Online service providers can often increase their revenue by increasing their billable hours if they have enough clients. For many, however, that is not possible. They are already maxed out on their billable hours and cannot increase them. Sadly, this also means that their revenue has flatlined. I believe you still have options. That’s why I’d like to show you how to multiply your online service revenue.
This article will discuss:
- Introduction to this Article
- 2 Myths About Business Growth
- Reviewing All Marketing Funnels
- Tightening Up
- 5 Steps
- 1. Add Subcontractors
- 2. Add Another Service
- 3. Do a Webinar
- 4. Offer a Membership or Course
- 5. Create Digital Products
2 Myths About Business Growth
Online service providers, generally, will keep onboarding clients as long as they can. They think this is business growth. The truth is that this is both true and false. There are two myths I’ve noticed about business growth in this industry.
2 Myths:
- Business growth is always good
- Business growth is always about taking on more clients
First Myth:
The first myth is that business growth is always good. You can grow too fast and lose sight of your business goals.
Yes, business growth can be good in certain circumstances. Always remember to keep your overall goals in front of you. And remember, sometimes too fast is not good.
When is growth good?
Growth can be good:
- IF you are prepared for it
- IF have a plan mapped out for it
Otherwise, you could be headed down a path that leads you to working harder and putting in more hours, but it does not mean living your best life. This is a rushed life when business growth isn’t planned. It can leave you feeling as if you are not providing your best quality services either.
Second Myth:
The second myth is continuing to take on clients while they are knocking on your door, whether they are a good fit or not. It is a good idea to vet your clients first. Preparing and having questions ready to ask clients prior to talking with them is very helpful.
“Discerning questions – create a list of questions for EACH SERVICE or Package You Offer.”
fearless business boss blog
The truth is that attracting clients is a good thing because it means your marketing funnels are working well. It also means, however, that you are backing yourself into a corner if you keep taking them on when you already feel busy.
Once in that corner, you will be stressed, maxed out, and unable to breathe because you will have tons of work and you know you need help, but you don’t have time to stop to onboard them.
The other thing that happens, once you are in that corner, is that your revenue flatlines, and you have no way to go up from there until you add at least one subcontractor. The only thing you can do to increase your revenue at that point is to increase your pricing. Then you are stuck here year after year. You should take this action prior to being maxed out with clients.
Don’t end up at this point.
Review All Of Your Current Marketing Funnels
One of the things you should do before you hit that maxed-out point is to do a review of all of your systems and processes, your marketing funnels, and take a good look at all of your analytics.
This should give you a fairly good idea of how your business is working. From processes to marketing, through to how you are attracting clients. This will be important later.
Tighten Up Where You Can
After you’ve analyzed your business and seen the finances, the real finances, you should try to tighten it up where you can. Get rid of any unnecessary expenses. This will keep your company lean as you move forward to take the next steps.
Now that you’ve tackled the initial steps, you can work on these five steps to help you move from maxed out and stuck to moving freely into your company’s growth. And you are doing it by thinking like a real CEO.
5 Steps to Help You Multiply Your Service-Based Business
1. Add Subcontractors
The very first step toward true business growth is to onboard a subcontractor. Initially, add one subcontractor; then bring on more as needed.
If you have clients and a number waiting to onboard, this could be an immediate help for you. It will get you relief by adding help. It will also increase your revenue.
So, by doing this, you may immediately increase your revenue, as you add clients from your wait list.
If you have enough clients to match your current client numbers, you should be able to double your revenue.
This action is often best to take before maxing out on clients.
Example:
It is simple to see that by offering your one service- let’s say email marketing, for this example.
If your package for this service offering is $500/month and you have 2 clients on the wait list that want to begin, then you immediately add $12,000 each year to revenue*. If, however, you currently have 5 clients and 4-5 on the waiting list to begin immediately, then (if all onboard with you) you will double your revenue*!
*This is Full Revenue, but you need to take out expenses as well, because you will need to pay your subcontractor. In theory, with this example, you may need to add 7-10 additional clients to double the net revenue. Please keep this in mind as you bring on your subcontractor.
So, if you have potential clients that you cannot onboard because you are maxed out, then you are missing additional revenue to add to your business.
Looking for Subcontractors:
Look for subcontractors (subs) with excellent character rather than focusing on skills when you hire them. Skills can be taught, but character cannot usually be changed (at this point in their life).
Yes, skills are still important when you look at a subcontractor, but above that should be his/her character.
You will also want to make sure you connect and that they will work well with your team.
Read More About Hiring Subcontractors.
Paying Your Subcontractors
Often my clients get tripped up on what to pay their subcontractor when they start. The best thing to do, at first, is to negotiate an hourly pay rate with a minimum number of hours per month. Let them know you plan to add more work for them as they prove themselves.
