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Why Selling Websites to SMALL Businesses has BIG Potential
Published on September 28, 2016
Would you rather have 5 big web design clients pay you $1,000/mo each? Or would you rather have 50 smaller clients pay you $100/mo each? The idea of getting huge checks every month from just a handful of clients rather than collecting smaller invoices from a larger number of customers may sound appealing at first. But there's a lot more at risk.
On a Season 4 episode of CNBC’s The Profit, billionaire-extraordinaire, Marcus Lemonis, shared a sentiment with Patrick DiLascia, founder of DiLascia, a popular clothing design company in California. After Patrick revealed that his business saw a 33% drop in revenue after one of their clients went out of business, Marcus proclaimed:
“To lose 1/3 of your entire business when 1 account goes out of business is way too vulnerable for any business to be.”
Diversifying and spreading out your revenue across many clients is the key to stability in any business. Savvy business owners would prefer lots of clients who are diverse in type, and who may be individually worth less in revenue, but together are worth much more in stability and longevity, and therefore, revenue as well. In other words, don’t put all your eggs in one basket…or even one-third of your eggs!
How Does This Translate to Your Web Design Business?
The business model that most SiteSwan resellers adopt is to sell simple, affordable websites to a large number of small businesses of every kind. If you are diligent about sticking to a simple, low-cost pricing model that fosters long-term relationships, and acquiring customers over a wide spectrum of small business industries, you’re creating a business that has huge potential for long-term success.
Sometimes you may run into a business owner who has big hopes and dreams, with a big budget to back up those dreams. However, the time and attention it will take to service that client may not be worth it to you, especially if they are going to make up a large part of your business’s revenue, and there is no guarantee of them being around for the long haul.
Focus on Passive Income
Another benefit of selling websites to small businesses is the opportunity for recurring revenue. By offering website maintenance and updating services, you can ensure a steady stream of income month after month. Small businesses may not have the technical skills to manage their own website, and may be willing to pay for ongoing support to ensure their site stays up-to-date and functioning properly. This can provide a reliable source of income for your business, and can also help build long-term relationships with your clients. The great thing about building simple sites is that they normally require very little maintenance so these fees generate a steady stream of passive income.
Reach a Wider Audience
Another advantage of selling websites to small businesses is the ability to reach a wider audience. Small businesses are everywhere, and they often serve local communities. By targeting these businesses, you can tap into a large and diverse market, and expand your reach beyond just the big players in the industry. This can help you grow your business and increase your revenue.
If you're looking for the best types of small businesses, check out our Website Themes for some of the most popular industries to target.
Scale Your Business
Finally, selling websites to small businesses can be a more flexible and scalable business model. As your business grows, you can expand your offerings to include additional services such as SEO, reputation management, social media marketing, and e-commerce solutions. This can help you keep pace with the changing needs of your clients and ensure that your business remains relevant and valuable to them.
In conclusion, selling websites to small businesses has big potential and offers many benefits, including stability, recurring revenue, a wider audience, and scalability. By focusing on a simple, low-cost pricing model and building long-term relationships with a diverse range of small businesses, you can create a successful and sustainable web design business.
Listen to Marcus. Don’t create vulnerabilities in your business. Diversify your revenue!
Would you rather have 5 big web design clients pay you $1,000/mo each? Or would you rather have 50 smaller clients pay you $100/mo each? The idea of getting huge checks every month from just a handful of clients rather than collecting smaller invoices from a larger number of customers may sound appealing at first. But there's a lot more at risk.
On a Season 4 episode of CNBC’s The Profit, billionaire-extraordinaire, Marcus Lemonis, shared a sentiment with Patrick DiLascia, founder of DiLascia, a popular clothing design company in California. After Patrick revealed that his business saw a 33% drop in revenue after one of their clients went out of business, Marcus proclaimed:
“To lose 1/3 of your entire business when 1 account goes out of business is way too vulnerable for any business to be.”
Diversifying and spreading out your revenue across many clients is the key to stability in any business. Savvy business owners would prefer lots of clients who are diverse in type, and who may be individually worth less in revenue, but together are worth much more in stability and longevity, and therefore, revenue as well. In other words, don’t put all your eggs in one basket…or even one-third of your eggs!
How Does This Translate to Your Web Design Business?
The business model that most SiteSwan resellers adopt is to sell simple, affordable websites to a large number of small businesses of every kind. If you are diligent about sticking to a simple, low-cost pricing model that fosters long-term relationships, and acquiring customers over a wide spectrum of small business industries, you’re creating a business that has huge potential for long-term success.
Sometimes you may run into a business owner who has big hopes and dreams, with a big budget to back up those dreams. However, the time and attention it will take to service that client may not be worth it to you, especially if they are going to make up a large part of your business’s revenue, and there is no guarantee of them being around for the long haul.
Focus on Passive Income
Another benefit of selling websites to small businesses is the opportunity for recurring revenue. By offering website maintenance and updating services, you can ensure a steady stream of income month after month. Small businesses may not have the technical skills to manage their own website, and may be willing to pay for ongoing support to ensure their site stays up-to-date and functioning properly. This can provide a reliable source of income for your business, and can also help build long-term relationships with your clients. The great thing about building simple sites is that they normally require very little maintenance so these fees generate a steady stream of passive income.
Reach a Wider Audience
Another advantage of selling websites to small businesses is the ability to reach a wider audience. Small businesses are everywhere, and they often serve local communities. By targeting these businesses, you can tap into a large and diverse market, and expand your reach beyond just the big players in the industry. This can help you grow your business and increase your revenue.
If you're looking for the best types of small businesses, check out our Website Themes for some of the most popular industries to target.
Scale Your Business
Finally, selling websites to small businesses can be a more flexible and scalable business model. As your business grows, you can expand your offerings to include additional services such as SEO, reputation management, social media marketing, and e-commerce solutions. This can help you keep pace with the changing needs of your clients and ensure that your business remains relevant and valuable to them.
In conclusion, selling websites to small businesses has big potential and offers many benefits, including stability, recurring revenue, a wider audience, and scalability. By focusing on a simple, low-cost pricing model and building long-term relationships with a diverse range of small businesses, you can create a successful and sustainable web design business.
Listen to Marcus. Don’t create vulnerabilities in your business. Diversify your revenue!