Small Business Tips For Success: The feast or famine business model
The feast of famine business model merely refers to my personal perceptions of certain prevalent business models you or anyone else might likely find while searching for a business to join online.
Most often employed by many high cost or “high ticket” programs and products online, this model for business would most accurately be described as a recipe for disaster.
The underlying premise being, at say $1000 a sale, how many sales would you need to make a return on your investment, quit your job, buy a house, etc., etc. Feast or famine…
For those with a proven track record of success online, more often than not the case for them will be feast. For those with the skewed perception that any kind of success, be it success online or success in general, happens over night; I see famine in you future.
small business tips #1:
Operating your business on the firm belief that x amount of traffic will generate y amount of conversions without the market research to prove it will cause you nothing but grief.
The best way to avoid falling prey to a feast or famine type scenario is to do your homework, and make sure that the numbers support your efforts.
For PPC (pay per click) marketing, be sure to track, track, track, everything. By using tracking links in your ad campaigns you can determine your cost per lead as well as your cost per sale along with your cost per click/click through percentages provided by you campaign provider.
small business tips #2:
Next, estimate the value of each sale. If the income is residual, what’s the retention rate of your program or down line? Once you can place a decent estimate on how much each sale is worth and you’ve calculated your cost per lead per sale, then and only then are you in business.
Flying blind with your marketing dollars in hopes that good fortune will smile upon you is far to fanciful a notion to actually be effective. Be sure to track all your marketing efforts so that you can be aware of what works and what doesn’t; as well as what could use improvement.
small business tips #3:
To some, the entire notion of feast or famine may seem a bit much like some savage struggle for survival set in the most unforgiving of landscapes. To those individuals, I would suggest that in the time it’s taken them to form said opinion, they have most likely dropped an additional notch or two on the food chain.
Business is extremely competitive by nature. The best strategy for success is to always try to ensure you happen to be among the biggest fish in the smallest pond I can find i.e. research and niche marketing.
small business tips #4:
In summary, I’d say that most endorsements of unrealistic and unfounded business practice work off the premise that people in general will always take the path of least resistance; forever hoping to not only get something for nothing but, attain great success with little effort on their part.
A very lovely notion, but so is the lottery; and your odds would probably be about the same.
Unfortunately, I’ve found out (the hard way), that internet business is not the financial freedom vending machine I was led to believe it was. For every few dollars I put in I have yet to find happiness wrapped in $100 bills (although I do remain hopeful).
Be sure to treat your business more like a business and less like a lottery and you are sure to do well.