Devoted to online marketing, viral marketing, and web marketing

Lessons to Learn

Continuing on with the Hotswap story, there are a couple of important things to consider in how they're going about building their business.

What I like the best about it is they're creating more than one stream of income from the start.

They're starting with the used car industry, which is basically a showcase for the core product they're really trying to promote.

What they're doing is using the techology to make money and market at the same time. It's a great strategy.

With the numerous types of products and services that could make great use of the technology, they could enter deals where they could make percentages off of the sales through the licensing of their technology.

Another source of income could be like they're doing now, using the technology in partnership with others to outright sell products.

The point is they could make money in direct sales and through licensing the technology.

I mention this because many times we can miss out on great opporutunities with products or services we offer, that we don't understand can have great benefits to others.

An example would be the airline industry. Some companies in the past developed in-house reservation systems for their own company. While it met their needs, they realized it was also the source of potential income if they licensed it to other airlines.

They didn't create the system thinking to license it, it was created to serve their customers better. But they realized that they could create another stream of income by offering it to their competitors.

Many companies have these secondary sources of income that in many cases can outperform the the product or services they were created to serve.

The thing to learn is to look for existing processes and services within your company that could create additional sources of income. We sometimes miss out on great revenue generators because we don't understand what we've got.

Hotswap is starting off from a solid foundation by creating more than one stream of income from the beginning. It gives them a great chance to root down and grow up over those that may rely on only one way of making money. Those that do this set themselves up for success far greater than those relying on one revenue generator.