When it comes to increasing your revenue, there are essentially three ways to do it according to marketing genius, Jay Abraham…
- Increase the number of clients
- Increase the size of the transaction
- Increase the frequency or residual ways you can make money from that client relationship.
This is a problem facing many solopreneurs in 1:1 service-based industries like coaching, healing professions, consulting, social media, graphic design, organizing and fitness training to name a few.
Let’s address each one so you get a clear picture of the futility of the 1:1 set-rate, service-based model that most entrepreneurs find themselves in.
First, if you are providing services on a 1:1 basis as the bread and butter of your business, eventually you will max-out your schedule and probably be exhausted. You’ll also hit a ceiling of income. Unless you are a sought-after expert in your industry, chances are that ceiling will be less than optimal, too. And don’t even think about getting sick or taking a REAL vacation or you’ll lose that income.
On top of that, you have to factor in time for marketing and all the other ancillary functions of running a business. Once you’ve taken care of the business of running a business, there’s not a whole lot of time left for actual service delivery anyway.
Let’s say after subtracting out time for marketing, administration and all the other non-service delivery functions of your business, you are left with 20 hours per week. Best case scenario, you have a chock full schedule of clients, each receiving 1 hour of service at $50 per hour (That is the average, by the way, for these professions.) That’s $1,000 per week. Multiply that out over a year minus a paltry 2 weeks of vacation and you’ve earned $50K. That’s before taxes and expenses and no time off for sick days. Not very enticing, would you agree? And that’s with a full client load!
Second, another challenge is that typically in those 1:1 service-based businesses, the provider charges an hourly rate or a rate that can be broken down into an hourly measurement. For example a coach may charge $300/month for 2 half hour calls/month. That is still an hourly rate of $300 per hour. (Although that may sound great to you, the median annual income for coaches is only $37,500 as of 2010!)
Finally, those 1:1 service-based businesses typically have only one means of interacting with their clients – either in person or over the phone. Beyond that, most of these hard-working, well-intentioned solopreneurs have no other means of serving their clients other than more 1:1.
Can you say BURNOUT! It’s no wonder so many entrepreneurs go under in three years or less or bounce from one idea to another!
The sad part is that it doesn’t have to be this way. There is a solution and it’s not a get-rich-quick plan. It’s savvy. It’s strategic. It’s sensible. It’s scalable. And perhaps most importantly, it’s sustainable. The solution is SPEAKING. Speaking, combined with a leveraged progression of products and services that meet your clients’ needs at various price points and levels of interaction with you, is one of the fastest and most effective ways to grow your business and free you up to focus on doing the things you love most.
Time is running out to learn how to put these pieces together sooner rather than later and break through your current income ceiling. My next Speak to Profit live intensive course is coming up October 21 – 23. Unlike other seminars where you sit and listen and hope to glean a few nuggets, this is a roll-up your sleeves and create it training. You’ll walk away ready to hit the speaking circuit and implement your plan right away. Learn More Now.