1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

$5,000 Per Month - Recurring Subscription Business

Discussion in 'Black Hat SEO' started by SERP, Jun 17, 2016.

  1. SERP

    SERP BANNED BANNED

    Joined:
    May 22, 2016
    Messages:
    47
    Likes Received:
    5
    Gender:
    Female
    I'm looking to venture in to a "Monthly Recurring" business model where a service will be sold for a price that will be billed once monthly to the client. It's a proven business model if the right service(s) are being offered and if you're able to put your service(s) in front of the right buyers. However, I'm having a bit of an issue.

    I'm not looking to sell a product, I'm selling a "service". Predominantly, I'm looking to go after a very "targeted" group of prospects, clients in a very "small" niche. However, I'm having difficulty with niche/industry selection.

    What I'd like to do is create a service that would sell for $99 per month with a goal of signing up 50 clients. Of course, my service will need to be worth this price but assuming that it is, attaining the clients will not be an easy task (Or maybe it will be?). Assuming I'm able to put my service in front of the eyes of 100 targeted users per day, based on various threads I've read here, I should be able to achieve between 1-3 "paid" sign-ups per day.

    Now, should I build my business model on the "Let the service sell itself" mentality? If the service is exceptional and provides "value" to the client that they believe is worth more to them then $99, I shouldn't have an issue with attaining my 50 monthly clients within a couple of months should I?

    Are there things that I'm not thinking of here? What's your input/advice?

    By no means am I looking to be "spoon fed" here, I'm not an idiot and this is not my first venture/business. It is however my first venture in to this business model.

    Looking forward to your responses.
     
    • Thanks Thanks x 1
  2. Anonymously

    Anonymously Jr. VIP Jr. VIP

    Joined:
    Apr 23, 2016
    Messages:
    410
    Likes Received:
    119
    Home Page:
    You have a good understanding of the recurring payment model. Matter of fact, I prefer it to over any other business model and a lot of businesses are switching to this model, and those that can't wish they could.

    Businesses offering their services here on BHW use this model as well. Hosting providers, keyword trackers, and backlink checkers are just a few examples of businesses that use this model.

    What you want is not only offer this service with a recurring pricing model, you want it automatized as well, so you can focus exclusively on marketing and customer support. The most important question here is: what service am I going to offer? Am I going to start a competing businesses in a direction that is already established is guaranteed to bring clients, or am I going to start something that is unique? The latter is far more difficult, although setting up either isn't easy at all.

    Whatever you choose, it is likely that you need a starting investment. Goodluck.
     
    • Thanks Thanks x 2
  3. SERP

    SERP BANNED BANNED

    Joined:
    May 22, 2016
    Messages:
    47
    Likes Received:
    5
    Gender:
    Female
    A starting investment isn't an issue, however, I'm not prepared to make an investment in the $x,xxx range though I don't believe I'd need to either. Here's my current thought process:

    Example A :

    Target Prospect - Restaurant Owners

    Service - $99 Per Month

    Includes a website design for their restaurant along with a Facebook page (If they don't already have one). The website design is included with their first months payment of $99. They will continue to pay $99 per month for hosting, maintenance on their site (If needed/requested) and local SEO for their business. Selling point here is that with our local SEO, we will drive you more then $99 worth of business per month.

    Example B:

    Target Prospect - Dentists (Ones that have their "own" practice or office)

    Service - $99 Per Month

    Includes a website design for their office/clinic along with a Facebook page (If they don't already have one). The website design is included with their first months payment of $99. They will continue to pay $99 per month for hosting, maintenance on their site (If needed/requested) and local SEO for their business. Selling point here is that with our local SEO, we will drive patients to their clinic which would obviously equate to much more then the monthly service fee.

    Let me know what your thoughts are!
     
    • Thanks Thanks x 1
  4. Jobdollarr

    Jobdollarr Supreme Member

    Joined:
    Dec 12, 2014
    Messages:
    1,403
    Likes Received:
    169
    Occupation:
    Webmaster
    Location:
    USA
    Home Page:
    Sell wordpress theme with an update.

    Some people sell things like this. With the update fixes.

    The problem is, if you are selling a service you have to run the bot.

    So that your efforts will be much lighter than you did manual.

