studio non troppo : mindful design : facilitation

Photo: kevindooley

As promised in the last post, today I’m going to present a high-altitude view of one type of internet information business. I’ll pick one of the possible business models (the What), I’ll describe what’s appealing about working this way (the Why), and I’ll lay out the three components that are necessary for the business to succeed (the How).

It’s a high-altitude view today because there are many, many details in even a straightforward business model like this one, and a holistic overview will help you decide which aspects you’d like to explore and in what order.

The WHAT

I’ll begin by presenting the components of one particular internet business model: creating and selling digital-delivery products, such as downloadable pdf files or videos (think YouTube). There are many other business models available, ranging from blogging to affiliate marketing, and many of the technologies and approaches relevant to this model can be directly applied to other models. This ability to recycle and repurpose your knowledge and know-how is one of the benefits of developing your information entrepreneur skillset.

The WHY

First, here are some of the guiding principles that might lead you to consider this kind of business. This model might be good for you, if:

1. You want to devote only a few hours per week to the tasks of running a business. You’d rather spend the majority of your time doing other things, such as starting new projects, creating content, or doing something completely non-work-related.
2. You like the idea of your product being out there on its own, marketing itself, sending you some income whether you’re paying attention to it or not.
3. You’re not interested in leaving your day job (right now, at least), but you wouldn’t mind some extra income each month.

Downloadable products can be sold to internet customers (almost) anywhere, and there is very low overhead and little maintenance in selling this way.  It’s exciting to imagine being able to connect people who really need particular, specfic information, know-how, and experience with the people who have that information, know-how, and experience.  The goal is mutual benefit: value for the customer, compensation for the provider, and good will generated between them.

OK, time for a little thought experiment.

Imagine a downloadable, pdf-format text-and-images resource, such as a how-to manual for Vespa owners who want to repaint their scooter.

Photo: antmoose

Now consider some of the ramifications:

• The manual might sell online for $20. If 10 people (worldwide!) purchase the manual each month… [math left as an exercise for the reader].
• It can be delivered (i.e. downloaded) without paying for postage.
• You don’t need a warehouse or even a garage for inventory of your product. The manual is a file on a computer server.
• Customers don’t have to wait to get it delivered in the mail.  They can download it and read it right away or print it out to read wherever they’d like.
• If you want to change something in the manual, you don’t have to reprint it; you just change the file, and the new version is ready immediately.  There’s no necessary, intrinsic cost to change the product.

The HOW

Here are the components you would need to make this work (high-altitude overview only, today):

1. The product itself
2. A website set up to deliver the product and perform financial transactions (accepting credit card payments, handling refund requests, crediting your bank account)
3. A marketing system that helps potential customers find your site

Depending on your personality and your skills and inclinations, you may feel that at least one of these three components seems extraordinarily difficult. I’m here to tell you that all three components are really, truly manageable, and you don’t have to be a Rhodes-scholar-who-spends-all-her-free-time-between-high-powered-sales-meetings-in-the-computer-lab to get them all to work together.

Does this sound doable? Do you run a business like this? If this sounds reasonable and intriguing, but you’re not doing it, why not? Where are you stuck? I welcome your feedback and questions.