toms-business-model

What is the one-for-one business model?

Blake Mycoskie, TOMS Shoes‘ founder, came up with the one-for-one business model. When traveling in Argentina, he noticed poor kids grew up without shoes. He decided that for each pair of shoes sold, the company would donate a pair back to them. The one-for-one model innovated in comparison to traditional business models.

Why is the one-for-one business model effective?

By leveraging on a compelling value proposition (for each product bought, one gets donated) a company can leverage on the word of mouth, enthusiasm and social networks effects of aware consumers. In fact, the one-for-one business model proved quite effective for TOMS Shoes that with a minimum effort regarding marketing and sales has been able to generate hundreds of millions in net sales in 2017.

How Does TOMS Shoes Make Money? The One-For-One Business Model Explained

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Gennaro Cuofano

Gennaro is the creator of FourWeekMBA which he brought to reach about a million business students, professionals, and entrepreneurs in 2019 alone | Gennaro is also Head of Business Development for a high-tech startup, which he helped grow at double-digit rate and become profitable | Gennaro is an International MBA with emphasis on Corporate Finance | Subscribe to the FourWeekMBA Newsletter | Or Get in touch with Gennaro here

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