My Location Independent Business Model

8 replies
Hello, I would like to share the business model I will be testing in the following weeks. I would like to know if you guys think this could actually work. I really appreciate any advice and opinions. I hope this plan can inspire other people to try similar business models in order to achieve freedom of mobility.

I am a web designer/marketer and been working locally on this field for about 12 years as a freelancer.

My current goal is to be location independent. Most people would think freelance job sites could help me achieve such goal but these sites are full of indian, phillipine, and other 3rd world freelancers that are good and cheap so it's very hard to compete with them for projects.

So I came up with a business model which is probably being used by other digital entrepreneurs.

My business model consists of selling different web services such as web design, video marketing/production, SEO, etc.

My marketing strategy consists of using classified ads to get independent salespeople for doing the actual selling to local business owners.

For example, if one of my services costs $600, the salesperson would get the local client, get paid $600 (or more if he can charge more). Then he would order the service from me at $300. The salesperson makes $300 (or more) and I make $300. Assuming I spend $50 in expenses to provide that service, I would be left with $250 profit.

Just 5-10 sales per month would be enough for me to alternate between living in Colombia, Brazil, and Thailand which is my goal.

Now, 5-10 sales per month looks attainable for a good salesperson but if one or two can't do it, I suppose I can always get more, in any city in the US or even in other "rich" countries.

Heck, for the lifestyle I can have, I would even be willing to lower my prices so the salespeople could earn more while maintaining the same competitive prices.

I understand I would be limited by the work volume I can handle but after 12 years doing web services, it takes me very little time/effort to finish projects. I can always outsource to a third world country if I am overloaded with orders

Do let me know if you have any questions!
#business #independent #location #model
  • Profile picture of the author Jerry McGough
    I think that you better concentrate on clients with some sort of recurring need.
    Give your sales people a small (10%) of that also.

    Create a bond between yourself, the sales person and the customer.....or your sales people are eventually going to cut you out and go right to those othersources,

    If you're skilled in website building, you should be able to crank them out pretty fast.
    Maybe try mobile and SMS.
    Do the sites with a hosted option of $100 plus $27 a month......instead of one time $397....and include monthly traffic reports and a couple of changes (such as a coupon offer or new product announcement)

    If you're building a business, it's nothing to have a customer for ten years.....I've had some for over twenty.....
    Think lifetime customer value......

    Good luck
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    • I like the idea, but that to me is not important.

      if this is what you want, the facts :

      the marketplace is big enough, they spend money, and have to spend money to make money.


      Can you do it? you can create it the way you want, no matter how extreme you think it is or what people (warriors) say.

      if you really believe. if you feel it's the "right way for you", then it's yours to go get.

      just go create it.
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  • Profile picture of the author Hugh
    Sell pkgs that you can get residual income from. Bundle things
    so that no one can exactly match what you do. $89 per month
    is my magic number.

    Hugh
    Signature

    "Never make someone a priority in your life who makes you an option in theirs." Anon.
    "Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon." -- Winston Churchill

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  • Profile picture of the author gandrews711
    I agree with the comments thus far. I, too, believe that you need a model that includes recurring income (and the opportunities for upsells) to realize fully the potential of such a plan.

    In my opinion, given your lifestyle plans, you should raise your sights and start outsourcing from the beginning. You'll find that you'll need to spend some time coordinating with your sales staff and that will cut into creative time. Better to have a relationship with several offshore designers who can learn your processes and produce results up to your standards.

    And there's no reason you can't jump in and help in a crunch. The operational truism is that, no matter how well you can do something, you can only do one thing at a time. The essence of management is getting work done through other people. Begin to think of yourself as a manager and not as strictly a creative designer anymore.

    Plan on diversify your offerings: your sales folks will find it easier to sell to existing customers rather than constantly scratching for new opportunities with new faces. Even if you're not comfortable with some of the add-ons like SEO, mobile, or SMS marketing, you can easily find offshore assistants who are experienced and eager to work for you.

    Your main job then becomes coordination and quality control, if you're comfortable with that.

    Best of luck!

    --George
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  • Profile picture of the author Jon Paella
    I think this is a good approach. Many people take a similar approach in other businesses. The trick is in getting good salesmen and training them. I'm looking into this for my business myself. Give salespeople a good commission/cut and that will help them and motivate them to do the job. And the more good salespeople you get to work for you, the better it gets!
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  • Profile picture of the author danielmcclure
    One other thing to consider is whether you really need the salespeople. If you can create another channel for getting clients that can be managed remotely (i.e. most digital) then you can spend that excess money tweaking lead acquisition models and eventually bring it down. You can still talk with clients over the phone via Skype from anywhere in the world and often they won't even need to know. In three years of Freelance work I only ever met one client face to face (that wasn't a friend or such already) and that was more by chance than anything at an event we found we were both attending.

    Make sure you check out Live and Work Anywhere | Location Independent too as they have years worth of information direct from people who've actually lived the lifestyle.
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    • Profile picture of the author Newrichgraphics
      Originally Posted by danielmcclure View Post

      One other thing to consider is whether you really need the salespeople. If you can create another channel for getting clients that can be managed remotely (i.e. most digital) then you can spend that excess money tweaking lead acquisition models and eventually bring it down. You can still talk with clients over the phone via Skype from anywhere in the world and often they won't even need to know. In three years of Freelance work I only ever met one client face to face (that wasn't a friend or such already) and that was more by chance than anything at an event we found we were both attending.

      Make sure you check out Live and Work Anywhere | Location Independent too as they have years worth of information direct from people who've actually lived the lifestyle.
      How much are the services you sell without meeting face to face?
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