Scalability
Thu, January 21, 2010 at 6:34 PM in Business Models, My Favorite Posts 
Products scale quite nicely than you.
Services? Not so much.
While I'm beating the bushes 24/7 at Sendside, I've got some systems in place around launching products that's working quite well, and it's all built on the premise that incremental value is scalable only around products, not services.
I think I know something about this. After all, I was a painter for about 20 years. Artists have perhaps the poorest business model there is. Painting is a huge time investment and you'll need some serious inventory with no assurance that what you're doing will sell. At least to start.
One of my epiphanies came when I entered the limited edition print market. Suddenly I was painting a single painting, but selling it thousands of times. (Incedentally this does drive up the price of the original which is also nice.)
But before I wax too philosophic, let me come back to my point. Products scale. So my crack team organized under my medical spa site at Medical Spa MD is busy creating value by leveraging our expertise to take specific products to market.
Last year we launched a new site that ships wholesale Botox worldwide. In the next month we're launching three new services: Teeth whitening, medical outsourcing, and do it yourself SEO. There are about eight other products, services, and partherships lined up behind those. And that's just for Medical Spa MD.
I've got designs on the artist, painter, headshot photography and actor markets in NY and LA since I've got some experience there as well. While I'm not quite at the four-hour work week with these sidelines, I'm probably close to eight... and I work on weekends.
Of course I couldn't do this myself. I have a team that reside in various locations around the world; California, New York, India... And they do the heavy lifting. I'm just around to provide direction, and to pay the bills. Fortunately, with scale comes profitability.
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