I’ve had some success with these productized service based businesses but never quite found product / market fit.
Most recently I’ve been focusing on software platforms, such as clickfunnels with my business funnelengine.com, and things started turning for the better. I’ve been promoting their software as an affiliate and doing ok and been able to build funnels for over 20 customers, software with a service style (SwaS) style, and take on my first $20k+ custom sales funnel client.
So far so good.
However building sales funnels is a complex process requiring a lot of different expert skill sets from funnel strategy, web design and development and copywriting along with great customer service and support.
The complexity and customization of building sales funnels means you need to employ experts to fulfil the service which significantly affects margins.
For sure you can use lower skilled and cheaper workers to support higher value activities (as my buddy Mat Newton from the Web Agency podcast calls Leverage Hacking in his great Medium post) but then you’re effectively building a work house pyramid that will grow at an exponential rate, with A players propped up by B players propped up by C players.
I’d rather just employ people in a flat structure through focusing on what’s complicated but not complex (props to a dude in the Dynamite Circle for helping me understand this concept).
I think I’ve got one for you…
Steal This Software as a Service Business Model!
I think one of the best business models for getting money in the door quickly and building an asset is:
ONE OFF SERVICE + SOFWARE RECURRING INCOME (as an affiliate)
You get money up front for fulfilling a service that installs software you get an ongoing affiliate commission for.
I think a great opportunity for this is with Sumo (previously Sumome). Sumo offer suite of apps created by Noah Kagan to get more email subscribers and a whole lot more, to enable online business owners and funnel builders to quickly optimize their site for conversions.
They offer a free plan which is a really easy to sell and when the business you have set up is making more money from your service they will convert onto a paid plan.
I’ve created low priced done for you software as services packages you can steal where you install and setup Sumo apps on customer’s sites. These packages are applicable to many different niches, particularly ecommerce where I previously helped Andrew Youderian from the Ecommerce Fuel Podcast generate 4 figures a month in sales and $5 in revenue for every subscriber on his shopify store.
You can use their apps like List Builder (their exit pop) to enable the collection of emails on a client’s site and then create an autoresponder.
Steal the above feature box and packages and let me know how it goes in the comments!