Competitive Vs Cooperative - A Comparison of Two Common Business Models

One of the things I love most about the way we do business in this industry is the fact that we use a cooperative business model rather than a competitive one like the one used in Corporate America. Network Marketing is actually one of the most ethical ways of doing business, and that is largely due to the fact that the cooperative business model is commonly used.

The Competitive Business Model

The competitive business model, as used in Corporate America, is much more common. In this model, if someone wants to advance in the company they literally have to wait for someone to quit, die, or retire. It causes the workplace to become very cut-throat and competitive.

You wouldn't want to share all of your success secrets with a business associate and help them to be more successful only to run the risk of them getting the promotion instead of you, would you?

It ends up becoming an "every man for himself" kind of environment, and often times this leads to a lack of trust, among other things. It's hard to really befriend someone when your consistently competing with them, isn't it?

The Cooperative Business Model

Now let's look at the cooperative business model that's used in a lot of network marketing companies. In this model, we get paid on the efforts of other people. Therefore, it's in our best interest to help others succeed.

When I sponsor someone into my business, I want them to be as successful as possible. I am going to get paid for all of their efforts and successes, and I am willing to do everything I can to assure that they are successful. I will provide coaching and training for free, and I will make myself totally available for this person.

Not only that, but in this model it's a level playing field. This means that there's room for all of us at the top... the company would love it if we all were constantly advancing in rank, therefore there's no competition.

Let's Compare The 2 Business Models For A Moment.

The competitive model, like Corporate America, is shaped like a pyramid. The CEO is at the top of the triangle, under him are the VP's, then the middle management, etc. all the way down to the minimum wage employees who are sweeping the floor. In this model, the people at the top got there due to their education, experience, or relationship with someone they know at the top.

There's absolutely no chance for the janitor way down at the bottom of the pyramid to ever make his way into one of the VP slots. It's highly unlikely this would ever happen within the political structure of this business model.

In the cooperative model on the other hand, EVERYONE comes in at the bottom. It doesn't matter what race or religion you are or what kind of degree you hold. We advance in rank based on our performance alone, and those who produce the most get paid the most.

It's a completely level playing field, totally fair and ethical. Everyone has the same chance at succeeding... sometimes the ones we least expect are the ones who are the most successful!

It's all about action and results, not education. As a matter of fact, because of the cooperative nature of this model, the education needed is usually provided by the person or team that sponsors a new person... happily and for free!

Is Community Important To You?

It's because of the way we do business in this industry that we are able to form these tight knit communities of people that are really there for each other through thick and thin. We are continuously helping each other rather than competing with each other, and the types of friendships that are formed here are deep and lasting.

Rather than the "every man for himself" environment, we work in a "one for all and all for one" environment, being of service to each other and supporting each other. Having experienced both myself, I'd choose the cooperative model over the competitive one any day... it's really a lot more fun.

Expect Abundance,

Amy