There are a lot of talks online about “freedom based businesses” and a lot of guidance around which model is the right one to pick. This I feel has led to a ton of online entrepreneurs following a cookie cutter method to setting up a business which has led to a real lack of innovation & thought into how best we can serve clients.
Does anyone else feel this way?
Before I go further, for anyone reading this who isn’t sure what the difference between a service based + an info product business is, let me explain.
What Is The Difference Between A Service and Info Product Business?
A service-based business provides a service to its clients. For example, I am the Director of a Content Marketing Agency that helps clients with blogging and guest blogging. We physically conduct the competitor & keyword research. We put together the creative, we write the blog posts and we track the results and report on them.
An info product business teaches the client how to do it themselves. So, instead of providing the service they provide advice about how they got results so that the client can reproduce those results. This information can be delivered via a community group on Facebook, a video tutorial, a group call, or even a PDF download.
The reason why this method is so popular is that one product can be sold over and over again to a huge number of people, thus multiplying business income exponentially.
Which Business Model Is Better?
I honestly don’t believe one model is better than the other. I believe that they both work for different reasons. What I am adverse to is many entrepreneurs who might be more suited to a service based business avoiding it because the message is that service-based businesses equal no money and a lot of pain, whereas info product businesses can be run from a beach in Hawaii and is an easy way to make a million.
For anyone thinking about starting a business. There is one thing that is absolutely true – no matter what business you start, it is going to take time, energy & a ton of learning and growth to get it to a successful point.
You ask any successful entrepreneur and they will tell you the same thing.
I know how easy it is though to get caught in the trap of thinking if you follow a step by step example and a specific model you can easily make tons of money. I’ve fallen into the trap of setting up side projects and businesses, wasting time on something I’m not totally passionate about just because someone said: “it was easy”.
Learning a new skill is never easy, it takes time. And that leads me to my issue with everyone setting up info-based businesses. Please ask yourself, am I cut out to be a teacher and is this my passion and desire, or someone else’s.
Because we don’t all need to be teachers, is this really the best way to build a new economic future??
I mean, are we all just trying to become masters at every single skill under the sun until we never need to work with anyone else again?
That sounds like a pretty dull, boring and tiresome world to me! And it is also a very ineffective way to grow a business. You excel in some areas and you suck in others.
Which Areas Of Business Do You Excel In?
I, for example, am great at the creative stuff, the writing, the engaging, I’m great at speaking with clients and selling and keeping them happy. I’m good at the long term vision of where I want the company to go and looking into the future.
I’m not good at the nitty gritty stuff. Furthermore, I’m not good at being consistent, at ensuring all of the tiny details in the business are being taken care of. I’m not good at the small numbers stuff. I’m getting better at planning the day-by-day and tying it into the long-term vision but it’s taken me time & extra focus to do achieve that.
Outsource The Areas Your Need Help With
So, I have people who help me with the day to day stuff. I invest my money not in courses, but in professional, expert help in those areas which are fundamental to the growth of my business.
We aren’t talking thousands of dollars here, we are talking hundreds of dollars. So, it is possible for a new business as well.
I enjoy working with other people, I like having their expertise in my business. As I grow, I can invest more with them and that value can increase even more. It’s about establishing a long-term relationship with someone else who can provide a ton of value to your business even beyond the service they are providing.
If you are making a choice between learning a skill you aren’t comfortable with or don’t enjoy Vs hiring someone – hire someone every time!
And, if you are deciding between a service based or info-product model, make the decision based on what is right for you, not what everyone else says! If there was no money in the service industry it wouldn’t account for two-thirds of economic activity in the USA & quite frankly we need to stick together and combine our talents!