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Can Paying Your Employees More Bring In More Equity?

Oct 16th, 2015
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  1. “When workers have more money, businesses have more customers”, this is the basic law of capitalism. The implication of this law is that it makes the middle class people become poorer - they are the true job creators! Thus, in the capitalist economy, a healthy middle class is the source of growth and prosperity.
  2. The X-Ray Of Business Models In Recent Time
  3. • The employees work for money - There is always the need for a product or service that will assist in solving human problem and so many employees are the individuals who offer their skills to produce such product and offer the service as well. In return, they receive income as payment for their skill and services offered.
  4. • Founders Work For Profit - The founders are leading the pathway with ideas for an inspiring future whenever innovation is harnessed. These great thinkers do not work for free. While they might not be working hard in the ditches and trenches every day, they are brainstorming within their minds and brains looking for ways to improve quality of life, and invent new products to make life much easier. These men and women should be well paid for their ideas and drive to see them to fruition.
  5. • Co-Founders Work For Equity - With these two parties, founders and co-founders working for the good of each other; thereby creating the plans that can be sold in order to make profit. Also, these two parties work to reap even more Equity within their company. That value provides them with an accrued net worth they can use to reinvest in other companies.
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  7. • Consumers Socialize For Equity – The consumer on the other hand will socialize for equity with the business instead of working to only get money to buy goods. The interaction of the consumer with the producer ends immediately after purchase, or shortly thereafter. The consumer’s hardwork and commitment (bilateral agreement) to engaging and interacting with the company earns them rewards or loyalty points that will convert to equity. This can be stock options, shares, etc.
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  9. The Concept Of Socialize For Equity
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  11. This concept proposes a beneficial yet active interaction (social capital) between the consumer and the products and services created by the company. Thus, by making use of the products, the consumer earns reward on a regular basis. The interaction is not restrained to only products and services but expands to sharing the idea with friends, families and relatives.
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  13. The consumer in this regard will be required to seek ways to enlighten people around about the products and services in order to benefit from this Equity. The interaction of the consumer with the business provides them with mouth-watering rewards for taken time to share with friends and family, and others.
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  15. Socialize for equity is an innovative concept developed for every project and business as well to help in achieving success in business and project in a single toss of the coin. It seeks to solve the problem of social incompatibility by creating an enabling environment for the end user and the consumer to partly own the outcome of business.
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  17. Answer To The Big Question
  18. For emphasis sake, let me repeat the question. “Can paying your employees more bring in more profit?”
  19. From the foregoing intricate discussions above, it points to the fact that employees are the heart and engine of any business. Therefore, the better their pay, the better the company or business they work in.
  20. This can only be achieved through making investment in employees. This investment comes in two forms: payment and training. It is unnatural to expect an employee receiving a low income to do great at job and to provide excellent service when they are busy thinking about what food to buy or eat. On the other hand, if employees are trained consistently; they can find useful things to do even when they are not working directly with customers.
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