What's your business model?

I don't know much about business, but I'm pretty sure you'll agree that a business model is the cornerstone of any business.

If you don't have one, you're up to your neck in an expensive hobby.

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Image by James Warwood via Flickr

Not everyone needs to understand your business model, but if you don't have one or are just building 'Foursquare, with a bit of Yelp and Pinterest' or even worse, you've been writing off ten of millions of dollars at Twitter for the past 4 years, you've got a juggernaut of an expensive idea, with no idea how to turn a profit.

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In order to sustain itself, your business requires a simple and scalable business model.

What do I mean by scalable?

The ability to enhance the user base / system /  distribution / load by adding new functionality at minimal effort.

Never before have so many people been able to express their unadulterated opinion about everything. Often, they will spend their time taking pot shots at anyone trying to figure out the ROI of social media, or how to monetise Twitter. Don't let this stop you thinking about how you can make money in the emerging (e)conomy.

If you've got something worth paying for, people will be glad to pay!