Does Your Business Model Make Sense?

It’s easy to start an online business these days, and many people jump in without really thinking it through. A friend of mine started a blog 2 years ago. It was a political blog that focused on the Republicans. He spent 3-4 hours a day working on this site, and for awhile he even did Podcasts through Blog Talk Radio – 2 hours each night, Monday through Thursday!

Time and time again, I asked him how he planned on monetizing the site.. He didn’t have an answer!

Finally, he pulled the plug on the site last month. Many people tell you to do what you love, and the money will follow. Fair enough, but this site was doomed from the get-go because he had no clear vision on how to make money from it. He could have probably squeezed a few bucks out from affiliate promotions (eg. Amazon link for Sarah Palin’s book), but not nearly enough money to make up for the amount of time he was investing in the site.

You can go work at WalMart and earn $7/hr, which is more than he would have made from the site.

Moral of the story? Make sure your business model makes sense before investing a ton of time in a new project. You can thank me later. 🙂

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