July 31, 2021
7 minute reading
Opinions expressed entrepreneur The contributors are their own.
Choosing the right model is a critical moment for starting an online business. This imaginary enterprise can sell goods or services, or a combination of the two. A good example of a commodity (or product-based) business is an e-commerce store that sells clothing or accessories—tangible products that need to be produced and shipped to customers. Examples of service-oriented models might be counseling, consulting, digital marketing, or professional services companies that provide professional business, legal, tax, or medical services-the value provided is intangible in nature and usually involves knowledge or expertise Transfer.
Service-oriented business can be further divided into “low price” or “high price”. The former is a service with a sales value of US$2,000 or less, and the latter is a service with a sales value of more than US$2,000. Starting a high-priced service-oriented business usually involves a slightly steeper learning curve because the services provided involve the transfer of expertise, talents, skills, or insights. Entrepreneurs either have a professional name or have advice and insights gained through experience.
Without gaining a professional title or investing time and money to gain experience in a specific industry, another way to create a service-oriented high-priced business is to adopt a commission or referral-based model. This is simple: commissions are earned under the following circumstances Of you to facilitate transactions between service providers and their customers.
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Let us complete the steps required to form a:
1. Understanding the model
The appeal of this structure is that it does not require you to create your own high-priced services; your business is an intermediary that connects buyers and sellers. You earn commissions by facilitating transactions. In an iteration, you need to work with high-priced service providers who are willing to pay commissions to introduce them to customers. On the other hand, you find the ideal customers of the service provider and facilitate transactions. Essentially, you are the matchmaker between the buyer and the high-priced service provider.
2. Find and cooperate with high-priced sellers and suppliers
In order to facilitate transactions between buyers and sellers, you first need to identify and cooperate with high-priced service providers who are willing to pay commissions or referral fees for each customer generated through your efforts. Let’s take an example to better understand how this process works.
• Identify high-priced services that have a large market demand and solve major market problems. For example, we will choose digital marketing and advertising services for individuals and small law firm owners. These owners usually have no training in marketing or advertising, but these two strategies are needed to share their expertise with more people and gain more customers.
If you search for the phrase “digital marketing services of law firms” on Google, you will come across several marketing companies that specialize in this area. You can also search on Facebook or LinkedIn to find more service providers in this area.
• Visit the service provider’s website to learn about the services they provide, review past customer recommendations, and identify key decision makers for the company.
• Use email, social media, or phone to contact key decision makers to determine if they are looking for more customers and whether they are willing to pay commissions for customers you recommend. Such a message might be: “We are very impressed with the services you provide and the evaluation of the clients. We are happy to recommend more law firms to you in exchange for the referral fee at the time of sale. Would you like to discuss it? This proposal?”
If the company is on a growth track, the answer is likely to be “yes.” The next step is to arrange a conference call with the decision maker and negotiate a reasonable commission or referral fee (they are usually between 10% and 25% of the transaction fee).
• If the negotiation is successful, the final step will be to create a simple contract or agreement to include the negotiation terms and formalize the partnership.
3. Find and recommend suitable customers
The goal here is to find customers who may purchase services from the service providers you work with.
• Ask yourself a few questions: Do potential customers have the resources to pay for high-priced services? Did the service provider solve the main problem for the business owner? Is it relatively easy to get in touch with this customer?
Let’s continue the example above. Individual law firms or small law firms owners usually have the resources to pay for digital marketing or advertising services, and usually have no formal training in advertising and marketing. Getting in touch with decision makers is usually relatively simple.
• Use Google Search, Facebook, LinkedIn, YouTube, Instagram, or industry-specific platforms to contact independent and small law firm owners. An initial review of the potential client’s website will enable you to understand what services the law firm offers, its ideal clients, and even its current social media and digital presence.
This is an example of an easy-to-use message: “We visited your website and like the impact you have in the community. We work with independent and small law firms that want to expand their digital footprint and provide a range of digital marketing services to Help you get more customers online. Are you interested in talking about our services over a 10-15 minute free phone call?”
The key to success is to put yourself in the position of a business owner. The more you understand the pain points he or she is facing, the easier it is to engage in more targeted and conversion-driven conversations. You can talk directly with the owner before introducing them to the service provider, or you can hold conference calls with potential customers and service providers.
• Practice makes perfect. The more calls you make and the more emails you send, the more you can facilitate these conversations, build confidence, and increase your chances of earning referral fees.
4. Absorb the required math
The final step in the process is to create a calculated roadmap to build a business based on high-priced recommendations. For example, if your goal is to earn $100,000 per year in this new job, you will need to earn approximately $1,923 per week. If you make a sale of $5,000 and get a 20% commission, then your income is $1,000. You need to convert twice a week to achieve your goal. If you delve deeper into your work, it is reasonable to assume that 20% of the people who agree to make a sales call with you will eventually buy the service; then you need to have 10 such conference calls a week. Going deeper, suppose that 20% of the people who received the initial outreach message actually booked a phone call; you need to send about 50 messages a week, which is equivalent to 10 calls, which is equivalent to earning $2,000 in commissions per week. If you plan to work five days a week, you need to send 10 messages a day to reach that goal.
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