As for the ‘design’ of a business model: there are 3 main ways to catalyse economic activity within a community when starting with an existing product.
- Franchise Model
- Trade Model
- Co-operative Model
Franchise Model:
- Offers a business model, brand and licensing system.
- People buy a franchise because of the strength of the brand and operational support.
- Options to sell:
- Brand kits
- Regional organization/ sale area management
- Trainings – sales, accounting
- Materials connections
- Financial System & Organization:
- Various options – one time fee, annual license fee etc.
Trade model:
- Recognise water distribution and management as a trade.
- The project decides if it is part of this trade and can take on an organizer role similar to union management or a salesman role.
- Sells to this trade and those interested in joining the trade.
- Options to sell:
- Materials
- Trainings
- Financial System & Organization:
- Profit comes from materials or from training fees or service provision i.e. repairs.
Basically this model is the same as any product developer who wants industry professionals to adopt their product. Need to sell it to them, it being the material or the idea. and make sure they have the skills to use it and sell it themselves.
Co-operative model
- Collective organization & profit sharing.
- Community self organizes and decide their management and organizational systems
