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| − | In [[The Personal MBA|The Personal MBA]] an ''agency'' focuses on marketing and selling an asset you don’t own. An agency can earn a commission by establishing a new relationship between a source and a buyer. It is one of the [[Twelve standard Forms of Value|Twelve standard Forms of Value]] (Form of Value #7 of 12). Sellers can generate value through an agency which otherwise would not happen. Buyers can benefit from an agency; good agents can find cheap and good assets.
| + | Agency |
| − | The key challenges to make an agency successful are:
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| − | * Commission should be high enough to justify the effort
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| − | * Focus should be on closing the transaction as fast as possible
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| − | (my own additions not from the book) The dangers of an agency are:
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| − | * Who owns the end customer and can [[Appropriability|appropriate]] the value?
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| − | =Key Points:=
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| − | * The agency focuses on marketing and selling an asset you don’t own. By establishing a new relationship between a source and a buyer, you earn a commission.
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| − | * The keys to success in this form of value are:
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| − | ** Find a seller with a valuable asset.
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| − | ** Establish contact and trust with potential buyers of that asset.
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| − | ** Negotiate the terms of sale until an agreement is reached.
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| − | ** Collect the agreed-upon commission from the seller.
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| − | * The benefit for sellers is generating sales that without an agency might not happen.
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| − | * Buyers benefit by finding assets to buy that the agent, whom they trust, filters for them.
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| − | * It’s critical to keep a high enough commission to make the effort worth it.
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| − | =Questions for Consideration:=
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| − | * Does delivering value via acting as an agent or affiliate make sense for your business idea?
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| − | * If so, what do you need to plan for to make it successful?
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| − | Source: http://book.personalmba.com/agency/
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| | [[Category:mbi]] | | [[Category:mbi]] |
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