Identify Your Business Model
Institution and Affiliations:
Identify Business Model
During product development, it becomes essential for one to conduct a market research, many business owners may neglect this vital step, and thus their business becomes hard to prosper. It is most entrepreneurs’ nightmare to do market research due to the associated expenses. They tend to avoid extra costs associated with business research.
Although it may be too complicated to justify the benefits of conducting industry research, the benefits are recommendable in the long run (Bryman A., 2015). Business owners may be too excited to launch their product as soon as possible to the market neglecting market research. Failure to conduct industry research can lead to the total death of your product.
The business model is the way by which a company delivers its value to customers, gets them to pay and converts the payments to profit. A company may decide to use different types of models, which may include; direct sales model, advertising model, affiliate model, auction model, franchise model and much more.
Direct sales model will be most vital in our case study; which includes sales which are made via party plans, demonstrating one on one and internet sales. Direct selling model consists of two other business model; single level and multi-level marketing. In single-level marketing, seller benefits through getting products from a parent company and then selling them to customers directly. In multi-level marketing, a direct seller earns more from both sponsoring direct sellers later receiving commissions from the and direct sales to customers.
Direct sales model makes customer relationships stronger, through more interactions with the customers...