Internet Business Model – The Growth 2.0 Strategy
Breaking out of the traditional, many small business owners find themselves wondering how to create an internet business model. How did companies like creditcards.com sell their domain for about $40 million (plus an additional $40 million for the company)? Or what about the founder of plentyoffish.com? Well, he started it at home…didn’t have an income for 3 years, now it’s a multi-million dollar company. What kind of internet business model are they using?
It’s called…the Growth 2.0 Strategy. Here’s how you can create that internet business model, in 5 easy steps:
1. Idea & Target Market for Your Internet Business
A startup all begins with an idea. What is your internet idea? Is it something your willing to work on for a LONG time, because it usually takes about 4-5 years to grow an internet business. Most of this will be without money. Who is your target market? Is it a customer you’ve worked with before?
2. Research your competition and their internet business model
Research your competition. How are they generating revenue? How many pageviews is their internet site getting? Are they serving the same market, or just a niche area of that market? Can you figure out where that traffic comes from?
3. Build & promote your internet business
Hire a developer, or partner with one for a profit share. Spend some time brushing up on your internet marketing skills, get educated about SEO. Once your site is finished, you should have gained the resources necessary to market it.
4. Give it away for free, and keep marketing
This requires you to have a free internet business model, at least for a while. Once your internet business begins generating traffic, however, you should be able to pay yourself a little chunk of salary from advertising revenue.
5. Begin looking for a revenue stream to complete your internet business model
Even a free internet business cannot keep it’s doors open long money sustaining it. If you have something as simple as just a blog, that’s still a market reach many technology innovators don’t have. If you have that market reach, that means you’re in a strong negotiating position to revenue share with a product. You may decide to take a gamble, and instead of paying yourself a small salary from advertising revenue, you could also reinvest that into a product. The good news is, when a product does eventually launch…it’s got an established list of customers; and can scale more quickly because you’ve already done the hard part.