How to MAKE MILLIONS of Dollars in a SERVICE BASED Business…
Summary
- If you're in a service business, one of the best strategies to maximize revenue is to think beyond just selling products or services, by also offering access.
- I run multiple types of businesses, including a publishing business, chain of photography studios, a certification business, an online training company, gym licensing, supplements, and a software company for agency owners.
- There are three product categories you can explore: physical products, services, and access – each with digital and physical aspects.
- To avoid being a commodity, you need to differentiate your business from competitors and aim for monopoly pricing by offering unique value.
- Combining different types of products, services, and access can help increase enterprise value and makes it harder for others to replicate what you're offering.
- Access-based offerings are compelling because they have high margins, especially digital access, which can be nearly 100%.
- Selling high-ticket access to a more personalized experience or service can be an effective way to generate significant cash flow.
- Instead of depleting all demand, sell less than you could to maintain goodwill and create pent-up demand for future offers.
- This business model can lead to a healthier, more sustainable business growth without always needing to find new customers.
- High-ticket, limited access offers tend to attract less needy customers who provide better testimonials and outcomes.
- The goal for your business should be to grow your base gradually, offering more access over time rather than trying to sell out completely at once.
- This approach helps maintain a strong relationship with your audience and allows for repeat business.
Video
How To Take Action
I would suggest combining your products and services with access to provide unique value. Let's say you're running a photography business, think about how you can offer an exclusive online photography workshop for a limited number of people. You might only take five clients for a personalized experience, and this creates urgency and scarcity.
If you sell a physical product, consider adding a digital aspect. For example, if you sell workout equipment, you could offer digital training guides. This adds value without much cost.
To stand out in the service industry, sell access to personalized experiences or high-touch services that are not widely available. This is where you can charge premium prices because you're offering something unique, like a year-long mentorship with a guarantee of certain results.
Remember, don't sell to everyone. Keep the demand higher than the supply. If you could sell to 100 people, sell to only 20 instead. This way, you maintain customer interest and excitement for future offers. Plus, these customers will likely be less needy and provide better testimonials.
Always aim to grow your customer base slowly by offering more access over time, rather than trying to sell to the maximum number initially. This will help maintain a strong relationship with your customers and ensure repeat business.
Focusing on access can be a game-changer, especially when it's digital because the margins can be almost 100%. So take those steps, think about how you can offer unique, high-margin access to your services, and watch your business grow sustainably.
Quotes
"The goal is to be so different from everyone else in the marketplace that people have to consider you on their own as your own standalone business"
– Alex Hormozi
<<<
"You win the game by being a monopoly, by being so good that no one else can compete with you"
– Alex Hormozi
<<<
"If you have a service, maybe I can add some sort of digital component to it or maybe I can add some physical products that go with it"
– Alex Hormozi
<<<
"Digital access is almost 100% margins"
– Alex Hormozi
<<<
"It's much easier to maintain goodwill and multiply it and then just skim a tiny amount off the top"
– Alex Hormozi
