The world largest technology companies, such as Amazon, Google, and Apple, are typical consumer Internet companies, so we are easily attracted by this B2C model. But if I started from scratch, I would start a B2B company.
B2B customers know their needs, but B2C consumers have no clear needs
Consumers will not tell you directly what they need, so the B2C model is not simple as finding problems directly-solving problems.
Even if you are really good at spotting trends, B2C still has more changes than B2B. This is because whether consumers pay for a product does not depend on whether the product solves a specific problem, nor does it make a rational measurement of the product, and make decisions based on objective analysis of market demand. More often, it depends on interest and fate.
On the contrary, for enterprises, the measurement of the B2B model is much more intuitive. A B2B customer will consider two questions:
Does this product or solution meet my needs?
Is this product or solution worth my payment?
Once the B2B model product or solution is accepted and the demand is solved, it will immediately attract many potential customers.
B2B customers will actually pay
B2C products are more difficult to make profit unless they are very large-because no one wants to pay.
Take Facebook as an example. When asked how much people pay for Facebook, it is only a small part of the actual advertising revenue. Consumers are very price-sensitive, so companies may need to rely on other forms, such as browsing record data, to profit from consumers.
In B2B, we can set a price for your product, and if the customer feels it is worth it, customers will pay immediately. We can continue to make upgrades and improvements after reaching an agreement.
Unlike consumers, business customers make decisions through cost-benefit analysis. If the marginal benefit of the solution is greater than the marginal cost, they will consider adopting it.
