from big companies will buy it and feel like they are getting a good deal. Perceived value is everything, so perhaps it’s worth that much to some people.
But assuming you don’t have $395 to waste on yet another near-useless (Twitter in this case) business guide, you can learn how business works on Twitter (or Facebook, or a handful of other social networking sites) for free.
The hard part will be saying goodbye to some old assumptions, and no $395 P.O.S. report can help you do that.
A Few Final Words.
By the way, the same people (mainly, the losers in life’s lottery) who’ll say “Welcome to the Real World” will say the same thing about some of these rather uncommon ideas… “That’s not how it works… That’s unrealistic…” etc. If you’re already in business, you can safely ignore this sort of feedback.
The better questions to ask are: “Who is the judge of your success? … What does success look like for you?”
Yes, I’m well aware that The ECN as a ‘for profit’ business is unsuccessful by some folks’ standards. I’ve foregone costly expansion, turned away advertising money, and done almost everything myself. In the hands of another business person, I don’t doubt that they could have achieved much better financial returns – perhaps even with a lot less work.
It’s just not who I am… nor is it what I wanted to do.
The ECN never was intended to make money as it’s “profit” – and it’s been a labor of love for better than 13 years. It still is too. As the old saw goes: “If it’s fun, it ain’t really work.”
I wouldn’t change any of it for all the money in Zimbabwe… or is that Nigeria? Whatever.
I think the “profit” I’ve made in this business has been nothing short of excellent. I think I’ll call that a success. And I’m happy to share the profit with every member we’ve ever had too.
We’re all richer for the experience. And that’s a win all around.
I’d welcome your comments, additions and suggestions… please feel free to tell me what YOU think.
Old Nikko
