Is Your Business Model Damaging Your Income?
Your business model is the single most important thing you possess online.
It fundamentally shapes what potential you have to earn. Critically, various models result in very different returns. A fantastic marketer with a poor business model will almost certainly fail. A mere mediocre marketer with a great business model is much more likely to succeed.
Recently I responded in a WF thread urging someone to consider the whole gamut of different business models within IM (typically people never even think about this and simply 'fall' into a model that appeared to work for someone else).
As a result i've since been asked, specifically, about different ecommerce business models for people thinking of entering this field. Here's my response:
Within ecommerce there are a lot of choices to make in creating your business model. Choose carefully and after some consideration. A few of the main elements include:
Your Offer:
What do you want to sell?
1. Physical - the most popular choice, the key challenges include storage and shipping
2. Digital - many within IM sell digital, often the key challenge include perceived value and piracy
Your Product:
How will you acquire your product?
4. Make - often the route of the hobbyists, the challenges are around scalability and time spent.
5. Manufacture - find a company to produce your own product, challenges include sourcing.
6. Wholesale - buy from a middleman, challenges include subsequent profit levels and availability
7. Dropship - buy others' products to sell, challenges include thin profit margins and competition.
Your Sourcing:
Where will you acquire your product?
8. Domestic - buy from the country you will sell in, challenges can include available range and margin.
9. Abroad - buy from another country, challenges include culture difference and shipping.
Your Proposition:
How are you going to compete?
10. Price - lower price, challenge includes small profit margins and price wars.
11. Quality - higher quality, challenges can include costs and quality control.
12. Range - wide selection of products, challenges include inventory management and storage.
13. Branded - unique added value, challenge includes positioning and set-up.
14. Service - competing on customer service, challenge includes infrastructure and costs.
Your Marketing:
How will you attract customers?
15. Ads - the placement of direct advertising and ppc, challenge is costs and skills.
16. Social Media - using social interaction sites, challenge is scale and time commitment.
17. Hybrid - a combination of above, ads for short term and social for longer term brand building.
There are many other elements to consider, for example should I sell on amazon and/or should i have my own online store and/or should i develop other routes to market?
Different selections from the different options will often build very different ecommerce models with very different financial outcomes. I've experienced this personally (thankfully now have a large and fully thriving business).
I hope this helps some people think strategically and logically, the different possibilities and positively impacts their income.
Good luck with your ventures.
It fundamentally shapes what potential you have to earn. Critically, various models result in very different returns. A fantastic marketer with a poor business model will almost certainly fail. A mere mediocre marketer with a great business model is much more likely to succeed.
Recently I responded in a WF thread urging someone to consider the whole gamut of different business models within IM (typically people never even think about this and simply 'fall' into a model that appeared to work for someone else).
As a result i've since been asked, specifically, about different ecommerce business models for people thinking of entering this field. Here's my response:
Within ecommerce there are a lot of choices to make in creating your business model. Choose carefully and after some consideration. A few of the main elements include:
Your Offer:
What do you want to sell?
1. Physical - the most popular choice, the key challenges include storage and shipping
2. Digital - many within IM sell digital, often the key challenge include perceived value and piracy
Your Product:
How will you acquire your product?
4. Make - often the route of the hobbyists, the challenges are around scalability and time spent.
5. Manufacture - find a company to produce your own product, challenges include sourcing.
6. Wholesale - buy from a middleman, challenges include subsequent profit levels and availability
7. Dropship - buy others' products to sell, challenges include thin profit margins and competition.
Your Sourcing:
Where will you acquire your product?
8. Domestic - buy from the country you will sell in, challenges can include available range and margin.
9. Abroad - buy from another country, challenges include culture difference and shipping.
Your Proposition:
How are you going to compete?
10. Price - lower price, challenge includes small profit margins and price wars.
11. Quality - higher quality, challenges can include costs and quality control.
12. Range - wide selection of products, challenges include inventory management and storage.
13. Branded - unique added value, challenge includes positioning and set-up.
14. Service - competing on customer service, challenge includes infrastructure and costs.
Your Marketing:
How will you attract customers?
15. Ads - the placement of direct advertising and ppc, challenge is costs and skills.
16. Social Media - using social interaction sites, challenge is scale and time commitment.
17. Hybrid - a combination of above, ads for short term and social for longer term brand building.
There are many other elements to consider, for example should I sell on amazon and/or should i have my own online store and/or should i develop other routes to market?
Different selections from the different options will often build very different ecommerce models with very different financial outcomes. I've experienced this personally (thankfully now have a large and fully thriving business).
I hope this helps some people think strategically and logically, the different possibilities and positively impacts their income.
Good luck with your ventures.
$ POPS GUIDE - YOUR FIRST CONVERSION GUARANTEED! $
Would You Like To Partner With Me On Product Launches? Then PM Me
https://www.facebook.com/groups/ASMEntrepreneurs/