You will need to keep an eye on their time being billed to you. You may get them to upload contacts to the client’s software. This may take you five minutes, but follow up with your subcontractor to find that they have 2 hours billed for it.
Communicate Your Expectations
Discuss your expectations and ask why it took so long for this task. Perhaps they simply forgot to stop the timer when they finished. This is why, however, it is important to be open in communicating. And if it really took this long because she didn’t know the system and it was more complex than most, you can discuss this with her.
Keep communications open at all times, even when upset.
The goal in trying small tasks and seeing the hours is to get a feel for how she works and budgets time while on your clock. If you find she works well with you and her time is well spent, so you want her to work with this client on a regular basis, then you want to negotiate a rate based on a percentage of the whole package pricing.
Most freelancers or virtual professionals will pay subcontractors between 40% and 60%. Some even pay as high as 70%-75%. Decide how much you make after taking out all expenses on this client, and then decide what percentage you want to pay them.
For our $500/month+ example, if you paid your subcontractor 50%, then you will net $250/month on this client (if no other expenses need to be deducted). You will manage the subcontractor and still may be the face of your company by meeting your client once a month for strategy. Yet you will no longer have to do any tasks related to this one client, and you still make $250 each month for this client.
Now, consider how many other subcontractors you may want to add, as long as you are also attracting clients on a consistent basis. Then imagine how much you can multiply your revenue!
2. Add Another Service Offering
Another way to multiply your revenue is to add another service offering to your business. This is a similar concept to multiplying by adding subcontractors, but you will use that in conjunction with adding one more service to offer clients.
If your clients have requested additional services that you don’t provide at this time, consider how you may be able to provide it for them.
The first step before adding anything should be market & competitive research. Then, if you want to try to move forward, look for a subcontractor who can do the task.
You can even offer it to current clients first and then to those outside the company.
Example:
Let’s say you want to add social media management as the new service offering. You have set up 3 packages priced at $500, $750, $1199 each month.
If a new client onboards for the $500/month+ package. A current client wants to sign up for the $1,199/month+ package. And you have another current client who would like to sign up for $750/month+ package.
You immediately (as soon as this package is offered) increased your monthly revenue by $2,499. This is a bump of $29,388 each year in revenue (before expenses).
As you can tell by these examples, you are really losing money by not adding a subcontractor to your team.
3. Do A Webinar or Online Event
This next revenue multiplication is on the lower side and more about building your brand awareness and getting your brand out there to be recognized more.
Doing a webinar each month can help your brand’s recognition over time. If done properly, though, it can also multiply revenue.
It’s all about preparation and your sales page write-up. If you are not great at writing your copy, this is a good time to outsource for the first one at least. Then you can usually follow a template with the next ones.
Preparing the right offer at the end of the webinar or presentation is important. Showing low-hanging fruit to get people to purchase from you helps. Then you can attempt an upsell after that point if you choose. They are also added to your email system and the funnels you have set up.
If they purchase, they also build more trust for you. If you provide quality work with the low-hanging fruit and it increases their trust in you, then they are more likely to purchase from you in the future.
4. Create A Membership or Course Option
Creating a membership or course option can also multiply your revenue. These are great options to increase your revenue.
Many coaches have gone to memberships or course offerings. If you have become an expert at email marketing, for example, you have knowledge that could be shared with others who want to become email marketers.
This is very valuable. You can sell your course or membership and teach your members or students about how to become email marketers.
It could be a self-paced course or a membership where you post regularly and then get on a live call a couple of times a month. There are many options for both of these. It is only limited by your imagination.
Try doing a brainstorming session about your knowledge and what you would want to share with another person who wants to do similar work. Before you know it, that brainstorming can turn into an outline, and you’re on your way to completing it.
5. Create A Digital Product (Printable) To Sell
The last thing I want to discuss is creating digital products (printables) to sell. Many virtual professionals or freelancers try this in addition to the services they provide.
Today, it is easier than ever with all the programs available. You can hop on something like Canva and look up a checklist template and create one. Whether for your free offer to get someone in the start of your marketing funnels, or whether you want to create actual printables for someone to have.
There are so many templates and samples available to choose from if you want to do this. You can sell them on your website or a platform like Etsy.
Final Thoughts
No matter which step you decide to take to multiply your revenue, stay fervent and positive. Don’t give up if at first it isn’t received well. Do it again.
Remember to also share what you are doing online so your audience can see it and have the opportunity to purchase as well. It is always good to give your audience, via email marketing and social media, first picks before releasing them to everyone online.
This will seem like you are showing them favour (which you are) and tends to make them feel special as well. Not to mention that your audience will be interested, believe me.
Tammy Durden is an award-winning business coach and consultant . She has established herself as an authority figure over the last 18 years while creating and growing several online service businesses. She is also a sought-after thought leader, course creator, and speaker in the online service industry.
+ All pricing quoted here is not real market pricing models, but rather serves as examples only.