Offline Business Models Must Adapt… or Fail

  • Published on : Jun 16 2011

Some people just don’t get it. Online advertising works, and those who realize they need to adapt to these changes are the ones who will succeed. When I visit my local mall, I continually see new stores opening up and going out of business just a few short weeks after. If they don’t go out of business, they are sometimes moving to different and smaller locations in the mall… but still getting the same result.

Two stores in particular that come to my mind are a small funny tshirt store and a replica jewelry stand. First off, the traffic flowing through the mall is dead… and I rarely ever see anyone shopping at these locations. Then you have the monthly rent cost, which we can guess is at least $1,000 to 2,000 a month depending on location. On top of that you have the inventory issues, paying a staff or if you are working the place, the time you are wasting just to break even. I just can’t see how either of these businesses are making money… and usually they aren’t.

What they should be doing is removing their business from the mall and bringing it online, it’s really so much more effective and will completely turn their business around! The problem is most of them simply don’t know how, or take the time to research it.

Years ago I bought a replica jewelry web site that was doing a few hundred dollars a month in sales. After I took it over I had it doing around a thousand a month. Not bad for picking up a site, improving the business model and creating some ad campaigns. Instead of having to hold inventory I also had a drop shipper for the site.

I was selling the same exact stuff (and more) that the kiosk in the mall is selling. The only difference is my product prices were lower, the process was nearly automated, and I didn’t have the insane renting costs they have to deal with each month.

I got focused on other projects and slowly moved away from the jewelry site, though it still gets a lot of volume and has some nice page rankings. I recently decided I would put some time back into the site and get it running again, but this time I would outsource the management of the site.

Since it’s been a while since I last ran the site, I needed to set it up with a new shopping cart system, and I decided to go with Volusion. They are one of the biggest and best names around for setting up an online store, and they have a great staff and can customize an online store for any needs necessary. They also have a cool infographic to help you choose the right shopping cart for moving your business or store online.

In all honestly, I can have the exact same products that a kiosk in a mall is selling within a few days, if not less. Through drop shipping and wholesale distributors online, it’s too cheap and easy to build your own store and business online. Instead of spending the few thousand a month in rent, put that towards an online store, affiliate program and advertising.

The point I’m trying to make is that the offline business world needs to adapt. There is a reason why more and more stores and businesses are going out of business. The days of having to sell products for half of the month just to make a profit are over!

Sure, people will always go to the mall and shop for the experience and buy clothing and food, but when it comes to so many other products, you can get much better discounts and deals online.

Keep the offline business model, but slowly progress and build a presence online. You will soon find that your online business starts to pass your offline model.

Is your business model focused only on offline marketing and transactions? If it is… you are missing out big time, and potentially headed toward failure.

Zac Johnson
My name is Zac Johnson and I have been an online entrepreneur for the past 18 years and blogger since 2007. This is my personal blog and I welcome you to the site. In full disclosure, it is safe to assume that I am benefiting financially or otherwise from everything you click on, read, or look at while on my website.
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