Unlocking the Secrets of a Profitable Business Model
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Chapter 1: Understanding Winning Business Models
Are you equipped with a successful business model? An effective business model must possess a REPEATABLE and validated method for generating sales and profits.
The algorithm can be quite frustrating; just this week, I encountered ten advertisements promoting courses on how to write an eBook after I searched for book writing online. One particular individual caught my attention; she claimed to earn $26,000 monthly from eBook sales, all crafted by ghostwriters. However, her secret is only revealed if you invest in her $2,500 eBook-making course.
While I don’t typically invest in courses, I’m passionate about gathering various business models. A thriving business model should largely remain insulated from external influences. For instance, a gym that offers annual memberships will continue to generate consistent revenue each month, even if members cease attending after a couple of months.
The woman promoting the eBook course employs a business model termed "ads — free — upsell — profit." She runs an advertisement for a complimentary webinar, accessible upon providing an email address, followed by an upsell of her complete course during the webinar. If you decide to purchase her course, she profits. If you hesitate, she’ll continue to entice you with newsletters that likely include some free content to entice you further, alongside upsell offers.
Conversely, she will probably pitch additional services to those who have purchased her courses, such as personal coaching, consulting, or editing. The catch is: you will not become successful at writing eBooks or earning money from them by taking her course, because if she were truly thriving from eBook sales, she wouldn’t need to create a $2,500 online course. In this scenario, the online course itself is the lucrative business model, not the act of writing eBooks.
Another instance of a solid online business model is the concept of paid subscriptions. Creators often share free content on platforms like YouTube or TikTok to attract an audience with similar interests. They then provide more enticing content through exclusive member-only videos or paid newsletters. Personally, I find this model superior to generating income through solo ads on YouTube; ad revenue is heavily influenced by external variables, such as the platform’s performance, economic conditions, the volume of ads being served, the number of creators present, total users, and the algorithm's functionality. The objective is to have paying clients discover and support YOU, rather than the platform itself.
In a world filled with distractions, if your goal is to thrive as a creator or entrepreneur, it’s crucial to clarify your intentions before becoming overwhelmed by options. Consider these questions:
- What is my ultimate goal here?
- Why am I writing on Medium, and what do I hope to achieve?
- What is my purpose for using TikTok, and how will increased views contribute to my success?
- What is the reason for having a website, and how will it help attract traffic?
- How will the various endeavors I undertake complement each other?
- Why should I collaborate with an influencer?
- How will that Instagram post draw in my ideal customers?
- Who exactly are my customers? Where can I find them, and what strategies should I use to reach them?
By addressing these questions, you’ll uncover the “key” to establishing an effective business model tailored to your needs, ensuring it’s a repeatable process that attracts your target customers and generates revenue.
Chapter 2: Proven Business Models in Action
This first video, "Exploring the World's 55 Most Successful Business Model Patterns" by Tristan, dives into various proven business models that can enhance your understanding of successful strategies.
The second video, "Business Models for a Scientific Approach to Sales," offers insights on how to effectively implement business models that maximize sales success.