Andrew H

Hey guys

I already have a web design business which does aright for me right now, but I am in search of that elusive residual income.

So, I am now just wrapping up the website for my ALL NEW! mobile restaurant design company (who am I kidding, it will probably take another two weeks... )

BUT! I am really hung up on what my business model should be. I plan on designing a nice html5 design with three to four different color schemes. Then for each site I will just replace the logo at the top, pick the best suited color scheme and insert map and put the html in for the menu (& nice click to call/email icons at the bottom). (To implement each site I figure it will take about 1-2 hours - not including dealing with customer and getting access to get js redirect onto their main site)

So here is where I am hung up: three different biz models:
1. Charge $24.99/Month first month due up front - no obligations cancel anytime
2. Charge $24.99/Month free for first month, no obligations cancel anytime.
3. Charge $99 setup fee, then $19.99/month - no obligations cancel anytime

I think that with the setup fee I will get people that are more serious, and with no first free month I will get a lot more interest, but also will get people that aren't all that serious.

A side note: I would consider myself a fairly skilled designer, so the mobile sites will look good. (Not like some of the templates that come in the WSO's)

Any help on the biz model would be appreciated! plz don't refer me to any WSO's

WillR

We can sit here and talk numbers all day long.. the problem is it makes no difference to your situation. Now you have these options it's up to you to hit the road and start testing them against one another... that's the ONLY data that should matter to you. A few people could tell you they think option x is the best way to go but that doesn't mean you should take that as fact. You could end up losing out on a load of sales by using the wrong price point. So let your customers vote with their wallets and tell you exactly what they want. It's the only way to do things properly.

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Andrew H

Hey Willr,

Thanks for the reply. I definitely do agree with you regarding the need to feel out the market first. But I plan on doing a fairly hard launch so I am just asking for suggestions from people who have the experience already.

I am leaning more towards the 24.99/ Month with first month free because I feel like once they have the mobile website (and the tracking code isntalled), they won't want to turn back. But this will also get me tangled up with some 'financially challenged' people.

WillR

I would say get rid of the one month free and only use it as a bargaining chip if you see it's needed. There's no point giving away a month just for the sake of it. If you have a service that is great then you shouldn't need to give it away.

So do your best to build up the value and sell your regular package as is and then, only if it's needed, you can pull them over the line with the 1 free month. If you can see you are losing them then the no obligation 1 free month could be a nice way to get them back into the deal.

I've always been a big believer in keeping a bargaining chip up your sleeve. So create your best offer possible and then create something on top of that you can use only IF needed.

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➨ Here's How to Make Your First $177 Online
This Week Using the Piggyback Method...

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lint631

Hey if you want to launch with a bang why not include the setup fee instead of giving away a free month. Make it time sensitive so the offer only lasts for 60 days or so. That way then after the deal expires you can try selling it with a setup fee. Creating that sense of urgency could also land some sales. I've had some success with that tactic.

Like WillR says test it out and see what works. Post your sites up when you're ready. Would love to see them!

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WillR

That's definitely another good option. In essence it's basically the same thing but you are framing it differently.

As I have talked about in a previous post, if you do decide to go with this type of setup then make sure you have printed materials that show your pricing plan WITH the usual setup fee. That way they can see you usually do charge a setup fee and you can tell them you have slashed it for the next 2 weeks as an end of financial year bonus or something like that.

Another important thing to remember when giving discounts is to always have a logical reason as to WHY you are offering that discount. Discounts for discounts sake tend to make a product look cheap and less desireable. If you do it the way I mentioned above then you are not cheapening your service you are just adding some scarcity to help get them over the line.

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➨ Here's How to Make Your First $177 Online
This Week Using the Piggyback Method...

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Andrew H

These are some great ideas, thanks guys. My website is setup in such a way that the restaurant owners will be able to signup through a form on the site (which I am trying to make easy and aesthetically pleasing) - so generating traffic to the site was my original goal, but I think I was overestimating how effective this would be. Getting myself into the restaurants is definitely how to get things going, but timewise this will be hard.

