Choosing a Business Model: The 30-Day Blog Challenge, Day 11Posted by Jessica Oman
Anyway – today’s post is all about online business models. If you’re selling ANYTHING online then you need a business model that supports it. Otherwise, your internet marketing efforts could be wasted.
Guess where you can describe your business model? (Not all at once!!!)
That’s right, it’s in your business plan. Your plan is where you can write down the structure of your business – the way you’ll set up your marketing and sales process to deliver the fantastic products and services you want to sell. In short, your business model explains how you profit. And this is something we all need to know about our own companies!
Choosing an Online Business Model
With any online business, you’re either selling your own stuff (active) or other people’s stuff (residual, or passive). Sometimes it’s a combination, but to do online business really well, your focus will lean more towards one or the other.
Yesterday I wrote about how Write Ahead wants to sell more information products online. While many people see downloadable products as a passive revenue stream, this isn’t the case for us. Our online business model is very active – because we don’t just sell products, we sell consulting, writing, and editing too. For example our business plan review service is an active revenue stream that can be sold totally online.
Do You Have Time for an Online Business?
If you choose an active online revenue stream, you have to remember that part of what you’re selling is your own time. For that reason, it’s really important not to underprice yourself – if you do, you’ll be scrambling to book more coaching sessions to increase your revenue, and then burning out, running out of time for marketing and never having a day off.
And that’s not why you’re planning an online business, is it?
Have you worked out your own online business model, or are you still having challenges? Let us know how we can help.
Image credit: ivanpw