Traditional Business Vs E-Commerce Video Lecture | E-Commerce - B Com

I'm moving into a 21st century that
information has become the new currency
we value information more today than we
have just a few years back why is this
important to you well because if you're
in the process of looking about starting
a business and you're looking at the
differences between a traditional
brick-and-mortar business and then eBay
/ internet-based business this can mean
the difference between you having a long
lesson profitable career as an
entrepreneur self-made entrepreneur and
as a disastrous one hi my name is Isaac
and having been on both side of the
fence I can show you and give you a
perfect objective advice and opinion
about both business models in hopes that
it will help you make a more informed
decision for yourself so what we're
going to do in the next few minutes I'm
going to show you in a few slides the
difference between the business models
and what you can expect from both so
let's go ahead let's dive right in
hey guys Isaac here again and in the
next two to three minutes I'm gonna go
over three or four slides that's gonna
put in perspective to you what kind of
business model you're gonna want to go
into now you're probably looking at this
video right now because you're starting
a business and you're not sure for that
you should start a traditional
brick-and-mortar business or go the
ecommerce ebusiness / internet online
business world so luckily for you you're
watching this video right now and this
is gonna give you a pretty good
perspective of what you should expect
because depending on where you put your
money in what type of business model
it's kind of investing in a good neutral
fund or stock that will yield you the
highest rate of return and there are
different various business models I'll
go over three right now and allow you to
make a decision so that you can maximize
your profits because you want to go into
business torn as much money as possible
with a product or service
now as this new slide it's called the
old business model why old because
traditional brick-and-mortar businesses
as you can see from the picture these
types of businesses right now are
closing like crazy especially now that
during the recession according to the
SBA the Small Business Administration 95
percent of businesses will close within
the five years and imagine having to
close after investing $250,000 quarter
of a million dollars you signed on the
dotted line for that bank loan for your
business to fail unfortunately those are
the stats why we're not sure there's a
couple of things that we can go into an
investigate but that's a whole nother
conversation but 250,000 quarter million
dollars just to populate your store sign
on that lease with your deposit and
secure deposits have enough for rent for
the next couple of months have enough
for the payroll for insurances for
employees and of course for marketing
that's another expense not an outline
here thing is with the old business
models that you're also limited to your
local market then the stat that says
that a customer will not drive more than
five miles outside the radius from the
immediate home
to go pursue a product or service so
keep that in mind not to mention that
you would be spending a lot of hours in
that business all that and just for two
to three years later just to break into
profit and earn about 75 to 150 thousand
dollars a year all that crazy work you
should I I just highly recommend that
you go look for a job not to badmouth
the business you always want to be your
own business owner but there's different
ways especially now in the 21st century
that you want to do now the next slide
I'm throwing it out there because this
is a business model that has been around
for many many years it's a legitimate
model it's an alternative for somebody
that's looking for an alternate to the
status quo but this is the multi level
marketing business model if you're not
familiar with it I'm sure you will run
across it especially now doing your
research
this business model is for that small
thinking entrepreneurs it just wants to
kind of dip the small toe in the water
get a little bit wet have a taste of
entrepreneurship it's not really geared
to high caliber of individuals like
yourself the one earn at least quarter
of a million plus per year now these
types of business models
99% failure it for that exact reason
because we all understand two
entrepreneurs understand that it takes
money to make money and unfortunately in
the MLM world it's dear to people that
unfortunately don't have much money to
get started with and they they promise
them of the heavens
now some people do succeed but it's a
very very very small percentage
now the MLM business model is built on
auto-ship type of products products like
lotion potion pills and other things
that actually require inventory as well
products that will require your purchase
on a monthly basis even though you don't
use them just to make sure that they
keep the model alive now these ma dis
products is usually sold at a premium
because they do need to pay certain
levels of compensation in that business
model okay this model relies on you
recruiting a lot of people including
chasing family and friends I'm sure that
has happened to you and if it hasn't you
probably will happen to you sometime in
your lifetime now this type of business
model of course you'll have bad leads
and massive rejections because the way
the business model operates no longer is
effective in the new economy and I'll
talk about the new economy in just a few
moments now what is the new economy this
