Why A Business Model Is So Important

Tuesday, November 5, 2013
A business model explains the rationale of how a company establishes, provides, and captures value. It includes the product or services offered, sources of revenue, customer base, organizational structure, strategies, operational process, and financing. Basically, the methodology and infrastructure of a business combine to form the business model. This model should be created long before a business opens its doors. 

Why A Business Model Is So Important

Before starting a business, an entrepreneur should be aware of the basic process for building one. This knowledge proves valuable when creating the business model. Certain aspects of infrastructure, operations, and strategic thinking have proven successful, while others are destined to fail. Being able to distinguish one from the other enables a business owner to avoid the pitfalls. A business with a model that maximizes opportunities and avoids threats is positioned for long-term success.

Sales are an important aspect of the business model and this is where proven methods really shine. By learning how to quickly generate income from sales, any business can get out of the growing pains stage much faster. The sooner a company can pass through this phase, the less likely it is to become a statistic. Quick success is especially important in the online world, where competition is particularly fierce. When a company becomes financially independent, so will its owners, and this is a much more comfortable way to live.

Closing a sale successfully is what leads to income so a business model should include information regarding closing techniques. These should be based on success achieved by other businesses and should be shared with the entire staff. Every employee serves as a mouthpiece for the organization so it only makes sense that each staff member be skilled in closing a deal.

Prospects have many excuses, especially during times when money is tight. They may be fearful of making a purchase because they do not want to spend their hard-earned money. Some of them convert this fear to aggression, placing pressure on the business. Staff should be trained in handling these situations and know how to convert negatives like this to positives.

Leaders in business know what it takes to achieve and maintain a high level of sales. It is not unusual for them to have salaries into the seven figures. By incorporating what they do and how they do it, any business can realize similar results. A sound business model can result in an entrepreneur making more money than ever anticipated.

Driving Traffic To Your Website To Grow Your Mlm Business (part I)

Wednesday, August 28, 2013
I have already mentioned in another article how depending on your warm market to grow your MLM or network marketing business is a recipe for failure. How then, do you create a non-stop flood of targeted leads? In other words, how do you drive traffic to your website? Let's talk about a "traditional" business. What do they do to generate publicity for themselves, and therefore generate customers? They MARKET their business. Notice anything? Network MARKETERS. MARKET a business. See the connection? You are still marketing your business to drive traffic to your site and generate income; the difference is in the business model. Marketing strategies of a traditional business are the very same strategies that network marketers use to create website traffic, or if they aren't using them, they SHOULD be. They are: · Build a website (which includes the components of an automated marketing system as well as a call to action, otherwise it is just a very expensive image ad) · Try to get their business written up in the press · Advertise to drive traffic to your website and generate customers (reps in your downline) There are many different forms of advertising that enable you to drive traffic to your site and generate a flood of pre-qualified leads for your network marketing business. Here is a partial list: · PPC (Pay per click) · SEO (Search engine optimization) · Email marketing · Blog/Write articles · Video marketing · Press releases In this post we are going to focus on PPC advertising. What is Pay Per Click (PPC)? Pay-Per-Click (PPC) is an advertising method which makes use of search engines, websites and network traffic. A user clicks on an ad which directs, or drives, them to a particular site. Each click is paid for by the advertiser (YOU). PPC is based on a bidding process where the advertising party (YOU) bids on a keyword or string of unique keywords. Competitive keywords are more pricey. However, with good keyword research you can find keywords as cheap as $0.01 per click. Google AdSense is the largest network to advertise via PPC, and they have an excellent keyword tool for you to research your keywords and keyword phrases before you bid on them. Advantages of PPC There are many advantages to PPC advertising: · Fast and easy. PPC creates instant traffic to your site. You can set up your account, create an ad and get it online within a day. · Top position easily achieved on a search engine if you are willing to outbid your competitors. · Complete control over advertising campaign. You set the daily advertising budget according to what you can afford (as little as $5/day), in what geographical regions the ad will run, you can even adjust your budget to be more or less on certain days depending on daily response results. · No limit to the keywords and keyword phrases you can use to advertise your network marketing business or affiliate product. · Results are easily tracked and measured. Statistics gathered enable you to keep track of the exact cost per customer acquisition, determine which keywords perform best, etc. · No commitment necessary. You can run your ads for as long or as short a period of time as you want, from just days to many months. You decide. Disadvantages of PPC What are the downsides to PPC? · It costs money. Why do I list this as a disadvantage? It's obvious it costs money, "pay" is right in the name of the advertising method! Well, in any business, low operating costs is always a primary goal, and there are free methods for advertising your network marketing business, so I felt it was appropriate to note this as a disadvantage. If you have the money, it is highly effective! If you are operating on a tight budget, however, this is something to consider when developing your network marketing ad campaigns. · People are skeptical of advertising and therefore tend to ignore sponsored (PPC) ads. Various studies have shown that only 15-20% of small businesses actually get a good return on investment (ROI) and recoup their PPC advertising costs. To Use or Not to Use PPC My thoughts on PPC: If you track your statistics closely and optimize your advertising dollars spent, this is an effective part of a multi-faceted marketing campaign. Do not depend on it as your sole source of revenue, just as I have advised you not to depend exclusively on your warm market to build your network marketing business. Also, design your ads so that they are aligned with valuable information on your site. Don't try to convert visitors into customers (or in your case, representatives in your downline) in one step. Nurture the relationship with your prospects through providing valuable content that is of benefit to them, and lead them down the path to where they are clamoring to become a part of your network marketing business, not you begging them to do so.

