Small Business Tips for Success: The feast/famine business model
The feast-of-famine business model refers only to my personal impressions of certain popular business models anyone might come across while searching for an online business.
This model of business, which is used most often by high-ticket programs or products online, would best be described as a recipe in disaster.
The basic idea is, if $1000 was the price of a sale, how many are you going to need to make a profit on your investment, quit work, buy a house, and so forth. Feast, or famine…
For those with a track record in online success, feast will most often be the case. If you have the wrong perception that online success is overnight, I see famine ahead.
The #1 tip for small businesses:
Without market research, you can’t believe that traffic will lead to conversions.
You can avoid being a victim to famine or feast by doing your research. Make sure you get the numbers right.
PPC (pay-per-click) marketing is all about tracking everything. Use tracking links to track leads and sales. You can also determine the cost per conversion/click through percentages of your campaign provider.
# 2: Small Business Tips
Next, estimate each sale’s worth. If the income is recurring, what’s your retention rate for your program or downline? Once you’re able to calculate your cost per lead/sale and have a good estimate of what each sale is worth, then you’re in business.
To believe that you can fly blindly with marketing dollars and good fortune will come to you is far too naive to be true. Make sure you track your marketing efforts to see which ones work and which don’t. This will allow you to identify areas that need improvement.
Tip #3 for small business owners:
The idea of feast or famine might seem to some like a desperate struggle for survival, set in some of the most hostile of settings. I’d suggest to those individuals that they have probably dropped a few rungs on the food chain in the time it took for them to form this opinion.
It is a competitive business environment. For success, it is best to try to be the biggest fish in any pond you can find. research and niche marketing.
4 Tips for Small Businesses
I would summarize by saying that many endorsements of unrealistic or unfounded business practices work from the assumption that people will always seek the path of least resistance. They want to achieve great success and get it for little effort.
A wonderful idea, but the lottery is also a great one. Your odds of winning the lottery would likely be the same.