Find a Business Model That Works and Then Scale It
My group at AIG did quite a bit of sponsored marketing in the bank channel. We co-marketed our accident insurance products to customers of the largest banks. We tested quite a bit of opportunities, and the variables in each of those opportunities, and we invested a lot of money in channels and demographics that worked.
During my second year at AIG, a former boss of mine from a college internship turned his family’s mortgage business into a full bank. Not only did I help him acquire the generic domain name he wanted/needed, I also helped him with other domain related things. Since his company was founded in 1947, he had a large customer base, but it wasn’t comparable to any of our bank partners. Despite my efforts to do a marketing test with this bank, my then boss didn’t allow it. Even if the test was wildly successful, it wouldn’t be possible to scale, so it was a waste of time.
As you may have noticed, I have been doing a lot of testing. I’ve been developing geodomain names, directory websites, automated mini sites, self-created mini sites, and everything in between. My goal is to find successful development models that are scalable. When I find something that works, I want to be able to do it over and over again with the same success. Whether a project earns $5/day or $500/day, it doesn’t really matter if you can scale it at a reasonable cost and time expense.
As you continue to develop and test models, I hope you keep this in mind. If you build on successful website, but it takes all of your time and effort, yet you aren’t earning enough to make a living, it’s not going to work. Even if you hire someone at half the cost of your time value and earn a profit, it’s likely that person won’t be as proficient as you.
I think it’s better to have many smaller successful sites that require less time and effort than one large one that doesn’t earn enough to make you a living and can’t be scaled.
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