Here’s the Transcript:

What is the Best Business Model to be in?

Now, I get this question every few weeks at my support desk, on my live chats on my websites and I’ve been doing it for a long time.

I’ve been launching products for 11 years now. So I get this quite a lot and it’s only escalated as more people know me now.

In the last 6 years, I get this question every few weeks without fail.

My answer to this question is really simple, any business model that you’re committed to is going to work if you have the right guidance. If you have the right infrastructure and if you have the right amount of hard work and commitment towards that model, it’s gonna work.

Whether it’s E-commerce, whether it’s information-based businesses, whether it’s done-for you services, software in the service business.

You could even have an offline business and as long as you put in the work and the effort required you’re gonna succeed at that.

But if you’re in the information-based space, I do have a very strong and different opinion about the information based space, right.

The reason why I have this opinion of the information based space is because, I think we’re on the ground floor of this E-Learning sort of industry that’s just booming.

According to Forbes.com, it’s gonna be a $325 Billion industry by the year 2025.


So we’re literally on the ground floor, right. E-Learning or information based businesses have major advantages like you don’t have to hold inventory. It’s really scalable.

If you create a product you can keep selling it, it’s not like you have to create it every single time for each buyer. You just create it once and then you just keep selling it, right.

So in the information-based space, there are 3 parties and there’s an online income pyramid that not a lot of people talk about.

So let me adequate you of what the online income pyramid looks like.

So here is how it looks, there are the affiliates then a level up is product creators and then it’s the traffic sources, right.

The Affiliates are at the bottom of the pyramid, they take all the risk to promote someone else’s products and they get paid only and only if they make sales for the product creators, right, which is one level above them.

There is a massive risk with this, most affiliates are into the hope based marketing where they send traffic and they hope to get a sale and then get commissions and they’re just burnt out.

And they’re not even building their own business which is not the way I would build my business if I knew better, right.

You’re not building any long term assets because if the company or the product that you’re promoting decides to go out of business, well, you’re shit out of luck.

Because they shut their business down and you’re out of business because of them.

So it’s not a very wise decision to get into the affiliate marketing side of things unless you have websites that already have traffic, in that case, it does make sense.

But if you’re a Product Creator, you have Lesser Risk because you only pay affiliates when they make sales for you and you also have the ability to get more affiliates to promote your products.

So your business is more scalable than an affiliate, right.

And then there is the Traffic producers or the traffic agencies like Facebook, Google, like local traffic agencies, Facebook traffic experts, Adwords experts whatever.

The Traffic Agency takes the Least Amount of Risk because:

1. You Get Paid Upfront. Most of these traffic agencies you’re gonna have to pay them upfront.

2. You Don’t Have to Rely on Hope Based Marketing where you send traffic and you hope for sales, you get paid upfront so whether it converts or not, you’re not losing any money or you’re not losing any time.

3.  You’re Always Scaling and You’re Building YOUR Own Business. As time goes on and it always happens as a business, right.

When you start doing business, it’s gonna take some time for people to realize that this is what you offer and this is your products or services that are quality.

Then they recommend their friends to it, then you start figuring things out on your own in your business and that’s when it grows.

So, if you’re going to spend your time and money and effort and hard work into doing something, Why not build a business that is gonna produce money long term?

And traffic is one thing that’s NEVER GONNA DIE, it’s something that the web needs. So it’s always gonna be more in demand.

That’s why I think the traffic agency and the product creation part of this online income pyramid is the BEST position to be in.

So these according to me are the two best business models that exist online, for the simple reason that there is little risk, higher rewards, it’s in a growing industry.

And this is a fact like if you put the best CEO of the world in an industry that’s dying, they’re not gonna do too well.

If you put a dumb ass of a CEO in an industry that’s shooting up, that’s doing well, they’re gonna still produce results because the industry is driving their growth.

So decide your business model based on, whether you wanna build your own business with the time and effort and everything that you invest into your business because business is hard work, right, it’s not easy.

Anybody who says that business is really easy, they’re gonna try and sell you something that’s not gonna work because they’re just selling you the dream and that does not exist.

There is nobody in the world who will be a successful businessman unless, of course, they got it from the family.

There is not a 1st generation entrepreneur that didn’t work their face-off to produce incredible results for themselves and their businesses, right.

So choose your business models wisely. This is what I think is the online income pyramid. I forgot to mention one point, I missed it completely.

In Conclusion, there is an image I’ve created. It’s the pros and cons of being an affiliate, being a product creator or being a traffic agency.

Choose whatever but, I just made this image for quick reference about the pros and cons and once you check it out let me know in the comments section below what you think.

If you would like to know more on ‘How You Can Setup YOUR OWN Traffic Agency’ and ‘Get Paid Upfront’, then watch this video where I show you HOW to do it even if you have no experience and tech skills.

This is Prashant. I’ll talk to you soon. B-Bye.