[av_heading heading=’#97. What Online Business Model Should You Choose?’ tag=’h1′ link_apply=” link=’manually,http://’ link_target=” style=” size=” subheading_active=” subheading_size=’15’ margin=” padding=’10’ color=” custom_font=” custom_class=” admin_preview_bg=” av-desktop-hide=” av-medium-hide=” av-small-hide=” av-mini-hide=” av-medium-font-size-title=” av-small-font-size-title=” av-mini-font-size-title=” av-medium-font-size=” av-small-font-size=” av-mini-font-size=”][/av_heading]

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Every business model has gurus passionately expounding the reasons why their way is the best. They can be very persuasive, but all business models have pros and cons. The right one for you depends on your personality, work style and the stage you’ve reached in your business.

“When you find the model that suits your preference then you can devote unlimited amounts of energy and love into what you’re doing and you become far more successful as a result.”

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Pros and cons of each business model

Membership programmes – members pay a monthly fee to learn from your site.

Pro: provide regular income for your business.

Con: members expect to get new input from you every month; eventually, it can feel like you’re on a content treadmill. There’s also a constant need to attract new members to grow the site and replace those who unsubscribe. 

Courses – students make a one-time purchase and learn at their own pace.

Pro: Once you’ve created the course, you can sell it over and over, so it becomes a form of passive income. 

Con: Students tend to start strong but lose motivation, leading to poor completion rates. That can be a problem if your business growth depends on selling follow-up courses or programmes.

One-to-one or small group coaching

Pro: Charging high prices for your knowledge and personal attention

Con: You have a finite amount of time to give to coaching programmes, so scaling is a problem, creating a bottleneck for business growth. 

High-ticket programmes – your expert knowledge, insights and systems come with a high-end price tag.

 Pro: Strangely, it can be easier to sell an expensive course than a moderately priced one in some circles, and you end up with dedicated and enthusiastic customers who are willing to pay to achieve their aims.

Con: Impossible to sell in some niches — including the education industry — and it usually requires a lot of time, input and a good team around you to set up and maintain high-end products.

Choose according to your business stage and preferred work style.

• Six-figure business or less:  Here, your main goal is making enough money to cover your lifestyle needs, and you’re still working things out. Try different models and see which one suits you best.  
• $100-500,000 per year: In this bracket, you begin to feel the strain and may find that you’re not enjoying the model you’ve chosen. If so, consider your reasons and options.
• Scaling to a seven-figure business: to get to this level, you must be enjoying the process. You need to manage your energy, ensure you have a good team and realign the business to work with your preferences so that you don’t burn out.   
• Seven figures and beyond: at this stage, you’re typically less involved in the business. It’s crucial to have systems in place and the right people to operate them. These businesses probably need several models. For example, you may have courses plus a high-end coaching programme. Or, you may sell books, one-off courses and offer a monthly membership. It helps if you’ve tried these ideas out as your business has grown so that you know how they work and if they suit your style.

So, which is your preferred way of working? Are you happy with the revenue earner you’ve chosen, or is it time for a change? Check your metrics, systems, your head and heart to decide on the model that will work best for you.
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