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A Tale Of Two Business Models

Posted July 4th, 2009. Filed under Business Media

The Billboard Model relies on shock and awe to impart messages to consumers via peripheral inputs. The need to drive insane amounts of traffic trumps introspection, innovation, and increased quality. Income is derived from third parties who have little or no contact with consumers. In crisis, the billboard model’s only solution is to scream louder, hire exotic dancers, and give away more swag.

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The Tollbooth Model operates on the understanding that consumers will gladly exchange their money for a useful good or service offered at a fair price. Competition drives innovation, customer service, and an increase in quality. Optimally, consumers are in near-direct communication with the supplier of the good/service provided. In crisis, prices can be raised to counteract lower volume.

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It’s that simple. Don’t tear yourself up with long discussions touting the benefits of producing and broadcasting mediocrity for free.

Produce something of value. Invest in reality.

Tollbooths are where it’s at.

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photos: ray moore, bill jacobus
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4 Responses so far

  1. There's a lot of truth to the fact people are willing to pay a reasonable amount for something of value, and I think the toll booth model is the right approach for sustained connection. But the billboard model has been with us for a long time, so, sad to say, it must be a worthwhile business model for at least getting the initial knowledge of the product or service to the consumer. I do tend to doubt it's long term value on holding on to customer loyalty though. Good comparison, Seth.

  2. Maybe off subject, but I found it interesting that the next post after yours in my RSS feed was about this billboard – http://bit.ly/14Jrol Seems to fit into that shock and awe that you spoke about but does it really create safer drivers in the long run?

  3. sethsimonds says:

    Something being around for a long time is not grounds for it to continue. For initial buzz? Perhaps. Does buzz build a customer base? Maybe.

    Create something useful and compelling. Share it with a few people who also believe in it. They will do the same. We are connected enough to spread things person to person…the exact thing that most advertising seeks to emulate.

    Edward Boches would be a good ear to pull on this one. He's actually in advertising.

  4. sethsimonds says:

    No. But check out that the advertising agency that produced the signs claims that there hasn't been an accident since the signs were put up.

    Maybe because it hasn't really be raining much and news of 15 deaths gets a message out there of its own?

    Who knows. I love that they're claiming credit for reduced deaths though. Bunchanuts. =)

    If you ever get a chance to hang out with traffic safety gurus, take it. They compress huge amounts of data and can explain the aspects of intersection design that will make the difference between fender benders and casualties. Actually fascinating stuff…to me.