The Factor is expected to be experienced enough to protect the interests of the endeavor.
The Factor is expected to be able to manage the affairs of the endeavor, profitably.
The Factor is not an employee but a trusted agent (By law).
The Factor shares in the net profit brought into the endeavor and will be expected to train other team member to do the same.
As a factor, the agreement is an arms length agreement between a business and another business or individual, where each are responsible for their own actions.
The autonomy keeps everyone safe but the actions of a factor does reflect on the image of the originating business.
Our teams who have business endeavors should enter into factor agreements with other teams and other team members. This is how we multiply.
One effective way to utilize a factor agreement is when income passes through the originating business as an income stream. In accounting it is called profit center. Charles Tandy of Tandy Corporation (Radio Shack) used this method to build his mega dynasty. Each Factor receives a monthly report from the company that calculates the profits made from the factors business that is within the originating company business. The originating company business receives a percentage of the profit for housing the factors business. This is our secret to success worldwide for individuals who live in countries where going into business is prohibited.