I currently run a product business and have run many service businesses online in the past.
If you’re just getting into the game and you are wondering whether you should dive into a product business or a service business it’s key to know the pros and cons of each one.
(Please note, I’m talking primarily about online businesses that deliver digital products or digital services.)
PROS OF RUNNING A SERVICE BUSINESS
- Great way to develop skills and quickly turn those skills into money (like when I sold graphic design or SEO services to clients)
- You can sell right out of the gate without building anything (send the invoice and deliver the service, no setup beforehand)
- Easy way to get lots of referrals (when you deliver a service to someone, chances are there’s people around them who want it too)
CONS OF RUNNING A SERVICE BUSINESS
- Immense time investment if not setup correctly (if you’re in charge of sales AND in charge or fulfillment, you’ll be working all day)
- Always hunting the next client (since you have no real assets built, if getting repeat clients for your service is hard you’ll need new ones)
- Can be stressful “reporting” to people (if you have lots of clients, in a way you have a lot of bosses that you have responsibilities to)
PROS OF RUNNING A PRODUCT BUSINESS
- Build the product once and sell it forever (nobody pays you to BUILD the product but once it’s built you have an asset you can resell infinitely)
- More sales doesn’t mean more time invested (digital products can be delivered instantly whether it’s noon or 4 in the morning)
- You can open it up to affiliates to sell for you (a one-time setup can open up the floodgates to affiliates that will sell your product FOR YOU)
CONS OF RUNNING A PRODUCT BUSINESS
- Building a product is a TON of work (nobody pays you while you’re building the product, even though you can earn when it’s live)
- You have to be better than the competition (chances are other people are building similar products in your space, so you have to one-up them)
- There’s ALWAYS extra work that goes into it (in addition to building the product you’ll need to build a sales funnel to sell it)
I recently announced that I wasn’t taking on clients anymore in my business and that is so that I can devote my time to a product business, where I sell lines of digital products from the various companies I’m running in different spaces.
When I started out though, I was running service-based businesses almost exclusively.
It was the fastest way for me to come into a marketplace and monetize a skill that was in demand like graphic design or SEO (can be others too of course for you).
Personally, as I went through the years I would get better and better at getting new clients.
But what that left me with was a LOT of clients where I was doing all the fulfillment by myself in ADDITION to going out there and getting those sales in the first place.
Discovering that I loved building digital products helped push me in that direction as well.
It really depends on personal preference, don’t get me wrong.
Some people absolutely LOVE and THRIVE in client based businesses.
Some people prefer making digital products and selling those passively.
At the end of the day it comes down to really analyzing those options against your BIG vision of where you want your life and your business to go.
Do you like working with people 1-on-1 to help them solve their problems?
Or do you want to wake up with nobody to report to that day?
Do you like getting on Skype calls and coaching people through things?
Or do you want products to be sold with passive marketing campaigns you run?
Ask yourself these questions (and feel free to ask me any questions as well) while determining which one you want to start with, and know that you can always SWITCH LATER if you feel you’ve picked one you don’t resonate with or you can DO BOTH if you feel inclined to do that as well.
Business can be extremely SIMPLE or extremely COMPLICATED based on how you set it up.
One way to make business easier is to run an online business…
…but even THAT can get overcomplicated QUICK (if you let it).
For example, starting a physical brick and mortar business gets complicated INSTANTLY. You have to go far into debt for it, run through all the red tape that comes with a physical business and deal with everything that comes with a physical building.
Starting an online business can be much simpler.
You don’t need a building.
You don’t need to go into debt to start.
You can literally get started as long as you have wifi.
NOW…inside of the online business world we want to keep it SIMPLE.
Lots of people complicate it for the following reasons:
- THEY TRY TO DO EVERYTHING THEMSELVES
In an online business there are a lot of different components. There’s creating a product to sell, creating the sales funnel, building a list, emailing your leads, etc.
These are all things you should learn how to do EVENTUALLY but if you try to learn them all right out of the gate before you make money, it will take you forever to make your first dollar. The best solution is to leverage an internet business you can come into where 90% of the work is done for you and you just have to drive traffic to make sales.
2. THEY DON’T FOLLOW A PROVEN GAME PLAN
If you really want to make money online, there are PLENTY of people who have figured it out before you. There’s no need to reinvent the wheel.
It will take FOREVER for you to get results if you’re just trying to figure out everything yourself. But if you make it a priority to lock onto a mentor QUICKLY you can learn from them and avoid all the mistakes they made and replicate their success much faster.
3. THE FOCUS ON TOO MANY ACTIVITIES
Like I said, there are a LOT of different skills needed to build a truly successful internet business. But these skills take TIME to develop and it’s best to develop them one at a time. If you try to master them all at once, you’ll master none.
Keep an eye on what the skills you need to learn ARE…but aim to master them one by one. By diving into a leveraged business system where the system is built for you and you just need to bring leads to the system, you get to focus on TRAFFIC and not have to try to master a thousand skills at once.
Avoid these 3 mistakes and you’ll be able to start a business online that is simple to run and is able to earn money for you passively. If you fall for these 3 mistakes, you might wind up with an internet business and it might even make money, but it will be stressful and you’ll never be able to truly grow.
WHO ARE WE TO PLAY SMALL? Marianne Williamson said “Our deepest fear is that we are powerful beyond measure. It is our light, not our darkness that most frightens us. Your playing small does not serve the world.”
The event (if I can even limit it down to calling it that) I just attended last weekend rocked me, completely changed the way I view myself, the world and how I’m operating in it.
Because it went one level deeper than most do…it went for the beliefs. The very beliefs that are either propelling you forward in business and life or catapulting you backwards away from where you want to go.
(Driveway of the event resort. I love palm trees.)
Your beliefs are either pushing you FORWARD…
…or they’re holding you BACK.
And it’s up to you to figure out what they even ARE in the first place so that you can figure out which are working for you and KEEP THEM and which are working against you and SHED THEM.
Letting go of beliefs that don’t serve you is one of the most powerful things you can ever do for yourself.
It’s a cleansing of everything that is holding you back from revealing your true essence to yourself, one of unlimited power, unlimited potential, unlimited creative energy that you can shine in every direction endlessly forever.
We get away from all of that when we get stuck in our limiting beliefs…and I discovered some HEAVY ones of mine at this event (AWOL’s #AWAKEN) that rocked me to my core.
My BIGGEST was a subconscious MASSIVE fear of failure in public in front of an audience of millions, and because of that fear I’d been doing things to hold myself back from getting enough success to be recognized by such an audience.
Kind of crazy when I got down to it…
I was telling a friend this on the phone today and he said that even if I ended up flaming out in some catastrophic meltdown at a multi-million dollar level…the percentage of people who would even NOTICE would be slim to none.
Once I found out this belief was even THERE it lost a LOT of power. The awareness is step one, and digging into the belief BEHIND the belief is step two, figuring out what the SUPPORTING belief is that gives that first one life.
And for me I had linked those “future massive failures” to a loss of love, from the marketplace, from my peers, from the people I looked up to, from everyone around me.
Intense realization right?
But again…ONCE I SAW IT FOR WHAT IT WAS it lost a LOT of it’s power and all of the sudden many things made sense.
I saw where I self-sabotaged my own GROWTH…
I saw where I held myself back EVERYWHERE…
And I knew for the first time WHY I did it…
That inward look is one of the most powerful things you can ever do for yourself my friend, to get clear on your beliefs so you can water the ones that serve you and set fire to those that don’t.
You’re in charge of them.
Don’t let THEM be in charge of YOU 😉