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Reverse Sale: The Answer?

5/7/2012 4:13:00 PM -- Ted Krapf

How do you monetize your online presence? &nbsp;If you are 'in business', I would think you are probably in the business of making money. &nbsp;Are you running an eCommerce site? &nbsp;Are you advertising to your visitors? &nbsp;Are you selling a service, subscription, or knowledge? &nbsp;In the late 90's, it seemed like everyone was getting into the online game. &nbsp;Giant ideas came and went. &nbsp;Some things have changed, but undeniably some very simple, non-technological principals still apply:<br /> <br /> <br /> A great idea isn't the answer, filling a niche is. &nbsp;Giving every possible option isn't the best idea, stressing the important options are. &nbsp;Providing customer service is key, but providing excellent service is paramount. &nbsp;Simplicity over complex. &nbsp;You don't need to build a spaceship to get across the street.<br /> <br /> <br /> What I find most interesting the the concept of the reverse sell business model and how it is applied to the web. &nbsp;Take Facebook for example. &nbsp;There are 100's of millions of users on Facebook. &nbsp;Not a single one paid to join. &nbsp;They pay no monthly subscription fee. &nbsp;Not even a licensing fee. &nbsp;Yet Facebook must have a mega amount of expenses for just their incredible infrastructure that operates the system. &nbsp;Perhaps the reverse sell has become so common place in the virtual world that entrepreneurial folks are missing out on extending it. &nbsp;<br /> <br /> <br /> Think of the revolutionary jump from say a (almost completely defunct) arcade now. &nbsp;As the business owner you have to invest in very expensive equipment, employees to babysit the patrons, rent, electricity, etc. &nbsp; Now tell imagine someone telling you the customers aren't going to pay for play time, but instead you have to generate revenue from the ad placements on the walls. &nbsp;You'd jump off a building.<br /> <br /> <br /> The incredible audience potential on the web obviously changed that paradigm. &nbsp;Some sites today use the advertising model: sell pay-per-click (PPC) ad spots on their site. &nbsp;Traffic = cash. &nbsp;Some take a gentle tiered approach. &nbsp;Free membership gets you ten features. &nbsp;A paid membership gets you twenty goodies. &nbsp;The yearly subscription get you all the goodies. &nbsp;Others give the user everything for free and a simple monthly or one-time charge removes the ads.<br /> <br /> <br /> What I am curious to see is what that next reverse sale model will be? &nbsp;Throughout the history of business, people have found clever ways to capitalize on their skills and ideas. &nbsp;How will your next idea fare? &nbsp;Blast off or bust, just keep trying.

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