December 04, 2001 02:37pm
Convergence Inc. Internet's largest Company With No Employees
Source: Convergence Inc.
by: Company Press Release
Convergence Inc. has become the Internet's largest company with No employees. As such, the innovative firm is an international e-commerce trendsetter and example for 21st century online business models.
After growing over 70% for the third year in a row, Convergence Inc.'s revenues hit $5 million in 2001. In stark contrast to most dot-com and e-biz companies, Convergence remains solidly profitable - and still has no employees.
Convergence Inc. actually has many people working with the organization, but they aren't "employees" per se in the conventional sense. The affiliates promoting adult novelties at Convergence sites such as SexToySex.com work independently, earning commissions on all sales. Outsourced customer service/order fulfillment reps work from home or phone centers. Several strategically placed regional warehouses - such as one in Australia serving the lucrative Southeast Asia market - are outsourced for shipping orders.
Traditional bricks and mortar companies monitor workers by Physically watching them onsite. On the other hand, Convergence Inc. believes it's more efficient to monitor work through computer software. "Whether it's the warehouse shipping orders or customer service reps accessing information from home, everyone uses Convergence's custom built software, which is designed to guide and monitor the work being done," explains Aestiva developer Curtis Palmer.
"Our competitors who require employees to work in a corporate office have to hire from a local area for workers, who often don't love their job," explains Jennifer Merrit, owner of Enterprises of Merritt, an outsourcing company which manages some of Convergence's order fulfillment services. "We can recruit contractors from anywhere in the world. Since these contractors can work from home independently while setting their own schedule, they tend to be motivated and to enjoy their work," Merrit states. In terms of resolving customer problems and questions, this unique structure helps Convergence remain one of the most efficient e-businesses in the sex toy industry - and online, in general.
Minus corporate offices, employees, and low-to-no overhead, Convergence has become one of the largest, most profitable, and innovative distributors of sex toys on the Internet. Indeed, it is a role model for the entire emerging e-commerce industry. "Just as Compaq computers can not compete with Dell's superior business model, our model is proving unbeatable," insists Convergence Inc. President David Levine. "All we do is own the software, own the customer lists, and handle all the money. Warehouses, inventory, and employees are distractions and expenses that hold back our competitors," Levine asserts.
Convergence Inc. began as an e-tailer at SEXTOY.com in 1995. Convergence built the Web's first affiliate program for selling sex toys online in 1996, now called SexToySex.com. Recently, Convergence became the largest distributor of sex toys at wholesale prices at SextoyClub.com.