The Water Factory is a network marketing firm that sells Water Genie home water filtration systems. The Water Factory has chosen the network marketing business model as a way of creating a recurring revenue structure in a home business. Aitch Tuoo, the founder and owner, has done a significant amount of research and has determined the filtered water market is a large, quickly growing market. People are willing to pay up to five times the cost per gallon for water than they are for gasoline.
By using the network marketing business model, Aitch Tuoo uses personal contacts as his target market. This is advantageous because a bond has already been established with these prospects, making it easier for Aitch to turn prospects into leads. Additionally, network marketing creates recurring revenue streams through commissions that Aitch earns for salespeople he recruits. Aitch also receives revenue for each salesperson his sales people recruit. This revenue stream then turns his job into a business, a way to earn money even if he is not working.
The Water Factory will reach profitability by month 12 and will have modest, but steady, profits by year three.
The objectives for the first three years of operation are outlined below:
- To create a service-based company whose primary goal is to exceed customers’ expectations.
- The utilization of The Water Factory products by at least 10% of the local population.
- To increase the number of sellers by 20% each year.
- To develop a sustainable home-based business, surviving off of its own cash flow.
The Water Factory’s mission is to provide customers with the finest quality water filtration units. We exist to attract and maintain customers. When we adhere to this maxim, everything else will fall in to place. Our services will exceed the expectations of our customers.