On the first page of this article, C. J. Hayden explains how to tell if your business model is broken and why just raising your fees isn't a good fix for a broken business model. Here she presents a range of business model examples that will fix the problem and generate more income for your business.
Fee for Service Business Model Examples
Day Rate - Instead of charging by the hour, you can charge by the day or half-day. This imposes a minimum on your clients, avoiding short appointments that fragment your work schedule. Examples: An on-site massage therapist calling on corporate clients; a professional organizer serving home-based businesses.
Project Fee - Charging a flat fee for each project allows you to bill for time you spend planning, researching, or just thinking about your client's issues. Clients often prefer flat fees because they can budget their funds more accurately. Examples: A graphic designer creating a logo; a communications consultant writing a company newsletter.
Monthly Retainer - When you ask clients to pay by the month in advance, you can charge for your availability, not just service delivered. Your retainer can guarantee you a fixed number of hours. If the client uses less, you still get paid. If they use more, you can charge extra. Examples: A career coach offering as-needed calls and e-mails in between sessions; a virtual assistant providing on-call customer service for a small business.
Product-Based Business Model Examples
Flat Fee - A wide variety of items can be sold for a flat fee to increase revenue to your business. "Products" can also include services delivered in a defined package. Your buyers may be either existing clients, or others who can't afford to hire you individually. Examples: A conflict resolution consultant offering public seminars; an executive coach providing personality assessments; an image consultant selling a wardrobe design kit.
Subscription - Providing products or services by subscription can provide a steady source of income and reduce marketing time. A sale made only once can continue to provide revenue. Examples: A sales trainer selling an educational CD series by monthly subscription; a life coach hosting a membership-based online community.
Bait and Hook - Also called the "razor and blades" business model. Examples: A time management consultant offering a training program including day planners that must be re-ordered; a web designer providing proprietary modules under a license that must be renewed annually.
Any one of these models can be used to build an entire business, or you can combine different business models. For example, a consultant could charge a flat fee for assessments, then a day rate to deliver services. A coach could charge a subscription fee for group clients and a monthly retainer for clients worked with individually.
If your business isn't earning as much as you would like, look beyond your marketing or the rate you're charging. The real solution may be to choose a new business model.
C.J. Hayden is the author of Get Clients NOW! Thousands of business owners and salespeople have used her simple sales and marketing system to double or triple their income. Get a free copy of "Five Secrets to Finding All the Clients You'll Ever Need" at www.getclientsnow.com .
