Your business and reputation in the future may depend on actions you take today. Decisions you make today may adversely affect your business 2 or even 3 years down the road. The rest of this article will illustrate what I mean.
An internet marketer made a decision a few years ago to create multimedia ebooks that he sold with master resale rights. Each ebook had links in them where the end user had to download the sales page and either download the videos or watch the videos online from his server. Every ebook has anywhere from 7-18 videos.
All of his ebooks have been of high quality and have proven to be very popular with both marketers wishing to profit from his work and end users wishing to learn from the products being sold.
This business model made this author well known and respected because of the quality of his products.
Can you see any problem with the above business model?
The problem is that the more successful he became the bigger the strain became on his server with no additional revenue. As long as his product included resale rights, he faced an ever increasing strain on bandwidth with nothing more than an email address at most to show for it. Can you imagine the server strain created from several thousand ebooks in circulation with multiple videos in each ebook?
This author/marketer has finally reached his breaking point. After letting this business model run for 2-3 years and grow into an uncontrollable giant, he has made the decision to revoke ALL master resale rights licenses at the end of 2007. he has also decided that the access to the videos will be terminated at that time too.
This means all of his ebooks will become electronic trash at the end of this year unless the owner of the book chooses to download the videos to their personal computer.
Because of a business decision made 2-3 years ago, this marketer has to change his business practice to survive.
This decision is making a LOT of other marketers and consumers angry.
Because of the decisions the above marketer made 2-3 years ago, he has to change his business model midstream and he’s alienating both consumers and marketers in the process. This anger will result in a loss of trust and probably a loss of business at least in the short term. I’m guessing he will recover because his product is that good but he’ll basically be starting his new business model from scratch.
Take the time to do the 'what if' scenarios so you can plan for success because decisions made now can adversely affect you in the future. Do you want to spend years building up your business then have to change it and throw away your reputation, integrity and customer base? If the answer is no, take the time to plan for success.
Last 5 posts in Business Success
- 3 Types Of Additional Income Streams For Local Business - June 17th, 2017
- Does Your Local Business Have A Residual Income Option? - June 3rd, 2017
- 5 Mistakes Local Business Startups Make - December 31st, 2016
- How Reputation Marketing Can Help Your Local Business - September 24th, 2016
- 3 Mistakes Consultants Make With Business Owners - September 10th, 2016