Home Based Business Modeling
The number of people fantasizing about leaving their jobs has been growing. In the present global recession scenario, this may be the only option for the unemployed. Lack of individual growth opportunities, rising uncertainties, stagnation and depleting work challenges have forced many to take to the internet as the only money making goldmine! It's a great relief to see more people turning polite from the earlier times of spam and lewd messages laden chatrooms.
But, the question is: How many people (will) succeed in operate-from-home business? Basically, one's business should be based upon a time-tested model if one is interested in a short-term approach or gain. Or one can even visualize a new business model for long-term gains. Now, the latter approach needs a huge capital, long period and high-risk taking but if successful, a mountain of money. If one explores into the background of successful enterprises, it would be apparent that they all had strong business models as their foundation.
According to Michael Rappa, "In the most basic sense, a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue." He goes on to say, "The business model spells-out how a company makes money by specifying where it is positioned in the value chain." The word "value" is the keyword! A product or a service can fetch one a positive net income if there is value addition to it. Note that a value is very different from a price or cost. Some of categories of business models discussed by Rappa include: Brokerage, Advertising, Infomediary, Merchant, Manufacturer (Direct), Affiliate, Community, Subscription and Utility. First, determine your area of business.
"Know your interests," cautions Elizabeth Miranda. She hits the nail when she says, "Before setting up a home based business, know what you can do and what you are good at ..." Things do not happen overnight!
A few examples will make the topic clear. The traditional business model adopted by shopkeepers even to this day is the store and sell model. Later, shopping chain model was pioneered by companies like Walmart. Multi-level marketing (MLM) followed in due course. These business models had a set of established policies, processes and procedures for duplication. A detailed manual for processes and ready-made formats for procedures ensured their certain, if not, rapid success.
Coming to internet marketing, we have buy-sell-auction model of eBay. Amazon has its own style of buy-sell model. On the net, one will find "Freemium" and "Premium" models. In freemium, one has limited access to the features of the program tempting one to ultimately to reach out to the advanced features by paying the subscription fee. An auto-responder is a type of business model with its own drawbacks. Ever wonder why Yahoo (or others) started with free email? Once it's subscribed by many, it is a great avenue for advertising. Who pays for search engines? Google used this technology to capture a multitude of net-surfers with the long-term goal of earning from AdSense and AdWords. Examples are plenty! Not to forget, Twitter.
Comments (13)
Kenny Lee
4
Attention electronics
great article! i like it
Jose Santana
6
trader
very interesting but very simple
Nancy Radlinger
9
Online Business Consultant
Excellent article - and you are so right - most people come online and don't have a business plan at all - they don't take it serious and treat it like a business and the one thing that I find is the lack of communication with other - everyone wants to be shy and hide behind a screen name - they don't have a real picture of themselves and if you try to chat with them - heaven forbid - they don't seem to want to be bothered and then they wonder WHY they are not making it.
I have run into so
Belinha Fernandes
5
Plastic artist
Mohann, excellent article. What I've been learning so far: mindset is important factor, one must know what we want to achieve, mindset and a careful planning of that future business. And for this we must do previous deep reasearch. Then we should use a marketing strategy that works. Investement will be also needed. Online business is like any other business. And for investment I mean investment in time, in constant learning and real money for tools of the trade. I am just at the beggining. But
Mohann Krish
6
@Lenore: Demise in the industry? Certainly, NOT! What you say at the end are great words: "I say it's my having morals and have the ability to wake up in the morning feeling good about myself." As far as I am concerned, I go to bed without a regret and sleep well - that's a great blessing and wealth in these times.
Sergio Felix
7
IT Pro
Mohan, very good definition of what business models have gone through with time.
For unemployed people or people willing to change their mindset and start working for themselves in their own business model, I'd definitely have to agree with the following:
"know what you do and what you are good at..." ~Elizabeth Miranda:
The main problem with this approach is that even though almost nobody confuses what they like to do or can do best, people don't prepare ahead to understand that in fac
Lenore A. Moker
6
After doing my research on a company, I will then try the product out before I actually join. If it doesn't meet my expectations, I move on. I have to have trust in the company before I can promote it.
I was involved in an MLM not too long ago. I bought into one company then another one acquired us. Since that point, everything went downhill and it became very difficult for me to promote it because I lost faith in the company; hence, I dropped out. I just can't do that to people. Some say th
Fred Mugone
14
Health, Wellness, e-Business
Great article Mohann. You are very right: know what you can do and what you are good at ..." Things do not happen overnight! They never do. Only scams deceive people that things will happen overnight. You have also used some very good examples to get your points across in a way that is very easy to understand.
Cindy Bolley
16
HHCTB?
Nice post Mohann
@Lenore Your so right... but so few have what it really takes to "make it"
Most get bored or lose interest to quickly or....
Don't make that $10,000 Bucks by Friday.
Cindy
Philippe Moisan
16
Tutorial videos, sci-fi writer
The secret is to do what most people won't do, and do it consistently, awesome article, Mohann, as always, you're definitely a leader in that department :)
Lenore A. Moker
6
Great article! Although home based business may not be for everyone, those who "get it" and put forth effort can "make it". :)
Grigore Turcanu
2
Yes , I'm in MLM for more than 7 years and believe me, it's the way to go!!!!!!
Nathan Gassman
2
Very interesting! Home Based Business Modeling is certainly another nich to try!
Good Info...Thanks