Business Model

What does "Business Model" truly mean and how has the web changed the traditional business model that we know or perceive. This is probably the most discussed and least understood aspect of the Internet today.

Really, a business model is the method of doing business by which a company can sustain itself, that is generate revenue. This really means "where specifically is the company positioned in value from the revenue source."

Some business models are quite simple. A company produces a good or service and sells it to a customer or customers. If all goes well, the revenues from sales exceed the cost of operation and the company realizes a profit. Other models can be more intricately woven. For sure, Internet commerce will give rise to new kinds of business models, but the web is also likely to reinvent tried-and-true models. Auctions are a perfect example. Look at e-Bay and how it has popularized the auction model and broadened its applicability to a wide array of goods and services.


The key to choosing a business model is to find one that fits your "Life Plan" your "Life Style" and what you love to pursue. This will ensure that you spend the right number of hours each week, take the right level of risk, are practical in terms of your financial expenditure, and gain the kind of satisfaction and success you're after. Whether that satisfaction is the pleasure you get from putting together a new business, to secure your life style or making lots of money or you want to leave a legacy for your children or grandchildren.

Many times people jump into things like MLM, Affiliate Marketing or something equally as challenging without first considering their own working style. There's nothing wrong with models, they just aren't the right models for everyone...be honest about what you are willing and able to do before you waste time trying to make a bad business model fit.

Knowing your temperament, how much energy you can muster after a 3 hour commute and 8 to 10 hours on a job, family commitments, sleep and unwind time is critical to deciding what kind of part-time business to start, if that is what you are looking to do.