I realize there are companies like Amway and Avon and many more just killing it. I understand many women cannot live without makeup and people need their essentials.
I just know for myself that I would always want to shop around. I would hate to have anything auto-ship. I would be the person that cancels after a month. I like places like Costco. I can't determine how much stuff I need on a monthly basis. Always trying to save momey and looking to cut monthly expenses.
So I know I wouldn't be a great customer so I can't see myself as a distributor.
For me, to create a true residual is to tie your income to something people pay every month that they must have. So what are some of these expenses.
1.Mortgage/Rent - would be great to be able to lower a mortgage and collect residuals. If that ever comes up I am in.
2.Cable/Phone/internet - Definitely interests me. No one can live without this stuff but people will not switch providers. I live in Verizon territory and everyone loves the service. If they can stay with Verizon and pay less, that's a winner. People can get Metro PCS for $50/ mo so competition is tough. Same with cable/internet. No one will switch providers. People are getting creative with Hulu etc. Not many choices with internet.
3.Water - Clearly need that. Nothing available here tho.
4.Food - Sure but tastes change constantly. No real monthly bill that comes in. Kind of sporadic. Take out etc
4.Utilities - Has my undivided attention. Everyone uses it 24/7/365. Everyone wants to pay less for it. No one can live without it. People go insane in power outages. Already in the budget. Bill comes in every month. The industry is deregulated. Everyone has a choice and can save money. The best option in my opinion.
I cant convince people to buy vitamins, juices, make up etc to look and feel better. I cant say my stuff is so great and dont buy the Kirkland brand at Costco.
But I can tell them hey I can lower your utility bill. You will still get the same bill from the same company. They will still service you during emergencies and outages. The only change is a line item on the bill and it will be a little cheaper.
On top of that you will get rewards points and there is a referral program where you can get your energy supply for free.
What!?!
That is tons of value. You don't ask your customers for money. There's no auto-ship. Product knowledge. You get to tap into a bill where if they lost their job and things were really tough, it would be truly the last bill they would ever not pay.
Mortgage - Many people in foreclosure or behind, short sales etc
Cell - Prob among the last to go. The service would cut down. Maybe lose the smart phone. Get the cheapest plan or a pre-paid
Cable - Possibly have to shut it. Definitely get rid of premiums
Internet - Tough to get rid of. Could tap a neighbors wifi
Gas/Electric - Maybe you would shut the gas in Florida. No one leaves their electric off for any period. If you arent paying electric, you arent paying anything.
Recession proof. Extreme value. People lose their minds without it. A no-brainer for me. What about you? http://bit.ly/pwropps
