Episode 002 – Major internet business models are discussed
October 30, 2006 2 Comments
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In this episode Matthew Ryan talks about three major types of internet businesses. Including:
- How to get into the right mindset. Rich peoples’ mindset is discussed in book Rich Dad Poor Dad.
- Business Strategies and Models are: Information business, Service based business, product based business.
- No inventory or orders to place
- Passive income
- Very inexpensive to start. Get started free with a wordpress blog or a Blogger Blog
- Has the highest margins
- Can be launched quickly
- Very low risk
- Little technical knowledge required
- Products easily duplicated (although many search engines will issue penalties to websites for stealing content).
- Building brand image and credibility from scratch
- Grows organically
- Passive income
- No physical product
- Good margins
- Generally requires higher technical knowledge
- Takes longer to build and launch
- May cost more to start
- Brands are already established
- You are already passionate about the products
- Lower margins (especially electronics)
- Customers are more price sensitive
- Longer launch time if you carry your own inventory
- Higher starting investment – If you buy in bulk and warehouse it yourself
- Dealing with customers and problems on a consistent basis
Information Business
Pros
Cons
Service Business
Pros
Cons
Product Based Businesses
Pros
Cons
Doba Drop Shipping
Compare your list of interests with the different models to see where you want to go with each of your ideas.
Good Luck!
Starting Your Business
Matt,
I have enjoyed listening to your Podcasts and I have to say that the basic approach has renewed my interest in pursing an internet business. I am by no means an expert, but I would suggest that you team with Deb Augur (http://www.myinternetbusinessstrategy.com/tutorials/) in developing your future Podcasts. I know she covers some of the same topics in more detail and generated topic audios so she would good guest or co-host. The upside of your material is that it started on a base level that made the goal of an internet business seem acheivable without getting too bogged down all the techical details initially.
Hello, I downloaded your podcast from itunes but did not have a chance to listen to it. Now I am more enthusiastic about subject than before. Your easy to understand and implement style really inspired me. Thank you.