Use these four stops to create a home-based business that’s not only lucrative and stable, but does not require the creation of a product or service.
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Choosing the right model is a keystone moment in starting an online business. Such an imagined enterprise can sell goods or services, or a combination of both. A good example of a goods (or product-based) business is an e-commerce store that sells clothing or accessories — tangible products that need to be produced and shipped to a customer. Examples of a service-oriented model might be coaching, consulting, digital marketing or a professional service firm that offers specialized business, legal, tax or medical services — provided value that is intangible in nature and generally involves the transfer of knowledge or expertise.
Service-oriented businesses can be further categorized into “low-ticket” or “high-ticket”. The former are those in which services are sale-valued at $2,000 or less, the latter those that sell for over $2,000. Starting a high-ticket service-oriented business generally involves a slightly steeper learning curve since the service being rendered involves a transfer of specialized knowledge, talents, skills or insights. An entrepreneur who starts one either has a professional designation and/or possesses advice and insights gained through experience.
An alternative path to creating a high-ticket service-oriented business without getting a professional designation or investing time and money to gain experience in a specific industry is to embrace a commission or referral-based model, which is straightforward: a commission is earned when you broker a deal between a service provider and their customer.
Lets go through the steps needed to form one:
1. Understanding the model
The attractiveness of this construction is that it does not require you 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 will need to partner with high-ticket service providers willing to pay a commission for introducing them to a customer. In the other, you find the service provider’s ideal customers and facilitate the transaction. In essence, you are the matchmaker between buyer and high-ticket service provider.
2. Finding and partnering with high-ticket seller providers
In order to facilitate a transaction between a buyer and seller, you first need to identify and partner with high-ticket service providers that would be willing to pay a commission or referral fee for each customer generated through your efforts. Let’s pick 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 marketplace. As an example, we’ll 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 in order to share their expertise with more people and get more customers.
If you conduct a Google search for the phrase “digital marketing services for law firms”, you will come across several marketing companies that speciali