TMBA 311: Productized Part II : ​​"Putting Yourself Out There Can Hurt"

10 comments
TMBA311: Productized Part II : ​​”Putting Yourself Out There Can Hurt” post image

Podcast 26:29| Download | Stitcher | iTunes | Comment

A few weeks ago we spoke with Jeff Pecaro. Jeff is starting a productized service business and he offered to let us follow along with his journey on the show. This week we are catching up with him to find out how his business has progressed and he has managed to weather the storm of some tough criticism.

Transcript

Listen to this week’s show and learn:

  • What happened when Jeff reached out to our audience for anchor clients. (2:51)
  • How Jeff has handled some of the unique challenges that these potential clients have. (3:30)
  • The benefits of taking your business idea to a mastermind. (5:47)
  • Jeff’s thoughts on his mastermind at DCBKK. (6:34)
  • How Jeff handles some harsh criticism from one of our most experienced listeners. (10:45)

Mentioned in the episode:

Enjoyed this podcast? Check out these:

Listening options:


Thanks for listening to our show! We’ll be back next Thursday morning 8AM EST.

Cheers,

Dan & Ian

Published on 11.19.15
  • http://salesability.co Damian Thompson

    Great Episode and Imma Let You Finish but…

    Going to push back on Dan Norris’s faulty Recurring Revenue reasoning.

    His example is bogus; “$1,000 up front & $500 a month for 3 months vs. $200 a month for a lifetime” well of course the lifetime sounds great but give me 2 examples of companies that have that?

    EVERY customer churns eventually, to a competitor or to cancellation.

    Lifetime Value DOES matter.

    Your AVERAGE retention at $70 a month would have to be 36 months to beat the 3 month higher priced example. Or 13 months at $200 a month and VERY few productized service companies are AVERAGING 13 months retention let alone 36.

    There is never “One Way to Rule Them All” when it comes to running a business.

    Here’s an alternative:

    Stop trying to force customers into lifetime subscriptions if what you offer real value on is shorter term. Instead focus on better funnels for lead gen & sales systems to capture more clients.

    Deliver value, charge more, and sell better.

    Is it the only way? Nope not even close. But True MRR in services businesses are a unicorn, so few companies achieve it but everyone espouses it.

    Dan’s right that LTV Machine as currently proposed is NOT a long-term subscription. So? Who Cares? If you offer value for 3 months and can create systems & processes to deliver a high value solution at a premium price, why not just do that again, & again, & again…

  • http://wpcurve.com/ Dan Norris

    Hey DT I’m with you here I think. With services, quite often the LTV would be higher with more up front, no one really does a good job of measuring or understanding churn. But it’s consistency that is the issue here. To me it’s much easier to grow a business that is consistent for so many reasons so the goal for me is to always try to over away from the ‘one off launch’ and ‘maximising sale amount’ mindset to the ‘every month is better than the last mindset’ and you do that by making some sacrifies for up front $ in favour of a more consistent ongoing business.

    I agree there’s no one best way but I find the world seems to be full of the same sort of advice on this topic and I think there is room for an alternative. Particularly on pricing. I’ve been listening to these experts for years go on about increasing prices and very few of them have the sort of business that I would want to create.

    Maybe it’s good advice for Jeff if he only wants to get to $10k / month but really who only wants to get to $10k per month? We are entrepreneurs. We get to 10k and want 100k then we get to 100k and want 1m. It’s who we are.

  • http://salesability.co Damian Thompson

    I actually think we are in the same ballpark on this stuff. I would say that the “business I want to create” is spot on. I LOVE consulting businesses and know of many Million Dollar Plus consulting companies (Hell there are Billion Dollar Consulting Companies). You don’t like them and that’s cool. But saying “Consulting Busineses Suck” is a personal one and shouldn’t be a blanket statement IMO.

  • http://www.funnelengine.com Richard Patey

    Could view the one off / up front setup as 50% LTV and lead gen into a backend low priced MRR product for remaining 50%.

    $2k up front for funnels and then $200/m for support, maintenance & A/B testing is the approach I’m going with. Plus software affiliate checks are nice.

  • http://TheActiveMarketer.com/ Barry Moore

    Great episode. Anyone know the name of Matt Singer’s outsourcing agency (mentioned at time 7:30)?

  • Pat D

    Great episode! Really enjoy the real time discussion and feedback. He mentioned someone in his mastermind who takes products from Kickstarter to Amazon – do you have a link?

  • http://www.tropicalmba.com/ Dan Andrews

    thanks Pat, I believe that was Kiri: https://twitter.com/ilikethatlamp

  • Danny

    I believe this is his website: http://www.madssingers.com

  • http://beanninjas.cmo Ben McAdam

    Love following your story Jeff! Being vulnerable definitely takes guts, and stands out among all the “entre-porn” success stories everywhere else.

    Thanks also to Dan Norris for mentioning Bean Ninjas. I can partially tick off an old goal of “run a business that’s interesting enough to get on TropicalMBA”!

  • http://www.tropicalmba.com/ Dan Andrews

    :D :D :D

Next post: