Traditional Business Model Vs Online Business Model

Posted by Mr Man

Brand & Marketing

Aug 8, 2013

739 Views

Traditional Business Model Vs Online Business Model

A friend asked me few days ago why in the world you spend so much time in online. He’s idea was doing a real business instead sitting front of a computer in your own home. To him it seemed impossible and pointless to do business online. He had very strong old tradition roots how to make business. We argued in what way is easier to make your first million. He said it’s better to do with traditional business model I stayed to online business model. You can make your own decision but I tried to explain him why I think online business model is better than offline although he did not agreed with me. I used following comparison to explain him why online business is better.

Traditional Business Model

Need’s more investing – 5000.00$ – 10000.00 $– Most people would need to get a loan for that kind of money if they want to build their own business.
Takes year(s) until business get’s into profit.
You need to be at many places. - Contracts, partnerships, meetings.
You marketing can be limited very easily – If you market in Europe It’s difficult to sell your products to South America
Need to pay for products delevery
Need to have many employees.
Need to have inventory
Need to pay the rent.
You have less freedom.

Online Business Model

You have to invest less – $200-750 - It’s possible to start even less than $100.
Takes only months until business gets into profit.
You can do your all work at home.
Whole world is opened to you.
You can work alone or with a small team. - People from your team can be all around from the world.
No inventory needed
No need to pay the rent
You have more freedom

I’m not traying to say that offline business is not going to work. It’s working just fine, just it needs more from individual to get started. My friend with who I was arguing also challenged me to race. Who earns his first million dollars wins. Sounded little bit crazy but I told him, let’s do this then. He also told me that he is starting to build his own company very soon, so he’s not joking around here. You can share your opinion what you think what solution sound better to you and why?