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….
- You must 100% own and control the brand
- Affiliate sales are fine but they are pocket change
- You must control the revenue model, margin, sourcing, supply, etc.
- There must be a recurrent revenue stream (residual income)
- There must be an opportunity for a “high revenue segment”
- At some point you must be able to sell part or all of the business
- The business must have multiple revenue streams
- The business must have internal redundancy
- 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.