Lets take a quick trip back to the year 2000 and take a look at an internet fashion retail company called Boo.com. Things were just starting to look good after months of problems and delays. Sales were rolling in peaking at around $500,000. And then almost overnight the company was closed down and sold off bit by bit. What caused this company with over $135 million dollars in venture capital to fail?
Their business model. It was inherently flawed and absolutely backwards. They were relying on investors to fund them until the company’s sales caught up to its expenses. Not to mention their site, Boo.com, totally sucked! It was designed to be a fancy shopping assistant but it took over 5 minutes to load!!! In addition, that had a vast network of distribution points and clothing suppliers.
In essence, it was just too much for the management to handle. Don’t want meet your demise like Boo.com did? That’s why I’m writing this article; so that you can skip the crash and burn stages of your business. Here are some business models that are working brilliantly right now. I also happen to like these kinds of business models because they are easily accessible and bring in the green.
Blogging is not really an end all business model in itself, but rather it’s a golden ticket to good business and is a staple in todays best practices no matter what niche you’re in. Most if not all of the fastest growing companies are leveraging their blogs in a way that delivers value, imparts trust, and gains loyal customers.
Affiliate marketing has got to be the simplest and single most effective business model ever invented. Paired with blogging, it’s like pairing a hot dog with a bun. I would say that almost every large business with an online presence is running an affiliate program.
Cost Per Action
What’s even easier that affiliate marketing? CPA marketing! Getting someone to take an action that doesn’t involve making a purchase is like slicing butter with a warm knife. Billions are spent every year on CPA offers, why not get your piece of the pie.
I’m a firm believer in specialization. read about it HEAR. If you outsource everything you’re not good at your productivity (and profits) goes through the roof! One person alone doesn’t run google…no business is an island!
What’s better than getting people to buy stuff from you? Not getting them to by from you….Letting them want to buy from you no matter what you say! Building a powerful brand is the only way to build a long term sustainable business that you can rely on for years to come. I know you bought something because of the brand at least once in your life. Think McDonnell’s vs. Wendy’s.
If your business model doesn’t include the components listed above you might not fail…but you certainly are making life hard on yourself. These are the business models that I like and when they are all mashed up you’ll build one helluv’a business.