In [[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]] (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.
The key challenges to make an agency successful are:
* Commission should be high enough to justify the effort
* Focus should be on closing the transaction as fast as possible
(my own additions not from the book) The dangers of an agency are:
* Who owns the end customer and can [[appropriate|Appropriability]] the value?
!Key Points:
* 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.
* The keys to success in this form of value are:
** Find a seller with a valuable asset.
**  Establish contact and trust with potential buyers of that asset.
** Negotiate the terms of sale until an agreement is reached.
** Collect the agreed-upon commission from the seller.
* The benefit for sellers is generating sales that without an agency might not happen.
* Buyers benefit by finding assets to buy that the agent, whom they trust, filters for them.
* It’s critical to keep a high enough commission to make the effort worth it.
!Questions for Consideration:
* Does delivering value via acting as an agent or affiliate make sense for your business idea?
* If so, what do you need to plan for to make it successful?

Source: http://book.personalmba.com/agency/
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mbi_public
created
Sat, 15 Jan 2011 19:03:11 GMT
creator
dirkjan
modified
Sat, 15 Jan 2011 19:03:11 GMT
modifier
dirkjan
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Term
The Personal MBA
creator
dirkjan