Have you ever wondered why it is that most businesses fail? What do successful businesses have in common, and what are the top successful business models anyways?
30% of businesses fail within their first 2 years, and 50% of them fail within their first 5 years. With odds like that, yes, you can still create and build a business from scratch…but it’ll take a lot of work, and you have a high chance of not being able to make it.
You’re probably better off just buying a business that is for sale than getting involved in being a startup.
A solid reason for why businesses fail, and especially in this current digital economy, is the way the business deals with their revenues and numbers.
More importantly, what they’re selling, who they’re selling it to, how much of it they’re selling and how much they’re selling it for.
There are three different ways to generate income inside of a business, and we’ll be calling these the “3 profit activators”.
These 3 profit activators are:
- You need to get more customers.
- You’ll need to do reapeat business with those same customers.
- You need to deliver high-ticket products, to increase revenue.
If you’re unable to tap and make use of these 3 profit activators, then your chances of growing your business with time…is going to be slim to none.
Not to say you can’t be successful without these activators…but looking at things through these filters, definitely changes things.
They allow us to run through every different business model, to see if any of them have some, none or all three of the activators and allow us to get a better understanding of what a successful business model might be like.
Some Of The Business Models
- The 9 to 5: It’s clear that this model, won’t have any of the three activators. If you’re working a 9 to 5, then you usually have your revenue be confined to the time you put in.
There are no customers involved, and there is most likely not a way for you to “sell higher ticket product”. It’s not really a business, you’re the one that is being leveraged.
- Real estate flipping: It’s going to be fairly difficult to do repeat business to people you’ve already sold a house to…but it is considered high ticket, and you can for sure look for more customers.
So it’s not such a bad business model, as long as you can keep getting customers. Ultimately you’ll want to hire a team of people who’ll go out there and find you deals, and will do some of the work for you.
- Brick-n-Mortar: The idea behind brick and mortar businesses is to get more customers in the door, and do repeat business with them, however, they don’t usually have a high ticket product they can then put in front of the customers.
It’s all about low priced product selling and volume, which is getting harder and harder to do because of companies like Amazon.com and Walmart, and the fact that a more and more people are starting to prefer shopping and buying online.
- Shopify or Ecommerce: This business plan revolves around getting more customers and selling these customers more poducts.
With increasing advertising costs, you’ve got to sell high volume, to have any fighting chance, and it can be a constant grind. Apart from that, someone who has bought a fidget spinner off of you, is very likely not going to buy anything in the “thousand dollars range” from your store, so there is likely no high ticket involved, even if you have somewhat of a customer base.
Bottom line…you’ve got to sell a LOT.
- Low ticket affiliate marketing: Affiliate marketing a model that could potentially have all the three activators.
You can get more customers, you can sell higher ticket products to increase revenue and you can do business with repeat customers because of subscription services.
It’s the best of all worlds, because you can pick and choose to partner with different companies, which gives you that flexibility. But you need to choose affiliate marketing programs that not only have a strong backend…but that also reward you on the lifetime purchases that the customers you bring in, make.
As you can see, some of the business models have flaws, and others, even though they might have one of the profit activators…are in a very precarious position because of how things are changing all the time.
To have the highest chance of success, the idea then is to choose a business model that has all three “profit activators”.
But which models out there have all three activators?
Well, there are 4 business models that have all activators. The “core four”, as they’re known. We’ll define these core 4 busines models to be, both high leverage AND high ticket business models.
They should be location independent (online), with little to no overhead (expenses), and there must be a way to make fast profits.
It must be easy, lucrative and fun.
So What Are The Core 4?
The core 4 business models are:
–Affiliate Marketing: You can get more customers, do repeat business with the same customers, AND, if you choose the correct affiliate program, you can have that high-ticket feature.
-Digital Courses: This is where I’m taking the knowledge that I have, and I’m creating a product out of it.
The knowledge industry is booming, and there is no limit to the amount of copies you can sell. It’s high leverage, because you can create it once, and sell it over and over, and it can be high ticket, because you can put the price on what you know.
-Coaching and Consulting: It covers the three profit activators, but there is NO overhead. You can do live chats, of skype or other video calls…and it’s high leverage, becuase you can group coach and you can charge more, the more you know or the more of an expert you are.
-Masterminds and Events: These also cover the three activators, and most go for a high ticket price tag.
They’re an experience, which is a very different from of value. It’s the most intimate, the highest point of value you can give. Your time.
If you want to learn more about these core 4 business models, how to tie them all together and how they all work individually, as well as get an action plan on how to start any one of them from scratch… you can learn about them here