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In today's business podcast, we will brainstorm about online shopping during the holiday season and AOL's major change in their business model.

NEW Business Magazine alert! Internet Retailer is a free magazine that has some great marketing statistics and business news. Today we'll be business podcasting about two news articles that prepare us for the holiday season and explain why AOL has been forced to redesign their business strategy.

Broadband is (hopefully) killing the shopping mall traffic.

People are doing their online shopping before work, after dinner and late at night. Increased broadband access means shopping from home is easier and faster, especially when retailers offer free shipping. Many adults (as opposed to teenagers!) also want to avoid traffic (especially holiday traffic) and having to "go to the mall."

Increased gas costs will actually "fuel" online shopping and holiday sales.

I believe that when people experience long periods of high gas prices, they develop alternative ways to do business and conduct their daily life. They find new ways to accomplish their "to do list" without using their cars. They probably also consolidate all shopping needs into one shopping trip. So even as gas prices drop (it was only $1.99/gallon this week in GA!), these newly acquired shopping habits may stick.

Money not spent on holiday travel (due to threats of terrorism) may result in more money spent on gifts.

On the other hand, if your business is travel, I don't believe you are out of luck. I believe that you should take the attitude of businesses during a recession. Instead of backing off of advertising your travel packages, INCREASE the advertising. Just put together packages that are too good to pass up, in places where people feel comfortable and safe from terrorist attacks.

Question: Is it a day late and a dollar short for AOL?

They came online, they saw the opportunity, they conquered the dial-up market. But along came broadband, and AOL is becoming increasingly obsolete. How do they now survive? (And what do they do with all of those billions of discs they used to mail to everyone and their dog?)

Hmmmm...why sell to many when we can just sell to one?

AOL must have listened to my Brain Storm! Podcast. Otherwise, how would they know to change their model from getting a little bit of money from many customers to getting a lot of money from a few advertisers? <smile> Nonetheless, they are now offering broadband users free access to their site and services, and footing the bill with advertising money.

What business lessons can we learn from this?

I offer several examples of how to apply this week's business strategy lessons. How about cross marketing with people who offer holiday products? Offer one of your white papers or ebooks for free, paying for it with advertising instead? But you'll have to listen to the business podcast to find out more! <smile>

Almost time for the International Podcasting Expo!

Yes, then I'll shut up for a little while...well, until the January 2007 Business Podcasting Expo! $25 for 40+ hours of sessions, plus free software and giveaways! Go to http://www.InternationalPodcastingExpo.com

Lastly, thanks to Sallie Goetsch of Author-Izer.com for promoting Brain Storm! at the Portable Media Expo! See the photos below...<smile>