Brief Summary
Dan Lok discusses the pros and cons of B2B (business-to-business) and B2C (business-to-consumer) models to determine which is better. He suggests that B2C is generally easier to start with due to familiarity with consumer needs, while B2B can be more profitable if you have relevant experience and connections.
- B2C is easier for beginners because consumers understand consumer needs.
- B2B can be more profitable due to businesses having larger budgets.
- Prior experience in a field can make a B2B model more viable.
Dan Lok addresses the question of whether a B2B (business-to-business) or B2C (business-to-consumer) model is better, considering profitability and scalability. He states that the answer depends on individual background, knowledge, and expertise. For most people, starting with a B2C model is generally easier because they are consumers themselves and can understand consumer needs more readily.
He elaborates that if someone is entering an industry or vertical with prior experience, selling a low-ticket e-commerce product that is widely used, it's easier to get started. Advertising can be done through various channels like Facebook, Instagram, Google, Amazon, or YouTube. He suggests using platforms like Kickstarter for crowdfunding to pre-sell products before manufacturing.
Dan Lok explains that a B2B model might be suitable for those with a corporate background and experience in specific industries. For example, someone with years of experience in HR could start their own human resource agency. This is because they already have industry knowledge, connections, and can identify unmet needs in the marketplace.
He concludes that while starting with a B2C model is generally advisable, a B2B model can be very profitable if one is capable. Businesses usually have larger budgets and the ability to pay, although payments may not always be prompt. He recommends dealing with companies that have a good payment record.
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Transcript
Full transcript of “B2B VS B2C - Which Business Model Is Better?”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:00 he's a good question which model is better a b2b model business to business or a b2c model a business to consumer model which model is more profitable which model is more scalable now the answer is it depends it depends on your background it depends on what you know and what expertise or skillset that you have now since I'm addressing to millions of people on YouTube for most people I am generalizing this okay for most people chances are starting with B to C is a little bit easier why because you are consumer I'm a consumer it's easier for you to understand what they want because
0:45 you are one of them chances are if you're going into an industry going to a vertical that you have some experience in you're selling a consumer product it could be an e-commerce product right something that it's low ticket that everybody uses it doesn't cost a lot of money to get started and it doesn't take a lot for you to advertise on on the internet it could be through Facebook it could be through Instagram it could be through Google there's so many channels that you can advertising or even selling it on Amazon or YouTube get in the game to get some traction to make their first few sales even you could consider going to Kickstarter to start a kind of like a crowdfunding campaign right that you could actually pre sell it before you actually make it that's a possibility as
1:31 well it b2c model once you have some experience or if you're coming from a background from corporate that you work for certain companies such as let's say you work in HR human resource for a number of years you have to buckle ation ships and now you want to go out there and branch out and start your own human resource agency to help recruit talent now then a b2b model might work for you why because you have some experience you know some people you have been in that industry for so many years and now maybe you send opportunity you see a gap you see a need that's not being fulfilled in the marketplace and now you say hey I want to go out there and make it happen that's a possibility but for most I would say start with a
2:16 b2c model and if you are capable then a b2b model is very very profitable why because usually you're selling to businesses that's got money they have capital they have a budget and they have the ability to pay you knowing that they don't always pay you on time but that's what big companies do but you're dealing with companies that do pay their bills so that's my recommendation now it's very very nice to see that I'm getting some good questions from you from my fans around the world if you want to ask me some more good questions and that's me good questions please right I would take the time to answer if this is the first time you're watching my video make sure you hit the subscribe button and turn on turn ofin so you don't miss out
3:02 on any future video go ahead do that right now
