Have you ever wondered why Elon Musk and Mark Zuckerberg have grown crazy rich? A critical look at their business model could give you a big hint into the possible answer.
Facebook connects people, Amazon connects merchants and buyers, Airbnb connects landlords to people looking for a space to lay their heads. These people don’t basically create products, they connect people and are making serious money doing so.
Taking this position, you would see why this model is really amazing to replicate, and how beneficial it is in this article. Read on!
Mark Zuckerberg created a tool that could very well bring old school mates, family overseas, friends, and more together. And it just doesn’t end in being social but could also help connect clients and customers, help a business build its credibility, brand, and reputation, too.
How does that make money for him? It’s simple. Content is really important for many internet businesses, that is what engages people. He simply created a platform where people can create content for him while entertaining or educating themselves doing so. Gets paid hefty sums of money advertising other people’s products or businesses, and boom, money is coming in.
Amazon
Well, these guys are just real giants when it comes to e-Commerce with a very smart model of making serious money. They don’t really create products to sell but make their money by connecting merchants (people interested in selling their products) to buyers (people looking to buy).
If you’ve ever seen how stressful it can be to look for a buyer when you have something to sell? Well, Amazon is so smart that they don’t do the marketing. Affiliate marketers hoping to earn an income could also market that product and get paid a commission themselves – Now that’s genius!
So, basically, Amazon says, “Hey, come here and sell your stuff on my website while I get paid a percentage of your sales.” And then Amazon tells Affiliate marketers, “Hey, looking to earn an income referring people to buy from us? Why not join our program?”
Now, that’s something.
Airbnb
If you have never heard about Airbnb, it is an online marketplace that helps people find spare rooms or guest rooms rented by people interested or having space. They don’t own houses, but just connect landlords and people looking to rent a space.
All Airbnb gets for every booking from hosts is 3%, which is actually fair, and also 6% and 12% from guests. If you think that percentage is small, multiply that with thousands or hundreds of thousands of bookings and do the math.
These businesses created platforms, not just a business. Because according to Jack Ma, “Create a platform, not a business. A business is what you create that fetches income or makes you feel good. But a platform is what helps other people achieve their goals, while you find fulfillment doing that also.”
Aim to create a platform today, and help others succeed, then realize more success than you ever imagined.
