Sales Archives

Crossing the Chasm: Book Overview (Geoffrey Moore)

What is Geoffrey Moore’s book Crossing the Chasm about? How does remaining in the chasm between the early market and the mainstream market sabotage your business? In his book Crossing the Chasm, marketing consultant Geoffrey Moore explains why most high-tech products stagnate and die out, never reaching the stage of mass adoption. His explanation is grounded in the “Technology Adoption Life Cycle” (TALC), which predicts how innovations are adopted by different segments of society as a technology matures. Below is a brief overview of Crossing the Chasm by Geoffrey Moore.

How Does the Freemium Business Model Make Money?

What is the freemium business model? How do freemium products generate revenue? The freemium business model is where a business gives away a limited suite of services for free and charge for a premium or additional features. The revenue from paying customers supports the costs incurred by the free users. In this article, we’ll take a look at the concept behind the freemium business model and explain the difference between freemium and free trial.

5 Types of Customer Groups & How to Target Them

Why is it important to define the customer groups your business intends to target? What are the different types of customer groups? It’s important to identify and validate your customer groups before you develop your business model. There are five main types of customer groups: 1) mass market, 2) niche market, 3) subdivided market, 4) diversified market, and 5) multi-sided market. We’ll take a look at how to target each of these groups below.

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.