is the new business model this is the
new way savvy entrepreneurs high-caliber
intelligent entrepreneurs are headed the
information based business now you can
open a store an e-commerce store and
sell physical products and you can open
an e store and oh and sell information
now if you open an ecommerce store you
will probably be avoiding the high cost
of of expensive rents and storage but
you will still have to deal with the
high inventories that you'll have to
carry to keep your business going the
difference between having an information
based business model online is that you
don't have to carry any inventory and
what's so magical about the Information
Age today we value information more than
we have ever before people pay top
dollar to find the information that they
need when they need it at the time that
they need it delivered to their computer
at the time they
requested and people will pay absolute
top dollar for this I'm sure you've
experienced some type of this there's
information about how to become better
in your finances how to become a better
parent spouse how to train your dog you
name it it's out there okay knowing how
to position yourself with the right
information can make you a millionaire
on the internet if you just know how to
do it now compare that to a brick and
mortar business you have very low
startup cost compared to quarter-million
dollars you can set up a good
information based business for a couple
thousand dollars okay that has no
overhead very low overhead all you have
to deal with is having a computer make
sure you have a working computer and a
very good quality internet connection
and a phone again no inventory no
communing no commuting you can work from
wherever you want in the world there's
no geographical restrictions get paid
what you're worth if there's something
beautiful about entrepreneurship is you
commanding what you're worth and by
marketing information on the Internet
you can position yourself as an expert
earning what you're worth how much you
want to earn quarter million dollars
three hundred thousand five hundred
thousand dollar your Plus this is where
you want to be this is where the big
boys play and of course I throw in the
last bullet point no chasing family and
friends just like you would do in
traditional MLM business models just a
final slide right here I call this the
probe versus of traditional business
model is why Pro because again I coach
people to go and start their online
businesses their online information
businesses and become professionals at
this trade okay start their own
businesses as you can see all business
models are built in a pyramid type
business model it all depends with what
type of business you come in you will be
positioned at the top or the lower part
of the pyramid in a corporation of
course you get a good job in a
corporation you're gonna have to invest
in a very expensive degree anywhere from
50 to 100 thousand sometimes even more
just to end up in a cubicle get
underpaid have a boss on top of you all
the time with a lot of office politics
and bureaucracies work long hours having
to deal with that commute to the city
and of course small vacations the old
MLM business one
right in the middle again it's an
alternative but it's not a profitable
alternative you will run into this in
your search for a business 99 percent
failure rate bad leads cold calling
rejections small payouts you don't want
to even go there now brick-and-mortar
business was a little more serious
somebody that wants to break free from
the rat race it's willing to invest
their money where their mouth is and
it's ready to take your life to the next
level
unfortunately breaking more business
you're buying an expensive job you're
looking about 80 hours a week yes you
probably break into the quarter million
dollars but at an expense of your time
you have to deal with employees 95
percent failure rate okay you have a 5%
chance that's pretty pretty okay
assuming you have the right products in
a good value proposition in the market
you have to deal with your inventory
space insurance liabilities and low
profit margins depending on what you're
selling
now the far right you have your pro
online business your top your position
at the top you have information you
don't have to deal with marketing
products you have to worry about
inventory space we're into all those
crazy things outlined in the previous
models okay all you need is a sound
structure online business structure that
will allow your business to run on
autopilot you heard right
autopilot 24 hours a day 7 days a week
customers coming in to your site you
learn how to do this the right way you
don't have to deal with none of that as
you can see at the bottom right arrow
none of the stuff that's out there you
actually start to live life on your
terms where are in the information era
the information is the new currency you
learn how to build an e-commerce
business around this and you are
positioning yourself for success in
living the lifestyle that you've always
dreamed of
hey Isaac again I'm sure you enjoyed
that that presentation I wanted to make
sure that I was very thorough and
covered as much information as possible
I'm sure now your eyes are open to what
it can be possible with having an
e-commerce information based business
now if you want to learn more there's a
link inside at the bottom of the
description box right beneath this video
that will give you some more information
about starting an e-commerce online
business if that's something that you're
looking for I look forward to seeing you
in the next video have a great one