Sales Archives

The Bait-and-Hook Business Model: Explained

What is the bait-and-hook business model? How do bait-and-hook businesses make a profit? The bait-and-hook business model is where a business sells the main product (for example, coffee machine or printer) at a low cost in order to generate profit by selling complementary products/refills/top-ups (for example, coffee capsules, printer ink) at a high price. In effect, businesses choose to initially make a loss in the hope of making a future profit from ongoing purchases. In this article, we’ll take a look at the concept behind bait-and-hook business models and how they generate revenue.

The Diffusion of Innovation Model (aka TALC) Explained

What is the Diffusion of Innovation (aka TALC) model? How many categories of customers are there in the TALC framework? The Diffusion of Innovation model (also known as the Technology Adoption Life Cycle) was developed by Beal and Bohlen, two agricultural extension agents working for Iowa State College in the 1950s. They developed the model based on studies of when farmers started using new agricultural innovations, such as fertilizer and hybrid seed corn. Others soon generalized the model to technological innovations outside of agriculture. In this article, we’ll take a look at how the Diffusion of Innovation Model explains the

What Is the Open Business Model?

What is the open business model? How do companies with open business models create value for their customers? An open business model is where a business creates value through collaboration with external partners. There are two main ways to do that: 1) integrate their internal resources with the partner, or 2) supply their resources for a fee. We’ll break down both of these principles below.

How to Create Customer Profiles for Your Business

What is a customer profile? What characteristics does a target customer profile typically include? A “customer profile” is simply a description of an archetypical target customer. A customer profile should include characteristics like age, job title, industry, gender, race, and interests—especially as their interests relate to your product. Here are some things to consider as you create customer profiles for your business.

The Advertising Revenue Model Explained (+Examples)

What is the advertising revenue model? How do digital businesses make profits from advertising? The advertising business model is where a business makes revenue from selling advertising space to other businesses. This model is particularly common amongst digital platforms and popular websites because this model requires high traffic volume to generate meaningful revenue. In this article, we’ll take a look at the advertising revenue model and how it generates revenue.

The Case Against Product Line Extensions

Is it ever a good idea to do a product line extension? What are the advantages and drawbacks? In Positioning, Al Ries and Jack Trout outline the conditions that should be met before you do a line extension. They also explain why market leaders generally avoid line extensions. Keep reading to learn about the disadvantages of product line extensions and when it’s advisable to go in that direction.

How to Optimize Sales Time Management

What role does time management play in sales? What are some things you can do to cut back on unnecessary activities that distract you from what matters most—driving sales? The first step to building a high-performing sales operation is effective time management. Implementing a time management system in your sales activities will enable you to extract the most productivity and value from your days. Here are some tips on cut back on unnecessary activities so you could spend that time driving your business’s sales.

How to Name a Product to Position It for Success

Do you know how to name a product? Why is this your most important marketing decision? In Positioning, Al Ries and Jack Trout argue that selecting a product name that supports your claims is crucial to positioning your product in the market. They explain why you shouldn’t underestimate the power of a name and provide guidance on how to (and how not to) name a product. Continue reading to learn how to name a product to position it for success.

The Ultimate Sales Machine—Book Overview

What is The Ultimate Sales Machine about? What is the secret to sales success, according to its author Chet Holmes? In The Ultimate Sales Machine, Chet Holmes argues that the secret to sales success is relentless discipline, determination, and above all, repetition of a few steps. For Holmes, sales mastery is intensive, not extensive—it’s about being an unmatched expert in a relative handful of things, not being adequate or average at many things. This article takes you through Holmes’s key ideas about becoming the ultimate sales machine.

Mike Weinberg: Sales Management. Simplified.

Is Mike Weinberg’s Sales Management. Simplified. worth reading? What is the key to sales success? In Sales Management. Simplified., Mike Weinberg discusses how to successfully manage a sales team, including setting goals that push people to excel, using shadowing to identify team weaknesses, and training your people to make good sales calls. He also discusses a factor that he sees as crucial to managerial effectiveness: managing your time wisely. Below is a brief overview of the key points.