Andrew Chen published an article titled Creating Value vs. Optimizing Revenue. Here is the link to his article.
http://andrewchenblog.com/2009/06/10/creating-value-versus-optimizing-revenue/
First I want to draw attention to his conclusion: “No matter what your product is, the only way to make money long-term is to make a lot of people happy, and then getting some % of the value you created back, in return. The right strategy to build a long-term sustainable business is to build long-term sustainable value. No amount of viral tricks or optimization will allow you to escape that truth!”
Here are my thoughts resulting from my own experience. Long term sustainable value is an academic dream. Value right now is what is important and if you provide value right now and you continually do that day after day, guess what? Your business ends up providing long term value. When developing the revenue model of your business strategy you must focus on the profit formula that works right now!
The “right now” profit formula delivers value to your target audience at a price that makes you money. If it doesn’t deliver them value and you profit right now you will lose the customer and lose your business. It is that simple.
Andrew goes a bit esoteric for me in his presentation on landing pages, optimization and more. I like to keep things a bit more straight forward. If you are using on line traffic conversion techniques (and I am sure you are) the ultimate optimization is where what you say catches the attention of your target audience and that interest is converted to an action. That acton is simply “I want what you are offering” This applies to the sale of socks or business development consulting services which is one of my offers. There are no exceptions. Ladies and gentlemen business is all about building traffic to your business or landing page and converting that traffic to profitable customers. That’s it.
Sharing with all my readers the energy of peace, happiness and abundance
Steve Pohlit, Expert Business Consulting
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I agree with Steve.
Regards
Rashmi Pant
Steve,
I didn’t read the other article, but I think your post is right on the money. Enrolling people into a grand vision of the future is difficult or impossible without establishing the relationship by proving you can deliver what they want now. You have to meet them on their terms just to get the dialogue started otherwise, they’ll just ignore you.
Jim