I was asked the question, Which do you choose first, a Business Model or a Product? Well, I guess that depends. Is there something you're passionate about or something you want to sell? Do you have a budget or know of a particular marketing strategy? Answer these questions and you'll find the answer to the first.
Business Model
There are different types of business models, each one works best for different products and services. Multiple business models can also be combined to expand the businesses reach. Different types of business models are:
Brokerage - Bringing buyers and sellers together to facilitate transactions
Advertising - Website provides content with banner ads
Infomediary - Assisting buyers and sellers to understand a given market
Merchant - Wholesalers and retailers of goods and service
Manufacturer - Selling the product directly
Affiliate - Businesses offer financial incentives when people click on a websites link
Community - Revenue based on sales and services or voluntary contributions
Subscriptions - Users pay a fee for a reoccurring service.
Utility - Customers pay each time they use the service.
Demand & Competition
How popular is your product or service? Is it in high demand? What would be the setup costs? These are all questions to ask yourself with each product you have.
Google Ad Words
Using Google AD Words can help you see how popular your idea is. Google Ad Words can tell you how many people search for that topic, how much it would cost to advertise and if the search gets low, medium or high traffic.
There are many tools and resources available to help assist you in finding the right product and the best business model for your product.
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