How to build profitable business models on internet
The truth is that I would say I have the magic potion to create profitable business models on the internet. Although not so, if there are certain parameters that we can use and we may indicate how interesting it can be that model in terms of profitability is concerned…
1- Degree of scalability: Here it is verified as growing on one side cost structures and other income. Scalable models have no direct relationship between them. They are those that can increase their income range exponentially without their costs go up to par.
2- Having analyzed consumer trends: If we want to get to sell “mass” products, we should be clear about the level of consumption or sales behave in a particular country. To do this, or we walk to do market research (if we have budget for it) or access to studies already done.
3- Comprehensive analysis on Google: This is an important mark business viability point. At the end of the day, you need to estimate the CPA (acquisition costs) that moves in the market. For this you can use the tool Google keyword tool to see search trends and apart, to estimate (not 100% real) of what it may cost you to cliquen in your ad.
4- Look into options or recurring subscription models Purchase: On the Internet now, in almost all sectors, getting sales is quite competitive. Therefore, if the business model based on subscription (auto insurance renewal rate services, newspapers) or recurrent purchase (style supermarket online) better we have the prospects for a return on investment derived from customer acquisition.
5- Low complexity logistically: Unless that is the differentiating factor, is much more manageable business if not incur costs of storage type, product handling difficult … read it simple and easy to sell products we can focus the activity of the company to sell and grow.
6- To study the possibility of offering a product demo / free service: It should not go unnoticed success they are having business models “fremium”, there is nothing better than the customer test the product to win their loyalty. Spotify is a good example.
7- Sector with interesting content: This point may seem minor; it can be one of the keys in your marketing plan. If for example you are selling diet products online, surely one of the most effective ways to approach your potential audience is by writing articles and videos of how important it is to care for the food and how to build a balanced diet.
8- Long life cycles: This factor sometimes is not taken into account but need to know how many times or how long we can compensate for the same customer. This will compensate somewhat the balance of costs and investments in recruitment.