Can social media sites http://www.anthonymora.com“target=”_blank”>develop business models that can generate even a fraction of the billions that Google is racking in?  To this point the answer is a resounding no.  Sites such as Facbook and Twitter are growing at an astounding rate, but are they primarily relationship sites, or will they turn into marketing and business building powerhouses?

There are those who insist that MySpace is yesterday’s news and that Facebook and Twitter are basically fads that will soon be seen, as far as marketing is concerned, as interesting but failed experiments.   According to this reasoning, these sites will remain as vehicles for social interactions, but when it comes to helping build businesses or generating ROI, they will be seen as monumental failures.

Google has more than proven its ROI capabilities.  Adwords alone is reported to generate up to 95% of its revenue stream, which is more like an ocean.  But unlike Google, which serves as a basic (if the term basic can ever be applicable when describing Google) search engine, Facbook, Twitter and other social media sites have markedly different formats and face very different marketing challenges.  Originally developed for friends and acquaintances to interact, the posting and images on social media sites can often be confrontational, controversial and at times obscene.  Therein lies the marketing problem; do companies want to take the risk of having their messages, ads and brand equity positioned next to such possible loose canons?  Does a chain that sells children’s clothing want to risk having its ad positioned next to a sexually explicit post?

Add to that the question of user’s perceptions.  How do those that utilize social media sites feel about ads?  According to studies many find them annoying and intrusive at best.  According to eMarketer, a marketing research firm, social networking revenues rose an extremely modest 4% last year.   Click through rates on Facebook and others sites are minuscule compared to those on Google.  Because of that, many companies choose to have a presence on social media sites, but only a small fraction choose to buy ads.  But in order for social media sites to thrive and come of age as business sites and marketing avenues that can compete with traditional media outlets such as TV and print publications, they need to attract advertising revenue.    To be sure many large corporations are giving social media ads a shot.  But it’s a slow build.  The very quality that makes social media sites so attractive, the free flow of content, is precisely what makes advertisers so very cautious. 

Copyright © Anthony Mora 2010

Anthony Mora began his media career as a freelance journalist for such publications as Us, Rolling Stone and other local and national publications. He served as editor-in-chief of two Los Angeles-based entertainment and lifestyle-oriented publications, and co-founded Phillips & Mora Entertainment, a public relations and personal management company, which ventured into video and film production. In 1990, Anthony formed Anthony Mora Communications, Inc. a Los Angeles-based media relations company that specializes in media placement, image development, and media training. AMC Inc. has placed clients in: Time, Newsweek, 60 Minutes, CNN, The Wall Street Journal, The Oprah Winfrey Show, The New York Times, Los Angeles Times, and other local, national, and international media outlets. Anthony has been featured in: USA Today, Newsweek, The New York Times, The Los Angeles Times, The Wall Street Journal, The BBC, CNN, Entrepreneur, Fox News, MSNBC, and other media. He has written three books. The most recent, \”Spin to Win,\” is a step-by-step guide on how to define goals and utilize the power of the media to achieve success in any field. Practical and user-friendly, \”Spin to Win\” can be utilized by heads of major corporations, small business owners, and entrepreneurs.
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What may be holding you back from reaching 6-figures (or even more) isn’t lack of ambition or desire, it may simply be your business model.

Think of your business model as the design of your various services, info products and programs. Too many entrepreneurs offer a bunch of “stuff” without any real thought as to how each offer will best leverage their time, plus create the maximum amount of revenue.

Naturally, they end up disappointed with the results, which is really a shame because anyone can create a winning 6- and 7-figure business model once they know a few simple tips.

Here are 4 simple tips to ensure your business model doesn’t have you making common blunders that will keep your income from growing.

Tip #1:  Create a Plan for Moving Clients from 1-on-1 to High-End Programs

The blunder most entrepreneurs make is filling their time with lots of 1-on-1 clients (and often at a low price point), which leaves them feeling burned out. Treat your 1-on-1-client time as the most precious service you offer so that you’re only working with a few clients at a high dollar amount. You’ll love your clients more, you’ll make more money and you’ll free up tremendous amounts of your energy.

Tip #2:  Include Life-Long Recurring Revenue in Your Model

It’s exhausting to constantly look for new clients. That’s why savvy entrepreneurs have at least one “continuous” revenue stream in their business model. Ideally, this income stream is one clients never want to give up, giving you consistent monthly income.

There are many creative ways you can design continuous revenue into your business. I recommend looking at what support your clients wish they had for your inspiration.

Tip #3:  Think in Terms of a Series Rather than “One-Off” Programs

Every program, product or service you offer must include an option to upgrade to a next level. Waiting to figure this out will cost you a ton in lost revenue and ramp-up time!

For example, your free teleseminar can roll participants into a paid group or teleseminar program. In that program, upgrade a certain percentage of participants to a private virtual retreat day with you. Your virtual retreat day clients can then upgrade to a longer term coaching program. Never let your relationship with your clients end because you don’t have anything more to offer them.

Tip #4:  If You Can’t Leverage It, Don’t Offer It

Once you shift your mindset to the leveraged business model, you’ll never again be tempted to offer a stand-alone program or service. It just isn’t worth your time and effort! Even something as simple as an ebook should consciously leverage your clients to upgrade to a higher-end service or program.

If Your Cash Flow Stops and Starts, Then Take a Critical Look at Your Business Model For the Solution

Unpredictable, up-and-down cash flow is frustrating to deal with. By redesigning your business model so that every offer flows effortlessly into the next, you’ll not only even out your income, you’ll dramatically increase it as well.

Award winning small business expert Kendall SummerHawk is the “Horse Whisperer for Business.” Kendall delivers simple ways entrepreneurs can brand, package and price their services to quickly move away from “dollars-for-hours work” and create more money, time, and freedom in their businesses. For free articles, free resources and to sign up for her free audio mini-seminar “7 Quick and Simple Tips to Brand, Package and Price Your Services for More Money, Time and Freedom in Your Business” visit www.KendallSummerHawk.com <http://www.KendallSummerHawk.com

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