TTVB #001: Use These Business Models to Launch Your First VentureMay 10, 2023
On today's agenda, I will walk you through some accessible business models anyone can use. Some models may feel more applicable than others. However, I intend to examine each model and its earning potential comprehensively.
Let's get started.
Digital Information Product
Typically produced in ebooks, templates, courses, graphics, or software, digital products are offered online, usually accessed behind a paywall. Think Etsy or Gumroad, amongst a few other digital product hosting sites. You can create a product with minimal start-up cost to produce a product that can be purchased repeatedly. No active fulfillment or overheads are needed as it is a product offering that can be automated. Initial revenue may be low, but over time it can provide a steady stream of income, which can be scalable through marketing.
Coaching is leveraging your prior experience and knowledge. You can demonstrate your expertise in a subject, and it can be done by utilizing existing networks to gain new clients or by marketing your offering on platforms like LinkedIn. Specifying a chosen niche or topic can help target clientele quickly. It is a venture that requires you to sell your time actively. Hence it has its limitations as far as automating can go. However, it presents medium to high earning potential, with the opportunity to create long-term coaching relationships that can lead to a steady income.
Utilizing your prior skills, you can offer freelance services similar to coaching. Freelancing allows you to provide an on-demand service you can offer as and when you decide, without the traditional structure of long-term employment. You can estimate time and compensation per the project's needs, which can be completed in your spare time. Whether you have skills in writing, graphic design, web development, or any other area, you can market your offerings through freelance portals like Fiverr, Upwork, or your own social media and start attracting clients. With a strong profile, you can optimize your process and secure a sustainable earning potential. You can charge accordingly and automate your approach to avoid selling your time 1:1. Freelancers can earn high potentials depending on the skill needed. However, long-term sustainability can be slightly affected, as freelancers work to contracts that do not always guarantee a fixed duration.
Referral Schemes or Referral Links
Encouraging new customers to purchase a product or service through a personalized link is known as referrals, a form of marketing. This link activates a commission-style scheme where customers purchase via the link and grant you a share of the sale. Referrals are common in the influencer, YouTube, and social media communities, where someone advocates for a product or service and motivates their audience to purchase it. Once the link is set up, purchases can be made as and when new customers are acquainted with the offering, making it a highly automated process. Referrals have the potential to become a recurring revenue stream, but revenue is dependent on the marketing and exposure of the product and referral link. Referrals are typically a reliable source when there is a pre-existing audience to tap into. However, offering a relatable product can be a trustworthy form of marketing if you have a particular niche or interest. With platforms like TikTok, it is optional to have a large audience already in place.
Of course, a Tiny Venture is only complete with reliable distribution and adequate marketing. Having a fantastic offering per the above is excellent, but if people don't know about it, you cannot sell it! Please don't underestimate the importance of building an audience, but do not overestimate how difficult it is to grow one. An authentic product will attract a loyal audience (a little bit like this one!) One of these ways is through having a newsletter, a collated community that you can easily access and market to as and when you need. Platforms like Substack help you create brand awareness and collect people interested in your product or service. The automation of a newsletter is excellent. Consider even having someone write it for you. You can even combine multiple offerings, like selling your product or service and placing referral links in the newsletter for relevant products. It is best to retain audiences but don't be disheartened. It can take some consistent work to gather a sizeable audience, but with time and consistency, you can build your network to tap into.
In conclusion, the higher the level of automation a venture offers, the better. Maintaining and building a portfolio of ventures can be challenging when they all require an active time commitment. So consider the newsletter, referrals, and Digital Info Products your long-term strategy. These are the best to start building authentic brand awareness. Freelancing and coaching can be done right away to secure immediate income. With the initial marketing sorted, you can sell your offering immediately and manage inbound clients on your own time.
Now you may have all the information regarding different business models, but I hear you ask, what exactly is my skillset? Don't worry. In the next edition, I aim to guide you toward better understanding your unique offering so that you can identify which model best applies to you.
See you next week!