Community Assumptions And Business Responsibility

Saturday, August 24, 2013
Social responsibilities lay in business framework Most people think of business simply as a way to generate money. While this may be a primary motivating factor for some, it also carries many underlain responsibilities. Business owners become part of the infrastructure of the community. They supply a service or product which fills a need of the community. The common bond linking community and business lies in each others realization of shared assumptions. Business realizes they fill a need, desire or fixation of the community and the community realizes who their contributor is. While community can survive without business, business on the other hand cannot exist without community. No community is self sufficient and no business is customer free. Business must develop social programs and policies that can be seen as responsive to social expectations, but not necessarily limited to socially demand. A firm having social awareness is in tune to its customer’s requirements as well as its’ viewpoint. There are three main driving forces between business and society: 1. The idealistic outlook: primarily relates to principles and social responsibility, 2. the institutional outlook: Its’ expression of social responsiveness 3. the organizational orientation: primarily relates to policies and management of social issues. There are four Basic Models of Business Relationships 1. Humanitarian - adhere to principles of compassion and reinvesting into the community 2. Ethical - adhere to principles of honesty and decency 3. Legal - adhere to all laws and regulations 4. Economic – adhere to making a profit. While a certain responsibility lies in being a good corporate partner and citizen, the most fundamental business responsibility is that of economics. The primary reason for being in business is to make a profit. Business exist for generating revenue for the business and in so doing, provides revenue for its employees. All other business responsibilities are based or established upon economic assumptions which is the responsibility of the people in charge. Without this statement the prognosis of future success becomes nothing more that arguable considerations. While plotting a course of action, businesses are expected to operate within the framework of societal law, thus carrying the burden of legal responsibility. Likewise, legal responsibility is restricted to the “letter” of the law, while the “spirit” of law is reserved for ethical reasoning. Next, businesses are expected to have an ethical responsibility which is defined as “any and all activities or practices which are either expected or prohibited by society members even though they are not written into law.” Ethical classifications are further separated from legal activities by use of negative definition: ethical responsibility relates to those social expectations and norms not yet codified into law. In the same line, philanthropic responsibility designates those areas of voluntary social involvement not specifically prohibited or demanded of companies because of their economic, legal, and ethical responsibilities. Business also carry as a philanthropic obligation to contribute to its community. This responsibility is discretionary in nature and seen as an investment in future growth. Even though this is not a requirement it is a necessary and sufficient obligation that socially expects from responsible businesses. Theoretical Assumptions If the economic role of the business is reduced to the narrow emphasis of profit it then could become blinded to making of contributed economics. This posturing leaves out the need for community relations. There is another scenario to consider which is in contrast to the ordinary view, the so-called separation thesis. This is when businesses focus either on profits or social concerns but not on both. This rises a question of debate that businesses can not only be profitable and ethical, but they should fulfill these obligations simultaneously. Can a business be profitable and disconnected from community? In today’s world, franchising brings business into a community while being completely detached from community needs. The clear-cut separation of business from community raises the problem of coexisting within a harmonious environment. Even though a business may appear to be separated the burden of responsibilities still apply. The business provides a tax revenue as well as product, service and employment. There are interwoven responsibilities which represent the stimulus for economic considerations. The social pressures imposed on today’s business are decreasing in importance, whereas economic and legal responsibilities are a requirement and ethical practices are vaguely expected, charitable contributions although desired, are completely voluntary. A good business citizen, while striving to fulfill all its responsibilities, will actually apply the necessary priorities to secure its status in the community. Businesses have a responsibility that goes well beyond the demands of law and common morality. They set as examples of good moral judgment and community responsibility.