Entrepreneurs employ a variety of business models. A business model is an overall structure around which someone builds their business. It involves everything from planning how income will be earned, to the sales process, to how products and services will ultimately be delivered out to customers or clients.
Some models are more conducive to particular types of businesses or industries; some are selected out of personal preference. For More Detail Go To: www.starting-membership-site.com.Still others are deliberately chosen because they can make the entrepreneur more money faster, easier, and with less effort.
Income Models: How You Earn Your Money
There are many benefits attributed to a subscription-based model which outweigh other income models. Let’s take a look at some of the different types of models:
1. Trade your time for money. This is the most common and traditional of business models. This model is used the world over and is the basis for the employer-employee model. This is the same model used by many entrepreneurs, too. They think they are working for themselves, but they are actually working in a pseudo employer-employee model.
For example, most coaches and consultants and other independent business professionals trade their time for money. Their client is the “employer” and they are the “employee”. Nothing is all that different from working for a company. This model has many drawbacks, the main one being that you can only work so many hours in a day so you automatically top out on the amount of income you can earn.
2. Passive income model. The passive income model is one where you sell information or other products which do not require your actual intervention in any way. You can set everything up with an ecommerce system and you can literally make sales while you sleep. You no longer need to trade your time for money; you have an automated system. But passive revenue has its drawbacks too.
Income from this model is fairly unpredictable. For More Detail go to: www.awesome-membership-riches.com.Sure, you might make some money here and there, but in order to create more income, you’ll need to continuously employ various marketing strategies to promote interest. You can make money around the clock and now you can continue to trade hours for dollars and reap the benefits of having additional income through passive revenue channels.
3. The third income model relates to continuity income or continuous income. This is the model around which membership sites are built. Members pay a monthly subscription fee for access to your content and other members in the group. This income model has many benefits. First, you’re receiving regular income. As long as you have members, you’ll have income.
Also, this model is easily scalable. You can easily add members with very little expenditure of time, money, or energy on your part. You’re adding content regardless of the number of members. So the key is to increase membership. When you focus your marketing efforts on adding new members, every member you add is a future revenue stream. Contrast this with the passive income model, which in our case (not all cases) is assuming a one-time purchase and thus no income continuity.