2 Successful Internet Business Models

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Are all your eggs in one basket, or in many baskets?

In the previous article we covered 21 different online business models. Here we’re going to cover two potentially successful internet business models you can be in. These two are:

1) Limited products or services, sometimes only one.

2) Going deep and wide with products and services.

We’re going to go into lots of detail on the benefits and drawbacks of each of these methods of marketing and business building.

Limited Products or Services Business Model

This method has you focus on selling one thing. It still counts if you have one main front end offers and a couple on the back end. But the keyword is focus.

The Benefits

When you have one product you’re trying to sell you can devote 100% of your efforts, meaning your time, energy and money on marketing the product more. This often means you’ll tap into multiple sales channels, and be able to tweak ads and methods as needed to maximize your returns.

Along with that you’re going to be able to test much better. Not only is it easier to setup testing when you have a single funnel, but you can figure out your conversions at every step of the way.

The Drawbacks

If you only have one or a few offerings, your best customers will have it all, and you’ll have nothing left to sell them. Basically you leave money on the table doing this. It is easier to sell to a customer then to convert a new prospect into a customer.

You best make sure your product is really good if you’re going this route. If you spend lots of effort marketing a product that isn’t great it just won’t take off. You can always update it too so this shouldn’t be a big issue that stops you.

In order for this method to work you need a product that sells to a big population. It needs to have some mass appeal, or else you can literally run out of customers.

How to Make It Even Better

It’s great to spend all your efforts on bringing people into your funnel to sell one product. But then offer more after that. Upsells or otherwise having some backend can easily double your profits or even more. You don’t need a whole lot but just a few select things will do it.

Also while you do this you’re going to build a big customer and prospect list. Even if you choose not to create a bunch of products you can do affiliates sales. It’s almost like having a backend, without doing almost any work.

Questions to Ask Yourself

“How can I make this offer convert even better?
“Where else can I find people that this offer would be perfect for?”

An Example

One of the best examples of this is Mike Geary with his Truth About Abs. These days he has a backend but early on I believe he was doing 7 figures off this one book alone without selling anything else.

His ebook has mass appeal (who doesn’t want 6 pack abs?). He truly optimized the funnel and focused everything on making more sales.

Going Deep and Wide Internet Business Model

This really is the opposite approach, where you make as many offerings as possible, the idea being to cover every aspect of everything that your market could want.

The Benefits

As already mentioned, it’s easier to sell to someone who is already a customer (assuming they like your stuff). This model capitalizes on this. If someone buys one thing on a topic, they’re likely to buy much more, so why not be the one to sell it to them.

As you build up your customers and prospects every time you offer something new it will mean more money coming in pretty much guaranteed. Even if one product doesn’t perform well, you can have hundreds more.

With this you can target tiny niches and still make money. While you may not be able to retire off any one product alone, they all begin to add up. The more you release the more you make.

The Drawbacks

If you’re creating lots of products that takes time. Even if you’re fast at it, this is where your time and energy is being spent. It’s going to be time you don’t spend on marketing.

You can get caught in the trap of continually releasing new stuff because that’s how money comes in, and not working on new advertising, marketing, and making sure you’re offers are converting.

Speaking of that, while it’s still possible, it’s hard to test and track everything if you go this route. In some cases you may not even have enough data points to make it work.

How to Make It Even Better

Although you may want to go deep and wide it’s important to spend time with a funnel in the beginning to get people in. Test and tweak this so you have a steady stream of new prospects and customers. Use your best and most widely appealing offers to get started. With advertising as an example you know that if you can break even on the front end, you’ll make a killing on the backend.

Once you have this then you can go deep into the niche making as many offers as possible.

Don’t just do one off launches and move on. Set them up so that you can continually make solid sales from these things.

Questions to Ask Yourself

“What else could I offer that’s related that they’d want?”
“How can I sell more to the same people?”

An Example

Me. It would be difficult to count all the products I have these days. Some may only make a few sales a month but it all adds up. I started with one hand balancing book, then I added several more. From there I went into related areas like tumbling, parkour, strength training with bodyweight exercises and more. After having success there I’ve started offering products and coaching in the online business space, that I knew some of the same customers would want.

Specifically now I’m working more on the “how to make it even better” part for myself in this model. If you’re just starting out, since you’re not going to immediately have a diverse product line, you should start with the first model. Once that is running the choice is yours.

Two ways you can look at these different business models which apply to more than just the internet (think Apple store vs. Walmart) is just a focus on the front end versus a focus on the backend. You can also think of them as focused or varied.

Which of these successful internet business models are you following (or planning to follow) with your business? What small changes might you make based on this article that would help you become even more effective and make more money?

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One Response to 2 Successful Internet Business Models

  1. George November 26, 2012 at 10:19 am #

    I found it really interesting article. Thank you !

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