Why SANERGY's Business Model is so successful?

Sanergy builds and franchises low-cost, high-quality sanitation facilities called “Fresh Life Toilet” (FLT) to make hygienic sanitation affordable and accessible throughout Africa's informal settlements. They collect the waste on a daily basis and convert the waste at a centralized facility into useful by-products.

Social impact: Self-transcendence

Life changing: motivation, self-actualization, affiliation/belonging

Emotional: wellness, provides access, rewards me

Functional: makes money, reduces risks, connects, quality, avoids hassles, reduces effort

Franchising:

A franchise is a license that a business (franchisee) obtains to get access to a business's secret knowledge, procedures, and trademarks to promote a product or provide services under the company's business name. The franchisee typically pays the franchisee an initial startup cost and yearly licensing fees in return for obtaining the franchise.

Low cost:

A pricing strategy in which a business provides a low price in order to drive demand and increase market share. Additionally referred to as a low-price approach. The low-cost model has sparked a revolution in the airline industry. The end-user benefits from low-cost tickets as a result of a revenue strategy that seeks various sources of income. Ryanair was one of the first businesses to embrace this approach.

Trash to cash:

Trash to cash may be an extremely profitable business strategy. It entails collecting old goods and repurposing them or reselling them to other areas of the globe. It may be very lucrative for two reasons. The first reason is that most of these goods can be obtained for little or no money, dramatically boosting the profit margin. Furthermore, companies pay to have their garbage collected, which may be a lucrative revenue stream. It may be a double whammy for a business that is compensated to remove debris.

Microfranchising:

Microfranchising is a business model that applies elements and concepts of traditional franchising to small businesses in the developing world. It refers to the systemization and replication of micro-enterprises. Microfranchising is broadly defined as small businesses that can easily be replicated by following proven marketing and operational concepts.

No frills:

A no frills service or product has been stripped of non-essential elements to keep the price low. Initially, the word frills referred to a kind of cloth embellishment. Something provided free of charge to clients may be a frill - for example, complimentary beverages on airline flights or a radio fitted in a rental vehicle. No-frills companies rely on the premise that by eliminating opulent extras, consumers may benefit from reduced costs. Budget airlines, supermarkets, holidays, and pre-owned cars are examples of everyday goods and services with no-frills branding.

Donation-based:

Crowdfunding for charity purposes is a collaborative effort by people to aid charitable projects. Civic crowdfunding is a kind of charity crowdfunding in which money is collected to improve public life and space.

Microfinance:

Microfinance provides financial services to entrepreneurs and small companies who may not access traditional banking and financial services. The two primary delivery methods for financial services to such customers are (1) relationship-based banking for individuals and small companies and (2) group-based models, in which many entrepreneurs pool their resources to apply for loans and other services together.

Sustainability-focused:

Companies that manufacture fast-moving consumer goods and services and are committed to sustainability do ecological impact assessments on their products and services. While research-based green marketing needs facts, green storytelling requires imagination and location. Employees responsible for the brand definition and green marketers collaborate with product and service designers, environmental groups, and government agencies.

Target the poor:

The product or service provided here is aimed towards the bottom of the pyramid rather than the top. The target of the flawed business model is a financially feasible strategy that helps low-income communities by integrating them in the value chain of a firm on the demand side as customers and consumers and the supply side as producers, entrepreneurs, or workers in a sustainable manner. While the business earns a little profit on each product sold, it profits from the increased sales volume often associated with a large client base.

Pay as you go:

Pay as you go (PAYG) business models charge based on actual consumption or use of a product or service. Specific mobile phone contracts work on this principle, in which the user may purchase a phone card that provides credit. However, each call is billed separately, and the credit balance is depleted as the minutes are used (in contrast to subscription models where you pay a monthly fee for calls). Pay as you go is another term for pay & go, pay per use, pay per use, or pay-as-you-go.

Take the wheel:

Historically, the fundamental principles for generating and extracting economic value were rigorous. Businesses attempted to implement the same business concepts more effectively than their rivals. New sources of sustained competitive advantage are often only accessible via business model reinvention driven by disruptive innovation rather than incremental change or continuous improvement.