In this post we consider a simple way to stimulate depressed local economies. First of all, we need to understand the problem that exists in depressed local economies.
The problem
In conditions of economic crisis and inflation the main problem is reduction in real purchasing power of consumers, therefore traditional marketing and advertising methods are not efficient (or do not work at all) for businesses. When people have no sufficient income to buy products and services they want, they reduce their purchases to basic necessities (food and shelter). This leads to a depressed economy.
The Solution
To attract customers, stimulate sales, and keep customers loyal businesses should help their customers to increase their purchasing power by sharing a portion of business income with the customers.
A business owner can call to a client and say: “I want to help my clients in hard times and to give them opportunities to get passive income streams from my business by means of participation in income sharing programs”.
A popular form of compensation for referrals is a refer a friend program, in which a business pays a fixed reward (or % from sales) to a person for direct referrals. Many crypto businesses have such type of programs. The problem with this type of program is that the person is not rewarded for indirect referrals. This problem exists in many types of such programs: affiliate, referral, loyalty, etc.
Let us, consider an example where you referred 10 clients and each of them also referred 10 clients.
Therefore, in total a business has 110 new clients (10 referred by you directly and 100 referred by you indirectly). If these 100 clients also refer each 10 persons, the company will have 1,110 clients and so on. If not your referrals, this business would not have so many clients, but the business does not provide you with income from sales generated by all these customers. The only reward you have is for 10 direct referrals. Is it fair?
Income sharing programs (ISPs) pay you regular income as a share of sales generated by direct and indirect referrals (up to a predetermined level). Therefore, you have in addition to active income (for direct referrals) also passive income (from sales generated by the indirect referrals) and this income is comparable with income from a job, micro-business, or other employment. As we can see, income sharing programs offer customers the most efficient option to increase their income (as measured by rewards per time and efforts). Participants of ISPs receive real money now, not tokens with hopes that in the future these tokens may have a value.
If businesses in a depressed local economy offer ISPs to customers, the customers will be able to increase their incomes via participation in these ISPs. With increased purchasing power they will be able to buy products and services they want and this activity will stimulate the depressed local economy.
On average we have over hundred items on our contacts lists. Our relationships with other people is our social capital we can use to earn income and help local businesses and economies. The new deal between a business and a customer is: a customer refers to the business new clients and the business fairly compensates the customer by sharing income (via an ISP), generated by directly and indirectly referred new clients, with this customer.
Anyone can offer such type of deal to any business.
A popular misconception about an ISP is that it is a sort of a MLM scheme. This is incorrect. In MLM participants are forced to buy products/services from MLM companies and then resell them to their friends, relatives, etc. In ISPs participants are not forced to buy and resell products/services, instead they are rewarded for referrals (direct and indirect). For the reason, that passive income from indirect referrals is comparable with income from a job or micro-business, such programs give customers a new option to increase their income without a need to work. This new income will be used to buy products and services from businesses. Such activities will stimulate the depressed local economies.
This solution does not require governments help, billions from central banks, stimulus, grants, loans, etc. It gives a tool to solve the problem by consumers and businesses themselves.
The problem
In conditions of economic crisis and inflation the main problem is reduction in real purchasing power of consumers, therefore traditional marketing and advertising methods are not efficient (or do not work at all) for businesses. When people have no sufficient income to buy products and services they want, they reduce their purchases to basic necessities (food and shelter). This leads to a depressed economy.
The Solution
To attract customers, stimulate sales, and keep customers loyal businesses should help their customers to increase their purchasing power by sharing a portion of business income with the customers.
A business owner can call to a client and say: “I want to help my clients in hard times and to give them opportunities to get passive income streams from my business by means of participation in income sharing programs”.
A popular form of compensation for referrals is a refer a friend program, in which a business pays a fixed reward (or % from sales) to a person for direct referrals. Many crypto businesses have such type of programs. The problem with this type of program is that the person is not rewarded for indirect referrals. This problem exists in many types of such programs: affiliate, referral, loyalty, etc.
Let us, consider an example where you referred 10 clients and each of them also referred 10 clients.
Therefore, in total a business has 110 new clients (10 referred by you directly and 100 referred by you indirectly). If these 100 clients also refer each 10 persons, the company will have 1,110 clients and so on. If not your referrals, this business would not have so many clients, but the business does not provide you with income from sales generated by all these customers. The only reward you have is for 10 direct referrals. Is it fair?
Income sharing programs (ISPs) pay you regular income as a share of sales generated by direct and indirect referrals (up to a predetermined level). Therefore, you have in addition to active income (for direct referrals) also passive income (from sales generated by the indirect referrals) and this income is comparable with income from a job, micro-business, or other employment. As we can see, income sharing programs offer customers the most efficient option to increase their income (as measured by rewards per time and efforts). Participants of ISPs receive real money now, not tokens with hopes that in the future these tokens may have a value.
If businesses in a depressed local economy offer ISPs to customers, the customers will be able to increase their incomes via participation in these ISPs. With increased purchasing power they will be able to buy products and services they want and this activity will stimulate the depressed local economy.
On average we have over hundred items on our contacts lists. Our relationships with other people is our social capital we can use to earn income and help local businesses and economies. The new deal between a business and a customer is: a customer refers to the business new clients and the business fairly compensates the customer by sharing income (via an ISP), generated by directly and indirectly referred new clients, with this customer.
Anyone can offer such type of deal to any business.
A popular misconception about an ISP is that it is a sort of a MLM scheme. This is incorrect. In MLM participants are forced to buy products/services from MLM companies and then resell them to their friends, relatives, etc. In ISPs participants are not forced to buy and resell products/services, instead they are rewarded for referrals (direct and indirect). For the reason, that passive income from indirect referrals is comparable with income from a job or micro-business, such programs give customers a new option to increase their income without a need to work. This new income will be used to buy products and services from businesses. Such activities will stimulate the depressed local economies.
This solution does not require governments help, billions from central banks, stimulus, grants, loans, etc. It gives a tool to solve the problem by consumers and businesses themselves.
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