What is your business distribution channel?
It seems as if everyone is talking about Starbucks as a model for business these days.
Sometimes it is used as a negative example, as in “Why your business is failing because you're trying to be like Starbucks in ways XYZ.”
And sometimes it is being touted as the example you need to follow in order to be successful in business.
I suppose that is what happens when you build a wildly successful brand, nationwide recognition, and a product with such widespread appeal.
Scrutiny is bound to follow.
But enough of that for now.
I read another article the other day using Starbucks as a case study.
This marketer compared his own business to the Starbucks model.
The business needs a distribution channel – A way to connect with, sell to, and deliver to an interested base of consumers.
This is a guy that I have followed for many years, and whom I respect as a marketer.
He argues that Starbucks is really more about real estate than coffee.
He argued that the coffee shops spread across the nation serve as the distribution channel for the Starbucks business.
Through this distribution channel Starbucks is able to not only sell their high priced coffee, but also various related paraphernalia, and even thousand dollar espresso and latte machines.
The distribution channel is what is most important, because the distribution channel is the true business asset.
He goes on to argue that having a product does not equal having a business.
I have to agree with his point here.
And, unfortunately I see far too many people either already in, or looking to jump into some sort of home based business who believe that if they just have a product to sell then they will be in business.
Nothing could be further from the truth.
Everyone, regardless of the circumstance, already has something to sell.
Just about any idea, service, or physical good can be sold.
But possessing such a thing doesn't create the business.
The business needs a distribution channel – A way to connect with, sell to, and deliver to an interested base of consumers.
Starbucks coffee shops serve as a distribution channel that allows the company to repeatedly sell coffee to their customers day after day.
And what if they want to sell something other than coffee, that people who like coffee might also be interested in?
Then they already have the distribution channel set up to deliver this new good or service to their current customers.
Building and branching on this business – scaling it – becomes relatively easy.
And obviously Starbucks has already done this, offering various baked goods and so many things other than coffee for sale in their stores.
The author of the article went on to describe how he has created a personal distribution channel that has allowed him to sell hundreds of millions of dollars worth of his own products and services over the last few years.
This distribution channel looks a little bit different than Starbucks' – it's an e-mail list.
Through this e-mail lists he's been able to develop a relationship and provide value to a base of consumers for many years.
If he develops a new product or service that he thinks would be of interest to his list, he can quite easily test it out, and even generate nearly instant sales.
You need to begin to think about your business in the same way.
It is the distribution channel that is going to be important to you, that will provide value in the long run and provide you a means to sell your products and/or services.
Without a distribution channel you don't have a real business.
This distribution channel can take many different forms, but some good ones include an e-mail list, an online blog, or a social media platform that has attracted interested and like-minded potential consumers.
Building a true distribution channel takes a lot more time and effort than simply going out to make a sale for a quick buck.
But think about it, which would you rather have?
– A quick sale or two now?
– Or a distribution channel that allows you to make virtually unlimited sales in the future?
If you take the time to set up a proper distribution channel you will never be wanting for people to whom you may sell your products and services.
And if you do a good job of developing a great relationship with your consumers through your distribution channel, like Starbucks, then you will build a base of essentially raving fans who are highly receptive to your offers and buy from you repeatedly.
This is the investment of time, energy, and money that yields the greatest returns.
Take the time to learn how to build a real business, and build it right.
The rewards will be exponential.
And don't let the big terms scare you.
This doesn't need to be something overly complicated or difficult.
Set up an e-mail list with an auto-responder and develop a relationship with that list over time.
Your e-mail list will become your distribution channel.
As long as you treat them right you will always have a business.
If you would like some help with a few practical ways to get started that are fast and simple to implement, then just click here on this link.
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