How to Create a Home-Based Business Without a Product or Service

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Choosing the right model is a crucial moment when starting an online business. Such an imaginary company can sell goods or services or a combination of both. A good example of a commodity (or product-based) store is an e-commerce store that sells clothing or accessories—tangible products that need to be manufactured and shipped to a customer. Examples of a service-oriented model could be coaching, consulting, digital marketing, or a professional services firm offering specialized business, legal, tax, or medical services – a value that is intangible in nature and generally involves the transfer of knowledge or includes expertise.

Service-oriented companies can be further categorized into “low-ticket” or “high-ticket”. The former are those where services have a retail value of $2,000 or less, the latter are those that sell for over $2,000. Starting a high-quality service-oriented business generally comes with a slightly steeper learning curve, as the service provided involves a transfer of expertise, talent, skill, or insight. An entrepreneur who starts one either has a job title and/or has advice and knowledge from experience.

An alternative way to build a high-quality service-oriented business without earning a job title or investing time and money to gain experience in a specific industry is to choose a commission- or referral-based model, which is simple: a commission is paid earned when you broker a deal between a service provider and its customer.

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Let’s go through the steps required to form one:

1. Understanding the model

The appeal of this build is that you don’t have to create your own high-ticket services; Your business is the middle party that connects buyers and sellers. You earn a commission for facilitating a transaction. In one iteration, you must work with high-quality service providers who are willing to pay a commission to introduce them to a client. On the other hand, find the service provider’s ideal customers and facilitate the transaction. Essentially, you are the matchmaker between the buyer and the high-ticket service provider.

2. Finding and partnering with high-ticket seller vendors

To facilitate a transaction between buyer and seller, you must first identify and work with high-quality service providers who would be willing to pay a commission or referral fee for every customer generated through your efforts. Let’s choose an example to better understand how this process works.

• Identify a high-ticket service that has a large market demand and solves a major problem in the market. As an example, we select digital marketing and advertising services for solo and small law firm owners. Such owners are typically not trained in marketing or advertising, but need both strategies to share their expertise with more people and attract more customers.

If you do a Google search for the term “digital marketing services for law firms” you will come across several marketing companies specializing in this niche. You can also search on Facebook or LinkedIn to find many more service providers in this field.

• Visit a service provider’s website to understand what they offer, read testimonials from previous customers, and identify the key decision makers in the business.

• Connect with key decision makers via email, social media or phone and see if they are looking for more customers and are willing to pay a commission for customers you refer. A message along these lines might read: “We are impressed with the services you offer and the testimonials from your customers. We would be happy to recommend other law firms to you for a finder’s fee in the event of a sale. Would you be open to a discussion? this suggestion?”

If the company is on a growth trajectory, the answer will most likely be yes. The next step would be to arrange a call with the decision maker and negotiate a reasonable commission or referral fee (they usually range from 10% to 25% of the transaction fee).

• If negotiations are successful, the final step is to create a simple contract or agreement to set out the terms of the negotiation and formalize the partnership.

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3. Finding and referring the right customers

The goal here is to find the customers who are likely to purchase a service from the service provider you have partnered with.

• Ask yourself a few questions: Does the prospect have the funds to pay for an expensive service? Does this service provider solve a big problem for the business owner? Is it relatively easy to get in touch with this customer?

Let’s stick with the example above. Sole or small law firm owners typically have the resources to pay for digital marketing or advertising services and typically are not formally trained in advertising and marketing. Contacting the decision-maker is usually relatively uncomplicated.

• Connect with solo and small law firm owners via Google Search, Facebook, LinkedIn, YouTube, Instagram or industry-specific platforms. A preliminary review of a potential client’s website would allow you to understand what services the law firm offers, their ideal clients, and even their current social media and digital presence.

Here is an example of a practical message: “We came across your website and love the impact you are making in your community. We work with solo and small law firms looking to expand their digital presence and offer a range of digital marketing services to help you attract more clients online. Would you like to discuss our services over a no-obligation 10-15 minute phone call?”

The key to success is to put yourself in the entrepreneur’s shoes. The better you understand the pain points he or she is facing, the easier it will be to have more focused and conversion-oriented conversations. You can either speak to the owner directly before referring them to the service provider, or host a conference call with the prospective customer and service provider.

• Practice creates masters. The more calls you make and the more emails you send, the more you facilitate those conversations, build trust, and increase your chances of earning referral fees.

4. Absorbing the math required

The final step in this process is to create a calculated roadmap to building this high-quality, referral-based business. For example, if your goal is to make $100,000 a year from this new venture, you need to make about $1,923 a week. If you facilitate a $5,000 sale and earn a 20% commission, that’s $1,000 in revenue. You would need two conversions per week to reach your goal. If you look a little further into your work, it’s reasonable to assume that 20% of those who would agree to a pitch call with you would end up buying a service; You would then have to conduct 10 such phone sessions per week. To dig one level deeper, assume that 20% of people who received an initial outreach message actually booked calls; You would need to send around 50 messages per week, which equates to 10 phone calls, which equates to $2,000 in commissions earned per week. If you plan to work five days a week, you’ll need to send 10 messages a day to reach that goal.

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