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Created by: Aidan Booth and Steve Clayton
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Business Model Comparison

So how does this ‘Parallel Profits’ model stack up against other business models?

Before answering that question, let’s agree on what the key factors are when making this assessment.

For me, there are 6 key factors you should gauge when assessing a business opportunity.

1.Realistic Profit(both short term and longer team, and not a lofty ‘hopeful’ goal, but something realistic that is easily achievable)
2.Time Commitment(how much of your personal time is required to run the operation)
3.Speed of Results
4.Startup Cost
5.Predictability(how predictable are your results?)
6.Business Sale Multiplier(your exit strategy)

Steve and I are personally involved in every single one of the business models listed in the left hand column in the table above, and with Kindle aside, have actually built and continue to run $1,000,000+ business operations for all of these.(in other words, it’s fair to say that we’ve got a VERY good idea about the pros and cons of each of these models).

What are the big takeaways from the above matrix?

Let’s discuss…

Amazon Whitelabel is a good solid business model, but it takes a while to get going, and you need to be selling HUGE volumes to be able to make a decent profit these days.

Affiliate Marketing is a very hands-off model, but can be a slow starter. As a result, it has lower short-term profits. Paid traffic is tough in the affiliate world too, which means a higher reliance on organic rankings, which takes time in competitive markets.

Dropship eCommerce is okay, but paid traffic (normally Facebook) is volatile nowadays. It takes a lot of trial-and-error to find the magic combination that makes the model work.

Kindle is steady. You need to sell a LOT of books to make decent money, but for people willing to toil away at it, it can certainly work (assuming you’re happy with maxing out at lower profits compared to the other models). Once it does work, it’s very hands-off.

Information Products can be very lucrative, but are equally unpredictable. You never really know if an info-product will work until you’ve made it – and by then you could have invested hundreds of hours of time and energy.

Amazon Wholesale is another good option and we have made lots of money with it ourselves. But it has lower profit margins than Amazon White Label, meaning you need to either cycle through inventory at lightning speed OR sell a huge line of products to hit big profits  Amazon Wholesale  businesses also have the worst ‘Business Sale Multiplier’ of all, because you’re selling other people products, not your own brand.

Software As A Service (SAAS) can be a home run, no doubt about that –
but it’s the most expensive model to start and also highly unpredictable, meaning it’s not the right fit for 99% of start-up entrepreneurs.


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