One of the key mantras to succeed as a business is to focus on high value clients. As any successful entrepreneur will tell you, such clients are less fussy about pricing and are less demanding on the provider. However, acquiring such clients can only happen when you have established a reputation in your industry. Also, platforms like Fiverr offer entrepreneurs the opportunity to thrive in a low price, high volume setup.
This business model however requires the entrepreneur to have a clear strategy in mind on how to go about executing their projects. Spending too much time and resources on one project could deprive you of the resources necessary to execute enough projects on time to succeed. Here is an action guide on how to go about this.
Homogenize your offering
Every client is different and so are their needs. Understanding their requirements, working out an execution plan and processing their custom requests can take a lot of time and should never be undertaken if you are offering your services at a low fee. At this price point, it is important to homogenize your offering and create a routine so that you do not waste time in understanding each request.
Let us take the example of a graphic designer who wants to offer web and logo design to their clients. Large clients typically spend several hundreds of dollars hiring professional logo designers for their business. If you are offering your services on Fiverr instead, you may consider using online logo design tools like Logomaker to quickly create professional designs online that may then be tweaked further, if required. This allows you to offer your service at extremely low prices that appeals to clients looking in this target group.
Keep it organized
In a typical agency setting, service providers work on a number of different clients at the same time. This is to ensure clients see regular progress on their projects. Even in large organizations where workers are assigned to specific clients, it is not uncommon for a provider to work on more than one client requirements at the same time.
Although such processes are mandated by the need to maintain client confidence, they tend to bring productivity down. You can avoid this by taking a linear approach to project management. By executing one project after the other, you ensure complete focus on one assignment and this allows you to maximize your throughput.
While this is ideal, it is not always practical though. Sometimes, you may hit a roadblock on one project or may have to wait for further client inputs to proceed on one project. In such cases, it might be necessary to take on multiple projects at the same time.
A good way to keep your transaction volumes high in such instances is through the use of online productivity tools. Gantt charts provide a great opportunity to visually track movement on each of your different projects at the same time. These charts also allow you to view deadlines for each of your projects so you may prioritize your tasks.
For high volume businesses with homogenized offerings (like logo design, for example), you must also make use of checklist apps to ensure that you follow a standard process for each of your projects. This way, you can make sure to not miss a critical step in the process despite working on multiple projects at the same time.
Focus on the popular offering
One of the key elements driving success in a low price offering is serving a high volume of customers. This is only possible when you cater to the broadest segment of your target group. For instance, if you are an animation company, you will typically be offering a number of services like creation of explainer videos, visual marketing assets, video ads and so on. Find the category that gets you 80% of the income and focus on this category alone. There are two benefits to this. In addition to catering to the most in-demand projects, you may also narrow down your skill-sets to the few tools necessary to execute your projects. For instance, if you choose to go with video creation, you may specialize in tools like EZVid or Spark to service your clients.
Outsource your marketing
A low price business model often implies a low margin business. In the absence of an existing clientele, marketing your business can consume a lot of resources. In addition to costing you money, marketing can also take up precious man-hours that can be better spent on servicing clients.
By outsourcing your marketing to a third party, you can not only save time and resources, but also focus completely on what you do best. There are several ways to outsource your marketing. One popular strategy is to negotiate an affiliate marketing partnership with publishers in your industry. This way, bloggers and websites in your industry refer your business to a targeted audience and get paid a commission for every sale they bring you.
Reselling is another popular marketing channel. Here, you serve as the ‘back-end’ for organizations that provide the actual service. For instance, if you are a web design agency, you may strike a reselling deal with web development companies for their design projects. This way, the web dev agency gets to offer an additional web designing service to clients they work with and subcontract all design projects that come their way to your company.
Do you have a business catering to the low price, high volume model? Share your tips in the comments below.