    1 order could spend 5 hours, if it is done manually
     
  5. iwantl00t

    iwantl00t Junior Member

    Joined:
    Dec 16, 2008
    Messages:
    129
    Likes Received:
    51
    Just going off your examples - local businesses get constantly contacted by companies that can create them a better website, improve their SEO, drive sales, leads, etc ...
    • How are you going to retain the customers so that they continue paying 99/month - contracts? Incentives (example: sign up for 3 months get 1 free)
    • How are you going to show your clients ROI? REAL ROI ...not just "Hey look - I sent 100 people to your website ...I'm sure one of them came to visit your office."
    • How did you come up with 99/month? Is that what other companies are charging for the same services? Is the 99/month a 'one size fits all'? Or just because 5000/month is the goal?
    Business owners have overhead ...they gotta pay people, pay rent, pay this, pay that...not easy to get them to separate with their money ...maybe for a month or two but then what?

    Struggling with picking a niche? Like Anonymously said - plenty of recurring subscription services available on BHW ...check em out. Get inspiration. Take notes. Take action.

    Research the market (does it make sense to get even started with the niche?) and research my competition. Looks good? There is room for me to make money? Set it up. Throw some targeted traffic at it. Analyze. Optimize. Repeat until profit. Automate and take a step back. Start a new service. Repeat.
     
  6. Anonymously

    Anonymously Jr. VIP Jr. VIP

    Joined:
    Apr 23, 2016
    Messages:
    410
    Likes Received:
    119
    Home Page:
    So a full online business package basically for building an online presence. Not the worst idea and it's a good start, especially if you're on a budget. Speaking from experience, having worked closely with someone that did this, there are a few things that you should know: 1) You will have a lot of competitors, 2) The success of this business approach all comes down to how well you are at marketing, 3) I think you should primarily focus on word of mouth marketing so that your first clients know you personally and trust while you build up a portfolio, 4) Forum posts and other SEO strategies should be your secondary focus, 5) You will have to have a very appealing website where people get a good overview what you can do for them, and they should be able to order your services separately (so, for example, only SEO if they already have a website), 6) You don't need a big budget at all for this. On the contrary, you should devote a lot of time into this and not seek paid forms of marketing your business, and 7) This approach cannot be automatized, but it's a good start regardless.

    So how good are you at SEO? Can you guarantee your clients to rank a medium-competitive keyword? If so, what would be your approach (in general terms)?
     
  7. xplosiv

    xplosiv Power Member

    Joined:
    Oct 18, 2014
    Messages:
    523
    Likes Received:
    118
    I would agree with the commenters above, selling SEO/web design to local businesses is extremely difficult. Retaining clients through comprehensive reporting is a task in itself, not mentioning setting up a website properly and doing SEO on it.
     
  8. janeeth20

    janeeth20 Registered Member

    Joined:
    Mar 21, 2016
    Messages:
    89
    Likes Received:
    29
    why would you focus on SEO? i think you have much better chance with something else, like financial service or investment, though you need real startup capital for this imo
     
  9. rubbishhorse

    rubbishhorse Newbie

    Joined:
    Apr 23, 2014
    Messages:
    11
    Likes Received:
    2
    I wouldn't limit myself to one target market. I've had some success offering a similar package but with a larger "set up" cost and a smaller monthly service charge. By far the biggest way of getting new customers for me is by giving my current clients a £100 bounty if they recommend me to another business. This is the easiest way to get new clients for me and I can absorb it by having a higher set up fee.

    This wouldn't be easy to do however if you limited yourself to one niche market though as clients would be unlikely to recommend you to their competition (unless you were really shit!)
     
  10. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

    Joined:
    Mar 10, 2010
    Messages:
    15,896
    Likes Received:
    29,210
    Occupation:
    I don't actually have a job
    Location:
    Not England
    Home Page:
    OP, a 99.00 a month recurring where you are hands on is almost certainly not how you want to build a business. The business model of recurring payments is a solid one at the core, but for 99.00 a month you need to have an automated process.

    By automated I mean that 90% of the work in the business is 100% hands off and the balance is you working with your clients and I know that can't happen with SEO/Websites for local businesses and certainly not at a 99.00 price point.

    If you are looking at a 5K a month recurring revenue stream, and you are incorporating local SEO/website management, you are looking at no less than 750.00 a month per client to give them any level of service and that would be minimum. @99 bucks you can't give a client much of anything and not operate in the red.

    Raise your standards to a higher average price point and work with fewer clients so you can deliver a quality product and not lose them due to attrition.

    BTW, I own several automated services and do boutique SEO on a local and global basis and even with my automated services the 99.00 number is not a number I would be happy with.

    You are thinking though and that is a huge part of getting the ball rolling.
     
    • Thanks Thanks x 4
  11. Cshark

    Cshark Jr. VIP Jr. VIP Premium Member

    Joined:
    Feb 25, 2011
    Messages:
    1,359
    Likes Received:
    184
    Gender:
    Male
    Occupation:
    Grinding
    Location:
    NYC
    I think you should prioritize customer satisfaction than to find a $99 automated service. But @BassTrackerBoats has offered some solid inputs that you can take into account as you roll.
     
