Traditional vs Modern (leveraged) business
Since the launch of internet, doing business has changed drastically. With every year that passes by, working within an e-business becomes easier and more cost effective than a traditional way of doing business and there are various factors to that.
Traditional businesses focus on a local audience by constructing a store or providing a service and targeting local audience, it is very limited. As opposed to a leveraged business where the target market is not necessarily specific, the business can be reached by anyone who has a computer in any part of the world, provided the products or services are available in that country or market.
Another great advantage of an e-business over traditional business, is that it can easily find and market to a specific niche or segment, which results in a higher conversion of sales.
Traditional businesses are forced to choose correct locations to attract their desired customer base.
The most important difference is the up-front costs, online business or leveraged business has very little or no cost to start up, but traditional business requires a strong capital to cover all the costs such as rent, utility, manufacturing, maintenance etc.
In a traditional business there isn’t much room for customization. You can only customize your store, marketing and a product to a small extent. But with e-business you can do massive customization, change your product, market, target market, theme, depending on success of your business.
Another significant difference is the convenience of shopping from the comfort of your home, people are getting lazy and they would love to just go online do their purchases and log out!
Furthermore, a very significant element to Leveraged Business in relation to a Network Marketing model, is the building of teams of distributors and customers who purchase products on an ongoing basis. Along with distributors developing their own businesses and generating further distributors and customers etc.
In order to fully utilise this system, the skills of not only recruiting and sharing information by yourself is necessary, but to provide leadership, coaching and duplication of process,
so that those within your organisation are given able to fully develop their skills and businesses also.