It is not difficult to start a business online, but what has been observed of late is that the start-ups are unable to sustain in the longer run as they adopt a strategy that is not viable from business point of view.
The start-ups tend to get popular; they offer free services and hope to attract a large number of users. The number of users does show the popularity of any business, but it, in no way, represents the revenue the business is generating.
In reality, these businesses sometimes generate little or no revenue whatsoever, and the start-ups often end up shutting down their respective enterprises. If they do not shut them down, they are unable to match the market pace and being unable to provide regular updates eventually results in reduction in the number of users.
It has been anticipated that if start-ups want to sustain in the longer run, they must start offering their services while charging the users. The free-of-cost services must be replaced by paid services that will be beneficial for both parties. Even if they lose half of their users, they will receive subscription requests from the rest of the users and hence they can manage their budget accordingly.
On the face of it, the move looks like a factor that will discourage users from visiting a website, but in reality it is not the case. With a number of start-ups shifting to providing paid services, it is expected that within the next few years the online market will be occupied by the businesses providing paid services.
In this scenario, one has to focus more on providing quality services. Given the users will one way or the other move to the paid services, the number of users will then depend on the quality of services provided. As far as users are concerned, they are well aware that nothing in the world is free, and even if they show reluctance on the first go, they will be more than happy to receive paid quality services later. The condition, however, stays the same: provide quality services.
Source: markevanstech
Photo: webloggerz
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