Are you unclear on exactly how you are going to make money in your business? Perhaps you’ve gotten clear on your business idea, your ideal clients, and your business message but your not sure how you are going to reach your monthly income targets. This is a perfectly normal question to ask after you have just gotten clarity on the type of business you are going to create. Adopting a business model is an easier way of figuring out how you are going to make money in business. Business models are generally tried and tested models which focus on products or services provided in business. Before you dive in and choose a business model, it’s important to understand the various types of business models that are best suited to the service-based entrepreneur. In this blog post, we will discuss the top 5 business models and the things you need to consider before choosing a business model that is right for you and will help you achieve the dreams and desires you have for your business.
One to one services is the business model that most service-based entrepreneurs choose when they first start a business. Many serviced based don’t really give this business model too much thought, because this is really what is expected; however, the biggest advantage of one to one services is there is a relatively low set-up cost, and it helps you refine the process you use to get your clients results before you go on to incorporate other services like group programmes or online courses. The biggest mistake that many first time entrepreneurs make with this model is they never move out of the trading time for money trap, where clients purchase hourly sessions or groups of sessions, instead of selling a programme with a variety of benefits, and with a premium price. One of the biggest disadvantages when it comes to one to one services is you are bound by time, while it’s possible to travel and have a one to one service business, you need to be super organised and have a backup plan when things go wrong.
An online course is a structured programme where the client learns at their own pace with little to no contact with you, the service provider. This type of programme is great for those of you who want to make money from anywhere in the world and not have to be present and provide a service. Like most business models, online courses require a strong sales funnel that attracts your ideal clients to your course. If you’re a beginner and don’t have a lot of marketing experience or a large list this may not be the best business model, in saying that know you will need to spend time understanding marketing strategies and setting up an effective marketing funnel before you start to make a profit. One of the disadvantages of this business model is you may need a large number of enrolments for your course in order to hit your monthly income targets.
Group Programmes or a Mastermind
A group programme or a mastermind group is different from an online course because typically the content is issued out as modules and at the end of every week all the participants come together for a group coaching call, where the instructor either goes through the content and provides time for the participants to ask questions. The biggest advantage of this model is you can coach a number of clients at once. A disadvantage of group programmes is many participants don’t feel comfortable sharing and talking in groups, so you will need to find a way to help the participants establish a bond and feel comfortable and safe in the group coaching environment. If this is something you are considering implementing in your business, I would recommend starting with a one to one service and perfect your process, learn about human dynamics and how to manage people in a group environment before taking this business model on in your business.
The info-product course model consists of providing small products like ebooks, workbooks, and other PDF style tools. The biggest advantage of the info-product business model is if you create evergreen products you can sell them over and over again. Like the online course business model, you will require a strong sales funnel, large email list, as well as an understanding of market but this business model, allows you to be location independent. The biggest drawback with info-products is it can take up to 9 months to outline, write, edit, and publish a 300-page book, and there is a high cost involved, especially when it comes to getting your book edited, and on top of that, you will need to sell a large number of products to make a profit and hit your income targets. I know this sounds like a huge drawback but this is the harsh reality of the info-product business model and I want you to understand the realities, and I don’t want to paint a picture like it’s all tiptoeing through daisies and smelling roses. It can be difficult getting eyeballs on your info-products or ebooks, however, publishing an ebook will position you as an expert in your field because very few people who say, I want to write a book will actually go on to take action and make it a reality. If you’re considering this business model there are quite a few people who make a sizeable income from this model. There are quite a few independent Authors like Joanna Penn and Derek Murphy who self-publish both fiction and non-fiction and entrepreneurs like Regina from byregina.com who make an income from selling PDFs, workbooks, and courses for a living.
Affiliate marketing is where you promote other people’s products and earn a commission from each successful sale you make. My experience with affiliate marketing is quite limited but I have experimented with the Amazon affiliate programme. I have found it quite difficult to earn an income from affiliate marking, however, I would like to point out that I haven’t really made a huge effort to test this business model out. Despite my lack of efforts, I have noticed that you require a fairly sizeable audience and traffic to your website. A few professional bloggers like Derek Rowse from Problogger have confirmed this and published income reports highlighting the amount of income they have earned from affiliate marketing programmes. For more information on this, I recommend you check out Derek Rowse’s blog post on affiliate marketing.
The top 5 business models are One to One Services, Online Courses, Group Programmes, Info-products, and Affiliate Marketing, while this isn’t an exhaustive list most business models can be categorised in either one of these models. In the next blog post, we will discuss why you shouldn’t put all your eggs in one basket when it comes to business models and how you can use more than one model to create and grow the business of your dreams.
Over the next seven days, I want you to consider the vision you have for your business, and create a short list of business models you could apply to your business that could help you achieve what you really desire in business.
As always, I have to ask; What business models appeal to you the most? or What business model/s have you applied in your business? I want to hear your story. Let me know by leaving a comment below.
You owe it to yourself to stop dreaming and start creating a profitable online business.
Remember, how you spend your time in this world matters. So don’t waste your time in a job that you do not love, start working on your dream today.