So my first launch plan is to design a nice postcard ad, get 1k printed and then just grab 2-3 people off craigslist and get them to stop by all the restaurants in area x and drop them off, trying to get this done within a week (or I might do this myself which would definitely increase sales, but I don't have too much time with my workload with my main web design biz).

Good ideas with the setup fee then I have a bargaining chip, I like that.

Thanks for the ideas, it is helping me think through my strategy.

sodomojo

Let us know how you marketing works. Do you have a link to your site?

Andrew H

Not yet, still on localhost getting everything going. I might post the link in my signature when it's done, still weighing the pros and cons of that

George Phillip

You ultimately get paid $$$ in proportion to the value you demonstrate. Price shouldn't really be the negotiation point.

-Setup mobile website
-Setup mobile landing page
-Setup mobile leadgen campaign

If you want more money you would charge a one time setup fee + monthly residual and try to get a 3 month minimum commitment(that is my model).

For that amount the client would get something like this

Landing Page


PPC Stats


Lead Generation Results


A fully functioning mobile ecosystem that gives them visibility in the mobile space, captures leads and drives revenue/sales.

That can justify charging a reasonable price based on results.

Andrew H

Thanks a lot for all the comments. A lot of you guys have made some really interesting points, and have got me thinking a lot about mobile marketing. But for now I think I am going to focus on just creating mobile sites (I think I can get enough sales focusing on positive aspects of reaching mobile users). Then once I get a decent client base I will start up selling them with the mobile marketing, because they will already have the mobile website infrastructure in place.

Thanks so much for all the great comments, I appreciate the helpfulness in this community!

Andrew H

@ George Philip

I am really impressed with your 'fully functioning mobile ecosystem' you seem to really bring value to your clients. I can only hope in the future to be as comprehensive as you are in your mobile offerings.

nickhumph

Thanks for this tip, a mobile leadgen campaign is definitely a great upsell!

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4webmaster

What a great idea, thank you. I can see your model in any business and services. I saw a WSO similar to your idea in the past.

https://stevesuard.com

Hendley

Like Will says the best thing to do is to test test and test. Go with what works and if it does not just move on.

NewParadigm

Ask a restaurant if your first meal is free. I bet none would. Well, their first month shouldn't either. But tell them they'll be happy to buy your dinner monthly when they get their results!

Andrew H

Launching hard in two days, going to hit the streets with a couple hired salesmen. Will have details in another post soon!

lint631

Awesome good luck! Keep us in the loop with what happens.

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Jason Kanigan

Go have a look at all this.

You'll see how you can easily take the prospect's number of monthly revenue and turn that into a monthly recurring payment for you.

Keep looking down the thread...the guys started using the method.

>> About Jason, Podcast Interviews, Books and More

>> For Agency Founders: How To Regain Control When You're Overwhelmed and Don't Know What To Do Next

sammib01

I would go with number 3. It shows the value of the setup, 19.99 is under 20 and a good marketing number, you get money upfront and because the customer has paid upfront they will Not want to lose the Money and will Stick with it for atleast 3 or 4 months. But the others are right it is important to get started the First steps are the hardest... So make them as quick as possible so you can Build momentum and Start your business.

I just did a local or better Clinic Reputation Campagne as I called it for a group of 3 hospitals. After meeting with them, only on the Internet, I decided they needed 80 - 100 keywords to rank well in Google to reach thier Goals. As I had never done this before I asked a small setup fee in proportion to the work (5000 € setup about $ 6250 and 500 € per month $ 625). Someone who had worked with me on a international campagne for a jewelry company had a best friend at one of the hospitals and Sent him to me. I used Google Places Scout a GREAT program. End of the story is 41 position 1 on page 1 of Google and 88 in the Top 5 of Google on Page 1. The Doctors and Professors were blown away, I was more suprised than they were.

Had I known it would be so successful I could have asked for 10,000 € and 750 € per month. Sell the value, what it is worth Short term and Long term. But I got more business because of the success of this even a company working with Microsoft, Oracle, SAP, Deutsche Bahn, German Railroad, Shell and many others. It works and the value is unbelieveable.

Hope this helps and Good luck

pwk2000

I would just ask for $399 annual fee. Seems way easier then paying $20 a month. Offer a partial money back guarantee if they are not happy.