The Only Business Model That Works
This post is an excerpt from my book Exit Strategy: The Exact Tactics to Transition from Where You Have to Be to Where You Want to Be. In today's world, one in which the consumer has all the power, there's only one business model that works. To get you started with the “freemium” model I've included Chapter 13 to help you in your efforts. If you'd like to grab a copy of Exit Strategy, you can buy it on Amazon HERE, or scroll to the bottom for a special bonus offer.
I'm often asked about the key to success. From accomplished hosts on podcasts to casual conversation, people of all ages and from across a variety of industries have asked me about the secret sauce that will make them successful in business so they can do what they love.
I only took one semester of business school. I made it halfway through and realized most of what I'd learned was to not lie, cheat or steal and don't do business with people who do. But after being in sales for almost twenty years, and owning my own business for the past several, I have learned that people do business with people who are like them. Business is done human to human.
When I get asked about the secret sauce, my “key to success,” and I tell people what I’m about to share with you, they rarely want to hear it. They’re often in search of the quick fix, the fast cash, and the instant success that doesn't exist anywhere but in their heads.
I can't blame them, though; I wanted it too. But, we have to accept that the road is tough and move forward.
The Only Business Model that Works
The key to success is to put in the time and effort and hard work up front, to provide tremendous value first, and follow the freemium model of business. Today, the only business model that works is the “freemium” model.
Get better at the basics and teach them. If you're not going to teach someone for free, someone else will.
– John Lee Dumas
This odd-sounding word is taking the online world by storm and is the way hundreds of online entrepreneurs are building successful, growing and thriving businesses.
The Freemium Model
The freemium model is a pricing strategy where a company offers some or part of their products or services for free, but the premium content has a cost associated with it.
For example, online business mogul and expert on creating passive income, Pat Flynn was blogging and providing resources, tools, and helpful reviews years before he had a product he could charge people for. And, when he did, he had built up so much personal brand equity that he was able to sell his ebook and make over $8000 the first month after launching his product.
Another example is former CEO of Thomas Nelson Publishing Company, Michael Hyatt. Long before Michael released a product, he added value wherever he could online and in the real world. He blogged about topics such as leadership and self-publishing. He connected with fellow bloggers and writers and helped them improve their craft. After building an audience of people who knew, liked and trusted him, Michael was able to grow a multi-million dollar business around his brand.
The Freemium Model with Traditional Business
In the traditional sense, the freemium way of doing business has been around for decades, though we didn't call it that.
Would you like a sample?
Brick and mortar stores have used the freemium model since the first craftsman decided to give a free sample of his product. If you've ever been to a Sam's Club or Costco on a weekend, you've probably been enticed with samples of all kinds. Give someone a free taste, whet their appetite and offer them the rest of the meal at a premium.
Hollywood has been using the freemium model since the first movie preview was released to the public. Hook people with the promise of an incredible on-screen adventure, give them a free sneak preview of what's to come and then charge them to get the full experience.
Movie producers have also used the freemium model for years. When Sylvester Stallone wanted to make the first Rocky movie he had to sell a studio on the idea for free before he sold them the script for money. He had to paint a mental picture for the studio heads and give enough of the story for the decision makers to see his vision for the movie.
Before we buy a new television, we want to see it. Before we buy a new book, we read the first few pages. Before we purchase a car, we test-drive it.
Stallone had worked for free before he made it big. Hyatt had written for free before he made it big. Flynn had researched, tested and shared before he made it big.
When you're starting out, you too will have to work for free before you make it big. Your business model works only if it's based on the freemium model. People will only know, like and trust you if they can clearly see who you are and what you're about. No secrets, no deception.
Particularly in a business where your goal is to get paid for what you know, your ideas are your product and your words are your content. Instead of making computers or baking cookies to show what you can do, you must write and record.
The Power Has Shifted
In today's modern world, one in which “spam” hardly means a canned meat anymore, you have to embrace a new way of doing business. The old concepts of bait and switch no longer work. Scammy and slimy salespeople no longer win. When information is everywhere, the seller is no longer in control, the buyer is. Openness and transparency are the ways you will build your business.
Give your best and give it freely. Show your audience that a relatively unknown person and business are worth paying attention to. Be human. We want to do business with other human beings and so do your customers.
For a limited time, I'm offering you a print copy of Exit Strategy for absolutely FREE! All you have to do is pay the cost to ship it to you (which is about $9). You can take advantage of this special offer and get your copy of Exit Strategy: The Exact Tactics to Transition from Where You Have to Be to Where You Want to Be by CLICKING HERE.