  12. tapioka

    tapioka Junior Member

    Joined:
    Oct 19, 2012
    Messages:
    119
    Likes Received:
    36
    Quite nice question OP. Actually there were so many business idea for this type of business model.

    For example me, myself. In my country I have a content marketing company and guess what? We only have less than 20 clients dealing with us. But our niche quite hard for common people to do it without a good political network since we are doing propaganda for certain political movement, vip, state, in my country.

    The best part is when each of the client pay no less than 15k per month. That's not a big amount at all for them. We've test it for countless of time. :p:p:p. And a friend of mine are doing flower delivery for office. Flower for the office desk. Change for new fresh flower twice a month and that's quite a lot of money.

    Good luck for the new ventures!
     
  13. SERP

    SERP BANNED BANNED

    Joined:
    May 22, 2016
    Messages:
    47
    Likes Received:
    5
    Gender:
    Female
    Great advice, I understand what you're saying in regards to "raising standards" & increasing the price while lowering the number of clients I'm working with. However, I believe that by increasing my monthly price to that amount that it'd make attaining client even more of a task. Furthermore, by clients paying a monthly fee of around $750, naturally, their expectations will be much higher then someone paying $99 per month which may make it much more difficult to maintain a decent client retention rate. The point of me saying this by no means implies that my service wouldn't be held to standards. It does however imply the fact that many business owners & customers may have unrealistic expectations which could pose as an issue when I have properly fulfilled my service for the month and they want to charge back because they didn't receive $10,000 in "new" business for the month from my "marketing" service.

    I'd much rather run in to these kinds of issues with a $99 per month client then a $750 per month client.

    Feel free to correct me if I'm wrong on any of the points I brought up.
     
  14. BassTrackerBoats

    BassTrackerBoats Super Moderator Staff Member Moderator Jr. VIP

    Joined:
    Mar 10, 2010
    Messages:
    15,896
    Likes Received:
    29,210
    Occupation:
    I don't actually have a job
    Location:
    Not England
    Home Page:
    A couple of things come to mind right off.

    1) What can you possibly supply for a hundred dollar bill that will have an effect on their business that would warrant their time to consider using your service and still have a profitable operation?

    2) An extremely low price point is more often kicked to the curb than considered by a business as most businesses understand there are costs for you as the vendor as well.

    I would venture that the client turnover would be high as the effect would be low and I would also bet that you would get more people complaining because their money was not producing anything that made a difference in their operation.

    One other thing to consider also is that is is almost always easier to sell a higher priced product, as long as you are not out of the market price ranges, than it is to sell a cheaper, inferior product.

    I think your issue is not the price point as much as it is in your confidence in what you think you can produce. In general I know what I can produce with my services so I'm comfortable with my pricing but I only got comfortable by testing and working on my own sites to make sure that what I was doing was going to work on almost all sites.
     
    • Thanks Thanks x 2
  15. ppaizon217

    ppaizon217 Regular Member

    Joined:
    Jan 14, 2016
    Messages:
    242
    Likes Received:
    114
    You're crazy. 99 a month for seo services? are you gonna blast links with 5$ fiver gigs? create a fan page and a wp website from a paid template and that's it?
    I've no words.

    First: you must learn what you sell. I hardly believe you've ever ranked 1000+ keywords with 1 single site in the last year for example (that would be the bare minimum).

    Second: price with atleast a 50% margin of profit. That would mean that services start at 1k/m and a minimum of 6 months of contract as there's no safe seo that can grant rankings in lesser time.

    I sincerely hate how people start seo services and such and know nothing at all. You better off offering writing services, as you know how to write, not seo services, if you don't know google's algo
     
  16. SERP

    SERP BANNED BANNED

    Joined:
    May 22, 2016
    Messages:
    47
    Likes Received:
    5
    Gender:
    Female
    I'm not new to SEO, I've done SEO for myself for a few years but only for myself (Not as a service for others). Sure, there are plenty of sites that I've had difficulty with in terms of ranking but I've had plenty of success with other sites as well. Also, no, I would "never" resell Fiverr Gigs. I have my "own" PBN consisting of 60+ sites so there's no reason for me to resell Fiverr Gigs let alone anyone else's service(s). I rather be in complete control of the service in addition to the links that will be built as it'd allows for a better service to be offered.

    I do know how to write but it's not my passion. In my opinion, content writers often times are not paid what they deserve and I'm not going to write 500 word articles for $5.

    I found it a bit comical that you mentioned that I shouldn't offer an SEO service if I don't "know" Google's Algorithm... You do?