MANA recently moved its files from our own central server into the cloud. So now we can avoid all kinds of costs that were associated with owning our own server:
- Server hardware maintenance.
- Server software maintenance.
- Electricity to run the server.
- Physical security for the server.
- Firewall security for the server.
- Air conditioning systems to keep the server cool.
- Redundant data backups.
Now we only pay for storage as we consume it. So if we need only a little storage, the costs are very low. If we start to consume more storage we’ll pay more, but the only reason we’ll need more storage is if we have more members (and more member income). So our costs only go up when our income goes up, and if our income is going up then we can pay for those added costs out of our added income.
And when we need even more storage, will there be an ample storage for us to tap into? Absolutely! There is a whole network with all kinds of capacity ready whenever we need it, available on a flexible, pay-as-you go basis.
“Our costs only go up when our income goes up, and if our income is going up then we can pay for those added costs out of our added profits.” Is this starting to sound like any other industry you know? Let me give you a hint.
A manufacturer recently moved from a captive direct sales force to manufacturers’ representatives. So now the manufacturer doesn’t pay for:
- Fixed salespersons’ salaries.
- Health insurance premiums.
- Worker’s Compensation insurance.
- Automobile mileage reimbursement.
- Computer equipment.
- Travel and entertainment expenses.
- Human Resources costs.
Right now, that manufacturer finds that he can fill his manufacturing capacity with a representative network that includes Wisconsin, Illinois, Indiana, Michigan and Ohio. But if his manufacturing capacity increases, he knows that he can always add to his network with representatives from neighboring states like Pennsylvania, Kentucky and Minnesota. And he can continue to recruit representatives from the rest of North America, or around the globe.
Manufacturers’ representatives began offering outsourced salesforce services through flexible, pay-as-you go networks at a time when “the cloud” meant only stratus, cirrus, or cumulus. Between the cost savings and the expertise and experience representatives bring to their relationships with their manufacturer partners, it’s easy to see why forward-thinking manufacturers worldwide continue to choose the flexible, pay-as-you go outsourced system of selling over inflexible, pay-regardless-of-results captive direct sales forces.