Top 4 Successful Online Businesses (And The 3 Pillars of Revenue)

Starting a Business is a dream for many of us. We often imagine renting a local building, importing some clothes, and selling them to motivated customers. So we get out there and we do it, we open our doors but instead of stampedes of feet, we’re met by gusts of wind and low-profit margins. What went wrong?

the modern world, it makes little sense to start a brick and mortar business when you can start an online business instead. A brick and mortar business will have so many monthly overheads and you will most likely have to operate in debt for your first year. How many shirt sales does it take every month to pay rent, advertising, training, wages, electricity, and other bills?

Alternatively, an online business has very low overheads. You may need to pay for some training, a laptop, an internet connection, an advertising budget, and you might have some hosting fees, and fees for some tools. But you could literally start an online business tomorrow with zero investment as long as you have a computer/phone, an internet connection, and you’re willing to do some work to generate free leads.

So that’s great! Start an Online Business! But what type of Online Business do you start? Are they all the same? Will you start an Amazon or Shopify store? Will you start a dropshipping company? The simple answer is no! You shouldn’t start any of these Online Businesses. These business types can be successful and profitable but they are not the best business models, there are far easier ways.

The perfect business needs to based on Jay Abraham’s 3 Pillars of Revenue. You can save yourself so much hassle by planning your business before you start it and basing it around the 3 Pillars of Revenue. After all, the primary reason we are going into business is to make money isn’t it?

So what are Jay Abraham’s 3 Pillars of Revenue?

- Get more customers

- Do repeat business with those same customers

- Sell higher ticket products to those customers to increase revenue

So how many Pillars does our brick and mortar clothes store have?

- It can always get more customers so that is a YES

- It can do repeat business with those same customers so that is a YES

- It doesn’t have high ticket products to sell those customers so that is a NO

This brick and mortar business should fail our test because firstly it is a brick and mortar business with high overhead and secondly it doesn’t incorporate all 3 Pillars of Revenue. The inability to sell high ticket products significantly reduces the profit potential.

Think of this. You are selling shirts and you make a profit of $10 on each one. Your shop expenses are $1000 per month and you want to pay yourself a wage of $3000. This means you need to make $4000 per month in profit from shirt sales. $4000/$10 = 400. You would have to sell 400 shirts every month to make $4000!

Now let’s imagine we are running an online business with an overhead of $1000 per month because of high advertising costs. And again you want to pay yourself a wage of $3000 so you need to make $4000 profit. But this time you are selling high ticket products that earn you a profit of $1000. $4000/$1000 = 4. You would only have to sell 4 high ticket products to make $4000.

So instead of having to make 400 sales of shirts in a month, you only have to make 4 sales. You are probably thinking that it is much easier to sell shirts than high ticket products. But it isn’t if you are targeting the right people.

So with this in mind, let’s look at the Top 4 Successful Online Businesses that are based on The 3 Pillars of Revenue.

The first business type is Affiliate Marketing. Affiliate Marketers advertise other people’s products and they get paid a commission on any sales made to their referrals. If you find the right product, it should generate sales, repeat sales, and high ticket upsells.

The second business type is Digital Products. There is very little cost in creating a Digital Product because it only needs to be created once and then it can be digitally duplicated again and again. If a Digital Product is created properly it should make sales. It should make resales; for example, recurring payments for membership. And it should make high ticket sales; for example, for one-on-one coaching.

Which leads us to our third successful business type, Coaching and Consulting. As a Coach or Consultant, you can advertise your services. You could offer people one-time coaching to create sales, a membership for live class coaching, and high-ticket one-on-one coaching.

The fourth and final successful business type is Events and Masterminds. You can run small local group events where you sell low price tickets to generate sales. Then you can sell people access to another upcoming workshop as a resell. And then you can sell them a ticket to a Mastermind event in an exotic location as your high-ticket upsell.

So many budding business owners make the mistake of picking the first business type that comes into their mind or they follow in the footsteps of Ma and Pa. If you are considering starting a business I urge you to first think through The 3 Pillars of Revenue and see if this potential business incorporates each of them. If it doesn’t, then it most likely will never be highly profitable.

If you'd like to learn more about setting up an Online Business I recommend checking out This training

Chat soon,

Barry

** This article contains Affiliate links, meaning that at no extra cost to you, I receive a commission if you decide to purchase through a link in this article.