When you?re building your transformational business, there are 4 Profit Models that you can adopt that all work.

When you?re building your transformational business, there are 4 Profit Models that you can adopt that all work.

However, each of them has pros and cons. Some of them can be scaled to seven figures, and some can?t. They take different skill sets, so they may not be the right choice for you.

There are also common mistakes people make in choosing one of the Profit Models, and you?ll want to be wary of those.

Which Profit Model is right for you?? Let?s find out!

Profit Model 1: The Solo Model??

In this Profit Model, you?re either just starting out, or you?ve made a considered decision to keep your company small and lean. You?re providing the coaching, consulting, or healing services personally.

How you get paid: By people who want your 1-1 services

Pros:
– Lower costs & expenses
Cons:
– You?re on the hook for everything. If you?re not delivering the service, it?s not happening

Creating success with this model:?
– You need a Signature System, so some of your expertise is delivered via automated training
– Save your time by outsourcing your admin & customer support
– Stay profitable by keeping your rates high and be protective of your time.

Profit Model 2: The Associate Model

In this Profit Model, you have a Signature System that you deliver, and your clients work privately with associates of yours. These could be full-time employees, or contractors whom you have trained in your methods.

You may lead group events or online calls, and your associates then work with your clients 1-1. When your business reaches a point where you have sufficient volume to support this, it?s a great model.

How you get paid: you market, you sell, and you deliver only a small part of the services

Example: BizClub (see coachwithpamela.com)

Pros:
– Moderate costs & expenses, you don?t deliver private (1-1) but often do high-level group work

Cons:?
– Depending on structure, you must both pay and rely on team
– You must have a list, or other pool of potential clients to have a big enough group to make this work financially

Creating success with this model:?
– Good management skills for both team and clients will keep the model running smoothly. At larger levels, a good manager or COO is needed.

You need an established curriculum or method of providing transformation, so the associates are all working from the same playbook and your work feels congruent to clients.

Profit Model 3: The Certification Model

The Certification Model differs from the Associate Model in this way: with certification, once you certify someone to deliver your transformation, they are on their own. They usually find their own clients, they are responsible to the clients, and you?re not involved.

How you get paid: you tend not to make money from the services themselves. You make money from certifying others to provide those services.

Example:?Eden Energy Medicine certification

Pros:
– Often low costs & expenses after you create the certification program that you offer to others.

Cons:?
– Your brand is represented by certified practitioners, and you either need to manage that or know that some people may hurt your brand.

Usually certification can only be sold after you have proven success using your transformation and building your business around that. In other words, people only want to certify with you if they believe it will bring them success.

Creating success with this model:?
– You need to be willing to release control around your brand, and the results people get working with your certified partners/practitioners.

You need to have had enough success with another model (solo, associate, agency) that people want to be certified by you and see that as a path to their success.

Profit Model 4: The Agency Model

With this model, you make money offering Done-For-You services to clients, most of which are fulfilled by team.?

Examples:?

Web design firm
Digital marketing firm

While you can start an agency with just yourself, the real leverage in an agency comes when others (your team) is doing the work for the clients.

How you get paid:?

People pay for outcomes and deliverables. This is different from the Associate Model, because in the Associate that model people are paying for training and coaching, not deliverables like a website, or advertising.

Example:?Attract Clients Online (attractclientsonline.com, digital agency)

Pros:?
– You?re building a company that won?t rely on you to run it (eventually). It may also be saleable and should be built that way.

Cons:?
– High costs & expenses in keeping a team to provide the DFY (done-for-you) work
– Setting expectations with clients, so they are pleased with your work, is a skill set

Creating success with this model:?
– Set up systems so that your team is all working in the same way, for efficiency.
– Make sure you?re charging enough to pay your team, and still have enough left over for yourself (after all – you?re
running the team!)

So which one is right for you? You may start with one, and then shift as your business grows. Being clear on where you?re going helps you get the right pieces in place!

Want to make sure you?ve got the right pieces in place for your chosen model??Grab a call with a coach!