Richness and Reach – Implications for the Internet Entrepreneur

The concept of richness and reach as illustrated by Evans and Wurster in “Blown to Bits” (1999) has been a major contribution to our understanding of Internet business strategy.

This is the argument in a nutshell:

The economics of information and the economics of physical things differ fundamentally from each other. When a tangible good is sold, the seller does not own it anymore. When an idea, software or a research paper is sold, the seller still possesses it and could possibly sell it once more.

Information can be replicated without any noteworthy cost and can be distributed over the Internet at a very low cost. Other than information, tangible goods are location-based and many times wear out.

In the traditional economics of things products are subject to a universal law – the trade-off between richness and reach. Because information is imbedded in products in a physical mode of delivery, companies can choose to have a very “rich” product or to have a lot of “reach”, i.e. have a wide audience either in terms of geographical reach or breadth of customer target groups. The meaning of “richness” can vary depending on the context; for example a scientific research publication or a highly sophisticated stereo are rich in information. The scientific research paper has a very small audience in a given location while the sophisticated stereo will be very specific and expensive. Hence their “reach” is low.

Along comes the Internet. The more the bundle of tangible product and information becomes dissolvable, the more obsolete becomes the trade-off between richness and reach. A good corporate Internet strategy will hence add both richness and reach to the existing business strategy at the same time.

For digital or fully digitizable products the trade-off between richness and reach does not exist. We can add as much richness as we want and still have global reach. A very “rich” business can be described as a very specific one. In fact, for new web site business on the Internet it is necessary to be very “rich”, i.e. to be very “niche”.

The more specific the theme or topic of a web site, the more targeted will be the visitors that come to the web site from the search engines. On the one hand it will be easier to be on top of the search engines with very “rich” niche content, on the other hand – whatever the revenue model of the web site may be – the conversion rate will be higher as traffic will be targeted. Because “reach” is given on the Internet and only subject to the limitation of language, we have to truly excel in “richness” in our online businesses.

5 Simple Rules To Become A Successful Entrepreneur

If you want to become an entrepreneur, you may want to understand what it really takes to become one. There is no shortcut to success in any field. Many people made a lot of unsuccessful attempts before they gained success as entrepreneurs. So, these entrepreneurs have shared some rules that beginners should follow in order to achieve success. In this article, we are going to discuss 5 of the must-follow rules that you can follow to climb the ladder of success as a business owner.

1. Work smarter, not harder

If you think an entrepreneur is a professional who works day and night, you need to think again. Although hard work is the key to success, the reality is quite different. If you work every minute of the day, no one can guarantee that you will achieve the success you desire.

As a matter of fact, overworking can cause extreme fatigue. As a result, you will make mistakes that can cost you a lot of time and money. Apart from this, you cannot have all the skills required to take care of different aspects of your business. Therefore, you may want to work smarter, not harder. This is how a lot of people have made millions in the here and now.

2. Consult experts and hire professionals

Consulting experts is a great idea if you want to get effective guidelines to run your business affairs. For instance, you can consult Charles J Mosley Jr who is a self-driven goal-oriented entrepreneur. Also, he is the founder of Echelon Productions in Dallas, Texas. His insights can help you with your business matters.

If you are not good at something, you want to hire a professional that can take care of other assignments. This will give you plenty of time to focus on other aspects of your business that you can easily handle. Good entrepreneurs are aware of the importance of delegation.

Although it can be scary to add more employees and team members, you have the option to hire remote workers. They can work from their own offices and homes, and you don’t need to arrange special workplaces for them.

3. Get more done in a cost-effective fashion

Although hiring the services of freelancers may not be an ideal choice for an established business, it can be quite an affordable option for a startup. The reason is that most freelancers are from third world countries where the cost of living is quite low. Therefore, this approach can be quite cost-effective compared to in-house full-time employees.

4. Face your failures

If you want to be a successful entrepreneur, you may want to look for the right people for your business projects. However, this approach cannot guarantee success, which is why you have to be realistic. Sometimes, unforeseeable situations happen that ruin your momentum. In some cases, you have to suffer losses as well. The point is to avoid being afraid of failing. If you be patient and continue to struggle, you will achieve success.

5. Wake up early

You must wake up early every day and work hard until you see the results you want to see. You should keep moving even during difficult times. Life can be broader in your eyes if you understand the simple fact that the things you see around you are made by people who are just like you.

In short, you can follow these simple rules for success. They will help you keep moving and avoid making common mistakes that will slow you down. Hope this helps.

From Entrepreneur to Infopreneur

Where “entrepreneur” is an old word and people are familiar with it well enough, “infopreneur” is quite a new terminology for many. Infopreneur is a two word combination of “entrepreneur” and “information”. Since technological advancement has taken place, it has created opportunities for infopreneurs who sell digital products or informational items on web. In fact, it can be acceptably said that an infopreneur is an entrepreneur who exploits the digital world selling products such as e-books, writing a book, creating websites, updated blogs, they offer webinars, e-courses as well as classes online.

Any entrepreneur can become an infopreneur as it depends on one’s skills. Many infopreneurs make use of their skills while outsourcing those tasks he is not good at.

There are certain differences between entrepreneurs and infopreneurs when it comes to running the business. The opportunities online obviously differs from entrepreneurs who takes risk of ownership of the business through management proficiency. Infopreneurs take maximum advantage of market practices and are considered to be accommodating massive number of customers compared to entrepreneurs. The reason lies in having access to numerous platforms online where infopreneurs meet more customers than in case of brick and mortar businesses run by entrepreneurs.

However, both entrepreneurs and infopreneurs require similar fundamental qualities of risk taking, determination and confidence. Even the goals are similar as that of any other business, which is, generating higher revenues and continuously incorporate novel ideas.

There is a gradual move seen from entrepreneurship to infopreneurship because of less capital required in this domain. Intellectual capital is considered necessary for innovation and creativity to make full use of technological advancements. Time and energy is not wasted to hire employees unless the work is outsourced and one does not have any established contacts. The risk is slightly higher for an infopreneur as it is difficult to grab ideas and make it a successful business initially. Considering other risks such as financial, legal and social risks are least for an infopreneur. Furthermore, infopreneurs have more time liberation and flexibility as compared to entrepreneurs.

An infopreneur usually does the entire work himself starting off with publishing information in to an electronic format. With the help of a service provider who copies information at minimum cost so that the infopreneur can sell the final product to its clients. Infopreneurs are generally good with online marketing and that is the basic reason for their success. They know the fundamentals to generate traffic that would increase their online sales. They are also exceptional copywriters and this is the key skill they use to boost their profits.

In today’s era of technological expansion and progression, knowledge is given the utmost importance due to which infopreneurs are quite in the limelight with fastest speed to success by both sharing information and selling information on the internet. It is indeed a new wave of running a business by matching the technological pace and grabbing new opportunities.