It’s so tempting to look at a successful online business and quickly determine that the business model is what you need to put in place…without ever considering why that business is successful in the first place.
For example, you see a Power Seller on eBay that is going crazy selling video gear to the growing market for amateur video partly driven by the movement toward online video and partly driven by lower cost of equipment. From seeing that business, you decide I want to build an eBay business and go charging off to setup your seller account and see if you can make a Million dollars.
Another example, you see an affiliate marketer who has a travel information site setup raking in hundreds of thousands each month by marketing affiliate programs on travel packages, hotel bookings, and so on… Now, all of a sudden, you’ve got a tough decision to make…eBay or Affiliate marketing.
I see this happen all the time with new people that come to InfoMarketerszone looking to help design or fix their ebook or information product publishing business. They fell in love with the idea of having their own product (a good thing), but failed to understand that the main difference between top selling information products and poor selling ones is the business idea or topic they have chosen. When we put them through the first 3 parts of the Information Product Profits Formula, they quickly discover truly great topics that will both sell AND give them a unique advantage in the marketplace.
In fact…using this method of finding your idea business you are forced to deal with many business models…
- Affiliate marketing
- Advertising
- Software development
- eBay
- Creating your own information products
- Membership sites and continuity programs
- Etc…
Now your confused – which one will bring you in the quick money and can be built into a million dollar business?
Wait a minute…what’s missing…oh yes – the business IDEA!
There is no BEST model in general, there is only a BEST model for addressing a specific need or idea in the marketplace. It’s clear, you cannot decide on a business model before you understand what business idea or value you will bring to the marketplace.
BUSINESS MODELS ARE NOT BUSINESSES
The key to finding and building successful businesses are…
1. Deciding on strong business idea- this means finding a strong desire within a target market that you can address with a product or service in a unique and valuable way
2. Which business model best fits your business idea – how you will profitably deliver those products to them – eBay, your own products, information site that monetizes using affiliate products, membership site, etc…
3. All based on a sound business plan – I’m not talking about a 40-page business plan, just a few pages that includes objectives, project by project plan (sure it may change, but start with a plan), definition of your role within the business and roles you may want to outsource once it begins growing, etc…
Let me warn you – most people charge ahead into a business model based on success they have seen someone else achieve or heard someone talk about without understanding WHY that business was successful in the first place – the BUSINESS IDEA.
The successful power seller on eBay that marketed video accessories understood the increased demand curve among amateur video producers and built a complete offline and online business around this topic – eBay is just one way they reach the market. The real difference is the sound business idea and plan.
The successful ebook or infoproduct publisher understands the hunger within a given market for answers to burning questions and develops their infoproduct business around that hot demand – they also understand gaps in how that information is delivered allowing them to enter with ebooks, membership sites, coaching programs, seminars, multi-media products, or other formats. Again, the business idea drives the decision of business model.
If you are ready to tackle your own online business, then start by finding a legitimate business demand and idea to fulfill that demand – evaluating business models to bring your product or service to market then becomes much simpler.
Jeff
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