Choosing The Right Business Model
If you’re looking for a secure and reliable way to make money online today…
or you’re just wanting to use the internet to grow an existing business that you have offline, you’ll discover countless opportunities and shiny objects if you just do one simple google search. Yep, that’s right one simple search can literally bring thousands if not millions of results within a fraction of a second offering you more choices than you could possibly ask for.
So what do you do with thousands of choices and how do you know which ones will produce the results that you’re looking for without wasting thousands of dollars and hundreds of hours only to find out that your choice doesn’t produce enough to justify the time or expense you had to put forth.
That my friend is what you will learn here.
Choosing the right business model is a key component to a profitable online venture, but, if you’ve already spent thousands of dollars online, investing in products, traffic and business opportunities that don’t work, then my sincere condolences to you. I feel your pain.
But please don’t give up. There is still hope.
Chances are you probably already know more than the majority of the world population on this topic but you haven’t seen any results yet! That could mainly be because you don’t have all the pieces of the puzzle, or you have them but they are in the wrong order.
And that is why I started IM Wealth Affiliate.
Get Your Business Plan In Order, Then Take Action!
Of all the ways there are to make money online, none of them will be profitable unless you employ business strategies which enable your success. It is the business model that is the key component of a profitable online business strategy.
Without the right business model, you could be on the proverbial internet hamster wheel headed nowhere and draining thousands along the way.
Choosing a Business Model and Products to Apply
When selecting your online business model, there are 3 choices from which you can choose in order to get your online business started. They range from a complete do it yourself startup company where you create your own products and business infrastructure to a completely “done for you” business ready for customers. They are as follows:
1. Create and Sell Your Own Information Products
Let’s start with the DIY startup business where you create your all of your own products. In this model, you will be responsible for everything. You will be the captain of your own ship and will run every aspect of it from start to finish. This is by far the most profitable of all the business models, but it is also the one that is most difficult to generate profits because it will be difficult for you to market it properly.
Marketing With an Established Brand
The biggest hurdle to overcome with this model (besides creating all of the products) is that you will need an established brand to sell your product. You may think that your new info products are the best thing since sliced bread, but without a brand, it will be very difficult to get affiliates to promote them and you will be all alone in your marketing process.
So to get over that hurdle you’ll need to find yourself a partner. Find someone who is well known in the business and offer him part of the profits. Then you can literally borrow his name to help you give your product some market legs. This tactic is very effective and has been known to generate hundreds of thousands of dollars within months provided your products are good and you can get the right marketer to lend you his name and brand.
Very High Start – Up Costs
Another unexpected down side of creating your own information products is the extraordinary expenses you will encounter when you begin to create your sales funnel. A typical sales page with good copy could run you anywhere from $7,500.00 to $10,000.00. Then you have the expense of a video production team, affiliate manager, launch contest, prize money and other expenses which could go on well into the five or even six figure range.
Creating Upsells For Your Value Ladder and Continuity
Additionally, you can’t stop with just your main product. In order to get the most out of your investment, you will have to create additional products to complement your main product as an upsell and an ongoing continuity. If you don’t, your value ladder will be incomplete and your business is not likely to succeed.
2. The Affiliate Marketing Model
By far the easiest and quickest way to begin making money online is to use the affiliate marketing model to get your business off of the ground and get some momentum going. With this model you can leverage the fact that others have products and systems in place which you can utilize to start making sales immediately and get some cash flow going into your business. There are hundreds if not thousands of products available for you to sell in the marketplace and in order to get started, you’ll need to sign up with a network where product owners offer their product for sale. It’s as easy as signing up for an account, choosing a product, getting an affiliate number and voila you’re off to the races. However, the one issue with this model is that you don’t own the customer. After acquiring the lead, you send them directly to the product owner’s sales page and the product owner keeps the lead for future repeat business. This is a major flaw with this business model and one we will address in the next model.
This model takes time to pick momentum and will also require some technical and online marketing skills in terms sharing your affiliate links either on a blog, website, social media or other marketing channel.
Either way, I highly recommend that you start educating yourself on affiliate marketing so you can get that momentum going. The sooner you start, the faster results you will see.
3. The Licensing Model
If you are looking for a systematized and proven business model that you can tap into and still make high profits, then you need to educate yourself on the licensing business model.
The licensing model is not for everyone, as it requires an investment in your time and money and most of all someone with a business mindset. However it is the fastest and easiest way you can operate a highly successful online business.
A similar business model is that of Franchising or a Car Dealership.
The product and companies are already established, but all you have to do is purchase a license that allows you to operate under that business name. For example: McDonalds, Boston Pizza or a Mercedes Car dealership. You don’t have to create any products yourself or worry about branding and creating systems. Everything is already done for you.
There are many companies that offer this business model and the investment and setup fees vary drastically from one company to another.
If you are new and looking to build an online business, then I highly recommend you start with companies that offer digital products that can be sold online. Opening a restaurant or car dealership require a huge investment of money and also limit you to one physical location.
Your chances of success with this model will depend on a combination of the following:
- Business, technical and marketing skills
- How much money you can invest in the business, marketing and hiring help
- How much time are you willing to spend on the business each day
If you have all three then you have a winner and this business model is for you.
If you have time and money but no skills, you can hire someone to set this up for you while you learn the business side by side.
If you have time and skills but no money, you can easily find a business partner or investor in your business or offer your services on a commission basis to someone that is already established with this business model. If that is you, then I want to hear from you. Send me a note and I can show you how to tap into this business model without making an investment.
If you have no time, money or skills, then this business model is not for you, unless of course you have the business sense to gather a team, people with money, time and skills and you can be the brains behind it all.
On this site I will be reviewing many companies that offer the affiliate marketing and licensing business model and give you the tools and resources to see faster results and profits.
Stay tuned as I document more and more resources. In the meantime, you can check out the system I am using right now which focuses on selling high ticket items typically referred to as “Top Tier”.
Starting out can be a bit hard but as things pick momentum, it gets easier.
Send me your questions and I can help you assess which model is right for you.