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Posts Tagged business model
*This is a way to help both business and generate Sadaqah, inshaAllah.*
As we mentioned earlier about our HalalBuzz promotional service, we would like to explain here more about the 1/3 business model that we want to experiment with, inshaAllah.
The 1/3 model is mentioned in a hadtih where a man heard a voice from the cloud saying irrigate the garden of so and so; he then followed the cloud and saw a man in the garden and asked him what he did to earn this reward (dedicated rain from Allah). He said, whenever I have harvest, I keep a third for my family to eat, I donate a third, and I put back a third back to the garden. So, HalalBuzz wants to experiment donating 1/3 of our revenues, keeping 1/3 for the company, and giving 1/3 for those who spread the buzz.
Some people told us that it’s too much to give away 1/3, but still we want to try it and hope it works, inshaAllah.
So, we want to do this idea with the current buzz campaign (click to see).
Here is how it works:
- This campaign revenue is $117. On top of that, we will give $1 for reach tweet and $1 for reach facebook link, according to the counters on the halalbuzz site. (Up to $1000, inshaAllah).
- We will donate the 1/3 to one of the non-profit projects of our members.
- To help, you can blog, send this link (http://halalbuzz.com/buzz/archives/142) to your friends, or post it on your facebook
- To decide which non-profit project, you vote by leaving a comment. For example, “I just [sent/blogged about this and put the link] and I vote the 1/3 sadaqah to go to such and such school or project.”
- The non-profit that gets most votes, will get the 1/3 of this buzz.
So, what do you think about this idea?
For our HalalBucks readers who want to learn how to start a business, other than the idea and a website, we are putting $1000 as a seed for this campaign. Of course, we have also invested in building a mailing list over the years.
Alhamdulillah, right now HalalBuzz has several projects waiting in line. We haven’t decided to take on all these clients, because our goal inshaAllah to make sure that our clients are fully satisfied and have their goals achieved.
Here is a partial list:
1- http://knowinterest.com Alhamdulillah, they covered their investment within the first day of sending out a mass email.
2- Ad-Duha home school Islamic children courses, who has an interesting story for this HalalBuzz campaign. One of their customer loved their product so much that she paid us to promote them, subhanaAllah.
3- Test preparation service for students 13-17 age
4- Muslim social networking site
5- Women clothing, click only if you are a sister 
Seth Godin tells the story of two lemonade stands using two different business models
Does this story rings a bell when you compare the lemonade stands to Halal/Zabeeha meat stores?
Related Posts:
Muslims & My Store
Free as a Business Model
Freemium
Oct 28
More about free as a business model. Here is a talk by Chris Anderson given at Revenue Bootcamp Conference.
Some Notes:
-Quality is in the eye of beholder.
-There are multiple economies: In the currency economy may be free, but in reputation or time it may not.
-Offer the low cost product as free, and sell the premium one as paid.
-Number of packages: Keep it simple, three options, one for free, and two paid.
-Your free trial should be long enough in time to get users’ engagement. Chris Anderson advise against the common 30-day free trial; He explains that customers won’t commit in using your service when they know they might leave it. Rather, he advised to use limited feature freemium model.
Related Post: Free
Freemium: Free As a Business Model
Speaker: Chris Anderson
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Editor in Chief: Wired Magazine
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Author Of Free: The Future of a Radical Price
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Married, Father of 5
Summary
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Free is the most misunderstood word in English Language
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In other languages has two meanings of free
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Example: Latin: libre and gratis
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Word Free Has Two Meanings in English
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Liberty (Libre)
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Good Thing
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No Price/Cost (Gratis)
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Possibly Good/Possibly Bad
Example of two Free
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- Jello Company
- wanted to get brand out/known
- door to door best option (couldn’t get license too expensive)
- instead of going door to door selling instead offered free jello recipe books
- every recipe required jello ingredient
- created demand/got name out
Internet most competitive field:
- Near Zero Market Production
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In digital economics the price/cost of zero (free) is competed with:
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Example: Music
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Some offer it free
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Some say you cannot compete with free
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Anderson disagrees:
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Example: Microsoft
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Competed with free the longest
- 1970′s Gates Needed to Convince People to Buy Software
- (Software always came free with hardware)
- Convinced People to Buy Software in Order to Get More Software
- 1980′s: Microsoft Competitors Bundled Software with Computers
- Created their own Microsoft Works only saved in their formats
- 1990′s: Had to Deal With Piracy (Especially in China)
- Gates responded mildly, not severely: Said: “China is a developing country, and if they are pirating software, we want them to pirate our software and when they are ready to pay, we hope they can pay for our software.” (paraphrasing).
- Approach helped China to develop faster and helped Microsoft monetize from it.
- Gates responded mildly, not severely: Said: “China is a developing country, and if they are pirating software, we want them to pirate our software and when they are ready to pay, we hope they can pay for our software.” (paraphrasing).
- 2000: Competed with Open Source:
- Sold service contract: “peace of mind”. Someone legally bound to insure interests were protected.
- Microsoft giving free (i.e not getting ruthless about piracy), and also giving enterprise software to start up businesses for free, help both (economy and business) to develop faster and make them ‘hooked’ on their products so they will pay later.
- Free disrupts economies and demonetizes them before monetizing
- Entirely free has limits
- Not the best model
- Not the best model
- Freemium=Mix of free and premium.
- Best model according to Anderson for 21st Century.
- You can’t charge for exclusives that will just be repeated elsewhere
- Don’t charge for the most popular content on your site
- Content behind a pay wall should appeal to niches
- The narrower the niche, the better
- Best model according to Anderson for 21st Century.
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- People will pay to save time
- Video games: pay to play better (i.e. go to another land/level, etc)
- People will pay to lower risk
- People will pay for things they love
- People will pay for status
- People will pay if you make them
- Time’s up, i.e. 30 days then pay (not the best model)
- Your free trial should be long enough to get user’s engagement. Chris Anderson advises against the common 30-day free trial. Customers will not commit in using your service. They will use the trial, even when they know they might leave it
- 5 Seats left (better)
- Offer low cost product as free and premium pay (best)
- Quality in eye of beholder
- Time’s up, i.e. 30 days then pay (not the best model)
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