"A brief history of the development of business models might run as follows. The oldest and most basic business model is the shop keeper model. This involves setting up a store in a location where potential customers are likely to be and displaying a product or service.
Over the years, business models have become much more sophisticated. The bait and hook business model (also referred to as the "razor and blades business model" or the "tied products business model") was introduced in the early 20th century. This involves offering a basic product at a very low cost, often at a loss (the "bait"), then charging compensatory recurring amounts for refills or associated products or services (the "hook"). Examples include: razor (bait) and blades (hook); cell phones (bait) and air time (hook); computer printers (bait) and ink cartridge refills (hook); and cameras (bait) and prints (hook). An interesting variant of this model is a software developer that gives away its word processor reader for free but charges several hundred dollars for its word processor writer.
In the 1950s, new business models came from McDonald's Restaurants and Toyota. In the 1960s, the innovators were Wal-Mart and Hypermarkets. The 1970s saw new business models from FedEx and Toys R Us; the 1980s from Blockbuster, Home Depot, Intel, and Dell Computer; the 1990s from Southwest Airlines, Netflix, eBay, Amazon.com, and Starbucks. Poorly thought out business models were a problem with many dot-coms."
Today, the type of business models might depend on how technology is used. For example, entrepreneurs on the internet have also created entirely new models that depend entirely on existing or emergent technology. Using technology, businesses can reach a large number of customers with minimal costs. Now that we have a brief overview of the old business model style, this brings us to the modern day term that applies to marketing online. The new business model is really not that far removed from the old offline style, but in all actuality, the business profitability of the new business model mentality carries with it, distinct advantages.
Being the new netpreneurs of Google, we no longer have to be concerned with overhead expenses like buildings, rent, location, exorbitant taxes, employees and the million and one things that offline business have to be constantly aware of. In other words, the entire process of producing a small business startup program becomes almost no cost. That one new feature in the way that business is being conducted online has become the paradigm shift. What once was thought of as nothing more than "new fangled," is now seen as the majority. Personally, I am proud that the internet works for people who want to live life in a totally different way. The perfect business model today is a successful enterprise that offers all the features, tools, training, mentoring and motivation that is required to have success. This is precisely what we have in the system known as Jaguar Marketing. Al Turnquist, CEO of MOM, Predator and Jaguar Marketing is a huge part of this new business model. With his incredible intuition and drive, he is being seen as the ground breaker for new ideas. When I think about the new business model, and how it relates to real business professionals being able to build rock solid online businesses in a totally credible way, my thoughts naturally gravitate towards Al Turnquist.
Rigo Dominicci-Marketing Specialist
http://businessprofitability.net
http://businessprofitabilitygoal.net
http://businessprofit.linkscout.com
