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Page 64 GO IT ALONE!
Amazon.com’s Associates program (the first online affiliate program of its kind with over 900,000 members), which allows entrepreneurs to create their own specialty stores with Amazon.com providing the products, as well as the necessary commerce and fulfillment services. The extensive involvement of these four firms in fostering go-it-alone ventures is more than a coincidence. It’s a strong indication of the growing demand for go-it-alone services: These companies generate substantial revenues by providing ever more innovative services to start-up entrepreneurs. It’s also a strong demonstration of the growing vitality of go-it-alone businesses. In cases such as Google’s AdSense program and Amazon.com’s Associates program, these large firms significantly enhance their own profits by making it simple for entrepreneurs to create specialized businesses using their services, with the entrepreneur and the larger firm sharing the resulting revenues.
Case Study: How Application Service Providers Create a Business Opportunity for China Manufacturing Network
Everette Phillips is cofounder of China Manufacturing Network, LLC (www.sourceglobally.com/CMN/), in Irvine, California. The company has established relationships with nearly 100 family-owned factories in China. In the United States, the company has built a substantial customer base of small companies that are seeking to have parts manufactured in China quickly and cost-effectively. In the past, this kind of offshore matchmaking service would have involved high complexity (in processing, negotiating, and tracking each order) and required significant numbers of employees. But Phillips was able to create a go-it-alone business that relies on an ASP to handle a complex supply chain. China Manufacturing Network’s precision-manufacturing division takes
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GO IT ALONE! Copyright 2004 by Bruce Judson. Reprinted by permission of HarperCollins Publishers. All rights reserved.
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