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Thinking of moving from services to digital products?

services to digital products

Running a 1:1 client business is a very tough business model. There’s a constant stream of projects and fighting fires often at the time you most need some peace!

Clients need your time and attention all the time and you can sometimes spend so much time taking care of clients you have no time for business growth or your health.

A disclaimer on this first – the grass is only greener on the side you water. You have to be prepared to put in just as much effort (if not more!) to transition into a digital products business.

So let me share some thoughts with you today on making the transition…

The Pro’s

More flexibility & simplicity

Having a business model that doesn’t revolve around private client work does give you more flexibility to live your life how you want to. This simplicity can not only boost your revenues, but boost your health, wellbeing and happiness. With a digital product business you can work from wherever you want, usually you only need a laptop and internet!

Recurring revenue

Although it takes time to build a recurring revenue business model, once you get your members to a certain number you’ll have a predictable income. Even better, if your products don’t require maintenance (passive income) and that income covers your expenses you become entirely financially free – the ultimate goal!

Creative freedom

There is no better feeling than waking up without an alarm! Choosing to spend your day working on whatever you want to grow your business. As much as revenues are important, there is nothing more important than feeling happy and fulfilled. More time freedom gives you that.

The Con’s

Becoming a start up again

You’re going to become a startup business owner all over again, and with this new business model comes a new set of challenges, problems and needs. Moving away from what you know can be exciting, but it can also be highly stressful going into the unknown. And its not necessarily going to be the easy option – at least not to begin with.

Figuring out the marketing

What has worked for your business, might not work anymore. Marketing products is different to services. This is especially true if you rely on referrals and in-person networking! You’re likely to experience more frustration as you navigation the ocean of online opportunities and figure out what’s best for your new business.

Customer service headaches

You’re going to get a lot of people emailing you things like “I’ve lost my login”, “ How do I access the website”, and other things that may seem trivial and sometimes obvious… and unless you’re going to pass all these tasks to someone else, they’re going to fall into your lap. You’re will spend time chasing failed payments for nominal amounts and it won’t always be cost effective to recover them.

Are you in it for the right reasons?

Ask yourself some questions about why you are doing this before you spend any more time exploring ideas.

If you’re thinking that this is a quick solution to your current business problems, then ask first – “Why am I having these current issues?”. If you’re inherently bad at the finance side of your business then transitioning to a product based business model isn’t necessarily going to fix that! In fact, you might make the situation worse as you’re moving into unknown territory.

If you’re thinking that this is going to be an overnight fix to your profit problems, then it’s important to consider that building a successful product based business takes time and effort. Unless you’re making the transition gradually, be prepared that it will take you a while to build profits back up again.

If you think that its going to be an easier business to build, then again I’ll remind you of a quote. “The grass is only greener on the side you water”. Far too many people are trying to get into the products industry thinking its going to be an easy ride. But you’re only ever going to succeed if you put in the work, regardless of the business model.

If you’re doing this because you think its going to be an easy ride and make you 7 figures in your first year, then you’re going to be disappointed. That’s a fast track to failure and not the right reasons to make the transition!

But if, like I did, you’re doing it because it makes sense for you and fits with your goals, dreams, ambitions and the goodness you want to put out into the world then go for it!

Next steps…

Have you established that you’re doing this for the right reasons? Now its time to start pulling all the years of experience out of your head and turn them into products!

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