How to Choose the Right Business Model

Business concept paper is on the desk with a cup of coffee and a calculator aside.

If you're not crystal clear about your business model, then it's likely going to cost you a lot of money.

In fact, not choosing the right business model can cost you as much as 400%.

Choosing the right business model is part of your overall business strategy (along with your marketing channels, USP, product type, niche selection, pricing, customer support, etc.) So it's important to spend some time picking the right business model early.

A lot of entrepreneurs make the mistake of choosing the wrong business model.  They may be too eager to launch their business and don't give it much thought which may end up costing them.

But don't fret.

I've made this mistake many times and I've already had to pay for it so you don't have to.

The good news is that I'm going to show you how you can avoid choosing the WRONG business model for your business.

I'm also going to show you find the perfect business model for your creative business endeavor.

What's a Business Model?

You may have heard of the term, and have some thoughts about what it means.

You may think it's strategy, marketing, or sales.

But a business model is simply, the vehicle through which you will deliver your product or services.

It answers the question: how do I plan to make money?

For example, if you're a blogger, then you need to know how you plan to monetize it.  Is it with ads, affiliate products, products, 1-on-1 consulting, or all of the above?

It's important to know the answer to this question before you get too far along.

It's also important to choose a business model which best suits your preferences, lifestyle, personality, skills and ability -- not necessarily because it has the potential of making the most money.  Of course, if it meets both criteria, then of course it would be ideal.

How to Choose the Right Business Model

The right business model can be the difference between success and failure for the same product and technology

First determine whether you want to deliver a product or a service.

  1. Membership Site

  2. Software

  3. Done-For-You Service

  4. Email Series

  5. Newsletters

  6. Group Coaching Calls

  7. Teleseminars

  8. Webinars

  9. Coaching/Consulting

  10. Service

  11. Affiliate Marketing

  12. Ads

  13. Subscription/Membership

  14. Software/App/Tools/Templates

  15. Speaking

  16. E-commerce

  17. Physical Products

  18. Books

  19. Mastermind Programs

Marketing Channels (How you will market your content via online channels)

Content

Channel

Article Marketing

Guest Blogging, Blogging (own site), Social Directories (tumblr, wordpress, blogger, etc.)

Podcast (Interviews, Q&A's, Tips/Advice)

Itunes

Advertising (PPC & Display)

Adwords, Bing Ads, Facebook Ads, Display Network (relevant sites)

Email

Aweber.com, Mailchimp.com, Constant Contact

PR/media/news

Prweb.com, PR Newswire, PR Leap

Social Media (News/Updates, Pictures, Contests/Giveaways, Insights, Success Stories, Tips/Advice, Quotes, Content Curation)

Twitter, Pinterest, Google+, Facebook, Linkedin

RSS

Feedburner

eBooks

Kindle, Kobo, iTunes, NOOK

Audiobooks

Audible.com, iTunes

eNewsletters

Email

Case Studies

Blog, Slideshare, Website

Videos

Youtube, Vimeo, Brighttalk, Brightcove, Google+ Hangouts

Teleseminars

Instantteleseminars

Webinars/Webcasts

Gotomeeting

Online Presentations

Slideshare

Mobile Apps

Iphone, Android

Infographics

Visual.ly, Dailyinfographic, Cool Infographics, Infographics Archive, Infographic Journal, Infographics Showcase, Visual Loop

Research/White Papers/Reports

Docstoc, Scribd, Visual.ly

Digital Magazines

Zinio, Issuu, edocr

Online Retail

Market Relevant Sites

SEO (directories + all channels combined)

Directories: BOTW, Yahoo, DMOZ, etc.

Reviews (Local)

Yelp, Google+, Canpages, Homestars, etc.

Films/Documentaries

Itunes, GaiamTV, Amazon, Netflix

Affiliates

CJ, Linkshare, Clickbank, Shareasale, Google Affiliate Network

Joint Venture

Interviews

Online Portfolios

Behance.net, Dribbble.com, Carbonmade.com, Dunked.com, Coroflot.com, Cargocollective.com

Images

Flickr, Smugmug, Instagram, Pinterest, Photobucket, Google Images, Picasa, Shutterfly

Forums

Niche Relevant Forums

Classified Ads

Craigslist, Kijiji

Social Bookmarking

Stumbleupon, Reddit, Delicious

Discussions/Comments

Niche Relevant Blogs

Products Ideas, Business Models, and Marketing Channels For Your Content

  • Content & Product Ideas
  • Articles
  • Ebooks, Instructor Guides & Reports
  • Email Autoresponder Series
  • Books
  • Newsletters
  • Audio Products
  • Audiobooks
  • Podcasts
  • Audio Programs
  • Teleseminars
  • Presentations (webinars, screencasts, etc.)
  • Home Study Course (video)
  • Live Video Training (Google+ Hangouts)
  • Apps
  • 1-on-1/Group Coaching (via skype, email, phone or teleconference)
  • CD of the Month
  • DVD of the Month
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