Someone ALWAYS Pays – A Business Truism

Irrespective of whether a company’s business model is based on direct sales or pyramid schemes, personal value or freemium at their very core all business models are united in the simple premise that; someone always pays. I’ve understood this, as I am sure anyone in business has, for many years.  No matter how altruistic one may feel the process of doing business costs money, and unless someone pays for those costs that business very rapidly is going out of business.

Shelly Palmer, MD of Advanced Media Ventures Group LLC articulated this simplicity brilliantly in his recent blog;

There are only three business models: I pay, you pay or someone else pays. That’s it.

I pay means that I (the publisher of the content) am willing to fund the creation, production and distribution of the content for my own purposes.

You pay means that you are willing to pay me for my content.

Someone else [They pay] pays means that a third party is willing to pay me so that you can consume my content.

Simply no matter what the business model being adopted someone always pays. This works well for me; I’m quite simplistic in my view on the world, breaking things down into basic building blocks.

When talking about those business practices that have impacted upon consumer privacy, for me, once one can accept that really all business models are much the same and that emerging models really can’t be to blame one can move on and start to look for those areas more culpable.

What are those areas?  Well I think that the payment mechanisms that underpin business models leave an audit trail of their impact but that’s another story.