Five Minutes With Jack Ramblings Of An Insane Internet Marketer

September 16, 2010

Episode-35- What Makes an Effective Online Business Model

Filed under: Podcast — Tags: , , , — JackSpirko @ 1:19 am

So what makes a good business model?  I always say it is all about passion right?  Well that is not really about your business model but your market niche, once a niche is defined we must focus on the actual rules of a business revenue and marketing model.

Some rules I have for any business model are….

  1. You must 100% own and control the brand
  2. Affiliate sales are fine but they are pocket change
  3. You must control the revenue model, margin, sourcing, supply, etc.
  4. There must be a recurrent revenue stream (residual income)
  5. There must be an opportunity for a “high revenue segment”
  6. At some point you must be able to sell part or all of the business
  7. The business must have multiple revenue streams
  8. The business must have internal redundancy
  9. Some portion of the business should be a legacy for your heirs

While I believe in the brand building early states of a business you need to focus more on content creation than revenue generation you also should start with the end in mind.  Further it is important to understand that you don’t have to meet every rule in the short term but the business and its’ revenue model must have the potential to be built into this format over time.

  • Craig Zarkos

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    Awesome episode. you anwered the question before I asked.

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    Hey Jack, I’m curious as to how you administrate the recurring charges, such as the MSB. I’d like to do similar, and right now I’m looking at integrating Paypal with this:
    What are your thoughts on the best way to handle this, and for that matter, all revenue streams that come through a web based site like TSP ( or what I’m trying to do)
    I’m very much modeling TSP, just in a totally unrelated field.

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    Jack might have a better idea, but you can use a shopping cart that supports recurring billing (recurring orders, subscriptions orders, etc). My favorite so far is NopCommerce (100% free).

    Jack – looking forward to the Mastering the .22 Rifle!

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