I talk to and get pitched by startups constantly and a major part of the pitch is about their business model and how they make money. It’s obvious. In some way shape or form, it’s ALWAYS charge the broker or the building owner. PERIOD! WITHOUT FAIL!
But I have a little hint, ok maybe not so little hint for them. Yes, it’s about revenue and then some.
And of course…….
You need to make money.
You need to have customers.
You need to charge that customer to make money right? It is business 101 after all is it not?
So how’s that been working for you?
Don’t bullshit me. I know the answer, not at all, that’s how it’s been working.
So what could work, no even better what is working right now?
It’s called revenue sharing.
What, too simple a concept? You are like yea, yea but our product…..let me stop you right there.
I don’t GIVE A SHIT about your product.
It’s a commodity.
And let me pile on here, your service is a commodity also.
So your product and your service behind it are worth SHIT.
So how can you compete?
Wait let me hang here while you try and write a dissertation on why YOUR...just YOUR product is so so fucking special.
Ok, I’m done waiting because I don’t care.
There is only one way you are going to succeed and that is to create revenue.
Wow, what a concept, create Revenue. You know how I push the envelope.
To do that you need “customers” paying customers? Yes, right? How about, NO!
You need partners with whom you can share revenue.
To my point and for example Building owner A has a 50 story asset.
Within that asset are people working and presumably someone is paying for them to be there.
Now if you are lazy as hell and did not read my article stating that every human being is a potential tenant and revenue source, SHAME ON YOU.
So if the building owner can and should maximize the value of their asset why would they not look at all revenue sources?
OMG, I just had a thought…
Side Rant/Borderline Genius/Godfather moment:
In the near future, there will be no leases just the ability to generate revenue from each individual occupying a building.
Yea reread that one!
Let me explain.
If I were let’s say IBM I would go to a building owner and say “you want my 6000 people in your building? Pay me! Pay me to let you make money off of my people. Wait, better yet let’s share the money you are making off of them with us (IBM) otherwise we will find someone who will.”
Holy Shit, now I must say that is brilliant even for me. (Ego, what Ego?)
Think about that concept as the CEO of any company, you just turned one of your biggest costs into a revenue stream and how can you not make that decision for your shareholders.
If you own a building…….oooooh not so much.
You know who is already doing this right? Come on seriously? Seriously!
Space as a service yea sure how about space as a revenue generator or better yet, People occupying space as a source of revenue for the corporation.
What in the hell is IBM’s number? I need to pitch that NOW!
Why do I not copyright and trademark this stuff?
What does that do to commercial real estate?
First off it blows WeWork out of the water. Hey, for once I go after them a bit. Are you proud of me?
Second, it jumps right over space as a service to individualizing space as an experience.
Yea, I’m owning that shit for like 5 minutes #SpaceAsAnExperience.
Think about how your “workspace is tailored just for you, anything and everything you think it should be it is.”….hmmm.
Sounds too good to be true? I think not.
You go on vacation and it’s what…just what you want or…you don’t ever go again and you raise hell and ask for your money back.
Work should be what….hell and making THE MAN rich while (whilst, <<<< could not resist that one) doing it?
Oh, I don’t think so.
How much value does that one person have?
I say again ask any CEO what the most valuable part of their company is and the answer 1000% of the time is people.
So, happy productive people at work = $$$ for the company.
Happy productive people generating revenue by just being there = GENIUS.
Company A partners with Building owner A to share the revenue generated by the people occupying the space.
Of course, you say IT WON”T WORK!
THE NUMBERS DO NOT……
THE DEBT SERVICE…
THE MAINTENANCE COSTS ARE…..
THE REAL VALUE OF…
THE OWNER OF THE BUILDING CAN’T…OR WON’T……
So it shifts…as of today.
How many CEO’s of companies do you think want this?
How many do you think NEED this?
How about just one single person?
They are working their ass off and want to get paid for their time.
You want the same. But at the expense of……
But, this is crazy right?
You and I both know it’s not.
Think of the layers and layers of costs that are passed on to…
And then sit back and think……
What Happens When Your Tenant Demands To Be Paid To Occupy Your Space?
+1. Leave me alone I’m Googling the CEO of IBM and trying to get a meeting.
+1+1 I did mention no leases.