Virtual Perpetual Consumption

Virtual Perpetual Consumption

The 21st Century Way to Create a 6 Figure Residual Income.

This little diagram illustrates what is called the “cycle of perpetual consumption”. The key element here is the habit pattern of consumption. We are all creatures of habit, and habits are incredibly powerful, Once a customer has established a habit pattern of consumption they are unlikely to change unless some event happens to interrupt the pattern and cause a change to occur.

Let me explain what I am talking about…

To create a really successful sustainable business a minimum of four fundamentals must be in place.

  1. Multiple customers with a continuous need
  2. A solution to satisfy their need
  3. An efficient way for the customers to purchase the solution
  4. The customers to consume the solution and then need to shop again

By way of example, some product sets which you will be familiar with that meet the above criteria, are the essential consumables which can be found in numerous isles in any supermarket or grocery store. Everybody needs these and so every household has existing established habit patterns of consumption.

If you have a need that is continuous and a solution that is consumable, and an established habit pattern of consumption, then you have what I call a pattern of perpetual consumption. Now the flip side of perpetual consumption is perpetual supply. This is usually done by a business which provides the solution to the customer. What that business needs to do is create a system of matching perpetual supply to feed the cycle of perpetual consumption. If you can design the whole system to work over the Internet, then you have created a cycle of virtual perpetual consumption matched by virtual perpetual supply.

I recently came across just such a business model. Using some unique proprietary products and delivering over the internet, this company has created just such a virtual perpetual supply business…. a business that is win, win, win.

  • The customers get a vastly superior solution;
  • The creators of the business profit from the supply of that superior solution to their happy satisfied customers;
  • All stakeholders in the business benefit by sharing in the revenue stream generated;

This is a truly a 21st century business model, that is radically changing existing paradigms of supply and consumption and the delivery of value to customers. No money is wasted on traditional advertising, instead the offerings are shared using social networking, and social media like for example, this blog post.

Using a simple loyalty program the vast majority of customers remain loyal customers, they are ordinary consumers who enjoy the benefits of an easier more efficient way of satisfying some of their essential supply needs, and they shop again and again, month after month.

The really clever aspect of this model however, is that they have also incorporated a simple, yet generous, leveraged affilate referral program so that for the business minded person they have created an opportunity to partner with the company and earn recurring commissions on products consumed by customers those partners have referred.

Just to give you some perspective of how this business is being accepted in the market place, at the time of writing, the total revenue stream being generated is in excess of eighty million dollars per month ($80,000,000) and growing…with thousands of new customers opening an account for the first time every month!

The beautiful thing is that because the business has been set up using a a co-operative business model a large proportion of the revenue generated is redistributed straight back to customers in the form of loyalty rewards and referral bonuses, and those who are participating in the affiliate program are earning some significant amounts of  recurring, residual income.

This business is delivering some amazing value to consumers, and it is well worth checking out, so if you are curious to know more, you can drop me a line here. I’d be happy to share with you what I have learned about it.

 



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