(STARTUP TO UNICORN) WEEK 5: ECALATING THE RELATIONSHIP TO BUILD INFLUENCE - WILLIAM EASTMAN

Today we finish the overview for building an organization that can survival a pandemic, a black swan event. I affectionally call it 'idiot proofing' because major external events are usually driven by bad decisions; you didn't make but everything you built is threatened.

A quick review of the last 3 shows we shared techniques for using Networking as a Business Model. Then we moved to Outsourcing (Alliances) to the network for competencies your business doesn't posses and non-essential to your success. Last week, we covered how to build a scalable platform that encompassed the entire network and pulls these three elements together..

Today is about understanding the Network Effect Model and how to use Outsourcing / Alliances on a common Platform to make it a reality.

EPISODE 17: Pulling It Together
The math of network effect
We need to acknowledge the thought leaders on this subject and our mentors for building IBGR's network - nfx (https://www.nfx.com). We started on this journey without a map until a chance search found the nfx bible - many thanx for guidance.
                       P = I ( F x R x U x V)
                              -------------------
                                     D x N
Topics

• It's not really a math formula but a relationship model
• P = Perceived Value - what value does members of the network receive from active membership

Keywords: network effect, perceived value

EPISODE 18: The Numerator
Sorry if we are using terms for everyone that hated math but it fits here. The Numerator is the top part of the problem and describes how many elements we are dealing with. What are all of the elements we must manage and trend in the right direction.

Topics

• I = Influence is the multiple of... 
  • ​F = Frequency - the amount of interactions between the network and members, and members with members
  • R = Relevant - the value members sought when joining
  • U = Unique - how different is the value (products, services, experience) from the competition
  • V = Value - transactional (1 time) vs transformative (x times)

Keywords: influence, contact frequency, relevance of materials, uniqueness of materials, long term value

EPISODE 19: The Dominator
The Dominator is the bottom part of the problem and describes how many elements we are dividing by. This is used to determine how successful the top elements were treated. Like any fraction we want the numerator to increase and the dominator decrease. Don't get too literal here - go with the flow, it works.

Topics

• D = Distance - decrease the emotional distance faster than we increase...
• N = Number (Members)

Keywords: emotional distance, membership

EPISODE 20: What To Measure
These seem like common business metrics and it is except in this case it represents what is critical to understand the value customers perceive is received from our offer and the relationship.

Topics

• Acquisition - bringing on new members of the network
• Competitor - benchmark against other networks
• Engagement - are the interactions frequent and balanced (network initiates and member initiates)
• Market - share of the total market
• Financial Performance - ability to monetize the network

Keywords: network metrics, member acquisition, competitor metrics, level of engagement, market share, financial performance

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