Re: What I Learn From Microsoft's Business Model
Do you know Xbox 360?
That's Microsoft's video game console - if you know Playstation from Sony, Xbox 360 is its competitor.
Just do a search on the internet for "Xbox 360 red ring" or "Xbox 360 red light problem" and you'll see millions of searches. It's so famous that there's even a page in Wikipedia just about it! See http://en.wikipedia.org/wiki/Xbox_360_technical_problems and info-products about it at clickbank.com.
And yet Microsoft is still selling its game console despite knowing about this problem (they might have solve it by now).
Imagine this - when they launch, they sold millions of copies and gotten the feedbacks about the problem but they still keep on selling it.
THEY DON'T STOP SELLING DESPITE KNOWING THE PROBLEM.
Honestly, if I sell a million copy of a product that has problems, I'll be stressed. Wouldn't you?
Three business philosophies I've learned from Microsoft's business thinking:
1. You can't wait for everything to be perfect. First, perfection will probably never exist. By the time you got it 'perfect', whatever you're selling might even be already outdated.
Secondly, you got to be fast if you want to be the market leader. Their competitor, Playstation is already the market leader at that time and if they don't act fast, the harder it'll be for them to penetrate in. Besides, the longer they wait, the more profit they're losing.
2. If you have sales, everything else can be handled. Got problem after making a lot of sales? Then invest your profit in customer service. The secret to business success - create positive cashflow and reinvest in your business.
3. The money is in the back-end. Do you think Microsoft just make money from selling the game console? I'm sure you're smarter than that. :-) The games, my friend. BIG BUCKS.
I'm not a game developer so I don't know how much game companies pay for the license to have their game playable with Xbox 360. I have no clue whether it's a $100 or $10,000 but there are thousands of games developed every time. But what if Microsoft takes royalty for each game sold? Some games launches with millions of copies sold overnight – do the math and you'll see that Microsoft makes millions of dollars on passive income.
Let's look at your current business now...
Are you launching your internet business even if it's not perfect?
Are you focusing on sales, the lifeblood of your business or something redundant?
And finally, do you have a back-end offer for your existing products?
If you find any value reading this blog post, do leave your comments or feedbacks.
All the best,
Patric Chan
http://www.youchandoit.com/
===================================
You have the permission to republish this article on your own blog for content as long as none of the article is modified or edited.
===================================
-
That's Microsoft's video game console - if you know Playstation from Sony, Xbox 360 is its competitor.
Just do a search on the internet for "Xbox 360 red ring" or "Xbox 360 red light problem" and you'll see millions of searches. It's so famous that there's even a page in Wikipedia just about it! See http://en.wikipedia.org/wiki/Xbox_360_technical_problems and info-products about it at clickbank.com.
And yet Microsoft is still selling its game console despite knowing about this problem (they might have solve it by now).
Imagine this - when they launch, they sold millions of copies and gotten the feedbacks about the problem but they still keep on selling it.
THEY DON'T STOP SELLING DESPITE KNOWING THE PROBLEM.
Honestly, if I sell a million copy of a product that has problems, I'll be stressed. Wouldn't you?
Three business philosophies I've learned from Microsoft's business thinking:
1. You can't wait for everything to be perfect. First, perfection will probably never exist. By the time you got it 'perfect', whatever you're selling might even be already outdated.
Secondly, you got to be fast if you want to be the market leader. Their competitor, Playstation is already the market leader at that time and if they don't act fast, the harder it'll be for them to penetrate in. Besides, the longer they wait, the more profit they're losing.
2. If you have sales, everything else can be handled. Got problem after making a lot of sales? Then invest your profit in customer service. The secret to business success - create positive cashflow and reinvest in your business.
3. The money is in the back-end. Do you think Microsoft just make money from selling the game console? I'm sure you're smarter than that. :-) The games, my friend. BIG BUCKS.
I'm not a game developer so I don't know how much game companies pay for the license to have their game playable with Xbox 360. I have no clue whether it's a $100 or $10,000 but there are thousands of games developed every time. But what if Microsoft takes royalty for each game sold? Some games launches with millions of copies sold overnight – do the math and you'll see that Microsoft makes millions of dollars on passive income.
Let's look at your current business now...
Are you launching your internet business even if it's not perfect?
Are you focusing on sales, the lifeblood of your business or something redundant?
And finally, do you have a back-end offer for your existing products?
If you find any value reading this blog post, do leave your comments or feedbacks.
All the best,
Patric Chan
http://www.youchandoit.com/
===================================
You have the permission to republish this article on your own blog for content as long as none of the article is modified or edited.
===================================
-
Labels: internet business strategy
posted by Patric Chan at 7:16 AM
15 Comments:
Patric;
You hit the nail on the head. Microsoft has a stable business plan in hand. They make millions every day it seems like.
Oh.......If only I had invested in Microsoft, when they first started. I would be sipping mai-tai in the Caribbean right now.......:)
Patric, you always have good content. It was a pleasure reading the post.
Ron
New Products Just Posted
www.ace-web-marketing.com
Totally agree...without sales, there's nothing you can do about customer service, product improvements, further R&D, or whatever... it'll just be a hard struggle and it'll all end miserable. So the lesson is to sell first, think later...or get someone who can handle the problems to solve them for you.
"You can't wait for everything to be perfect" ??
Yes, this is my problem.
I always wanted to have everything in the perfect situation before i venture into the business.
We always afraid to start a business online, afraid of not perfect, do people really need our product and etc. But in online business only the brave people will make money.
Thanks Patric for the info.
Absolutely Spot On! It's the reason why Microsoft's Service Packs exist.
Good insight Patric
Best
Salim
Hye Patric.
Aqif here.
This article has inspired me a lot in building an internet business..
I think the conclusion is.
"There is no perfection, it is just the result"
:)
Right on Patrick. I never realised that. Thanks for the perspective
Hi Patric,
Great to see another 3 pointers from you. MS is indeed making Big Bucks in games. Just like Apple with their songs.
Anyway, I can make use of your advice here. Thanks.
Hi Patric,
What great insight! Especially for those of us who from time to time experience "paralysis of analysis" which eventually turns into a severe case of procrastination. If we don't have it "exactly" the way we think it should be, we can't move on it...what a waste of time! (confession?)
Lesson? "Give up on the perfection!" Thanks Patric!
Hey guys and gals,
Thanks for leaving your comment. It's great that some of you are aware of your 'perfection' problem and going to work on it. :-)
By the way, I just bought my new XBOX 360 today to play again. Toss the old one away - sometimes, it's easier to 'start afresh' than fixing an existing problem.
Take care,
Patric Chan
www.youcandoit.com
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Hi Patric,
Its taking a while, but my mindset is changing.
I will now have to decide on the "good enough" point to launch a new product while developing my backend products.
I note your new point that throwing away an "unsuccessful" product to start on a fresh idea, may be better business sense than spending time to fix the problem.
Hi Patric,
Thanks for the great insight! This is three very important business point that I am lack of in my own biz. I will reflect on my biz and try to improve based on it.
Thanks.
Hi Patric,
Good point. Nothing in this world is perfect. Only the human creator is.
I shall always keep your insight in mind.
Thanks
abufaris
Hi Patric,
Great Post. Thanks a lot. I have procrastinated in my business, because I wanted to have everything perfect before I launch it and start advertising for it.
I now know that I have to start advertising it right away even though I do not have everything perfect.
You always give great advice. Thanks.
Diana
We can't wait for everything to be perfect before we market or sell it -- for any products, because the result is unknown until we move it to the market. I totally agree with it. Thanks!
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