So, you know you want to start a business. And you have your profitable business idea. But you are wondering how can you put all that knowledge and skill into an offer to make money. You are in the right place.
Service-based businesses are the exchange of time and expertise for money. One draw back for this business model is the limitation of your time. This will affect your ability to grow your business and service your clients. There are only so many hours in the day that you can spend serving clients.
There are a few advantages to a service-based business as well:
- It’s relatively easy to get started: You are selling expertise you already have, making your only real barrier acquiring clients (as opposed to building a product)
- You can work directly with clients: There’s no substitute for the audience knowledge that comes directly from working with clients. Not only can working with clients one-on-one be incredibly rewarding. You get to develop deep insight and understanding of your audience’s pain points.
- You can charge a high hourly rate: By provide services directly to clients, raising your rates is often a key pricing tactic for increasing your revenue. As long as you have a reliable client base, you can often make more per hour than you would while in someone else’s employ.
In an e-commerce business, you sell physical products through an online platform. Limitations may include the following:
Manage sourcing materials
A major benefit of e-commerce is that it offers the ability to more easily acquire repeat customers.
If customers are satisfied and you offer other products they may be interested in. You can use the following strategies to promote other offers that grow your business:
If you sell ebooks, video courses, worksheets, or other similar materials, you’re selling an information product. Limitations are you need to show people that your expertise is worth paying for. With a physical product, it’s relatively easy to see what you get in exchange for your money—with an information product, customers are putting their trust in the creator of the product.
This increased trust means that an information product-based business often requires a bit more of an investment in marketing, especially content marketing.
Advantages are information products scale very easily. For example, once you’ve created an ebook, it doesn’t cost you anything to make another copy of the ebook—but you can sell more copies at the same price.
Information products can be especially appealing for people who currently run service-based businesses—if you can convey your expertise in a product instead of a service, you may be able to scale up your business more easily.
Is selling someone else’s product by referring customers to their online store. You can sell a complimentary product, program to what your niche is that your people would need, but is something you do not offer. So, for example, I do not handle accounting or setting up your books. I would look for a program or course to sell to my people and receive a commission. The limitation is that you should build an audience that fits what you are promoting. The advantages are you do not have to do the heavy lifting of creating the program, setting up the delivery of it as well. You just have to point them to the sales page.
Of course, there are many more ways to make money, but these are the proven and most easy way to start making money in your startup (online) biz.
Let me know in the comments which business model you are using to make money in your business?