This is a good model for coaches, consultants, and service-based businesses.
SaaS founders, who are already running a startup and struggling to grow it, can also use it.
To put it work, you show the value of the software, tie to your expertise, and bundle it with done for your implementation of the software in your business.
Why does it work?
Because it makes getting value from software and your expertise super easy.
The buyer just has to pay and buy, the software sellers do everything else for them.
Coaches, consultants, and service businesses should build their foundation first. When there is an efficient team in place taking care of sales, customer success, and growth and profitability equation are set, you can kickstart your software business.
This is how Drip built a huge business and sold to lead pages for a lot of zeros as per Drip co-founder. At the time of their launch, they offered to covert their customer’s blog posts into a free email course.
ConvertKit offered free concierge for those looking to move from other email marketing providers. The founder Nathan Barry also offered group coaching elements during the beta. It is a $22 million annual run rate business today.
Ryan Levesque is bundling his Bucket.io quiz and funnel software with his done for you funnel set up, and selling it via free webinars.
Laura Roeder leveraged the success of her social media following and course biz to launch Meet Edgar and took it to Edgar Grew to $150K MRR in 13 Months.
So once you have a base of 30-50,000 email subscribers or $250,000 in annual revenue, you can start on this path.
You can do it earlier but better if you are in a comfortable place money-wise to attempt it. That way you’ll have mind space to focus on growth and build a profitable business.
Your initial base on customers can come from email subscribers and waiting list you build by running a Facebook campaign.
If you start it at a $250,000 annual revenue mark, then you can deploy 50,000 for software biz.
Nathan of ConvertKit started when he hit $250,000 in annual revenue, and deployed $50k first as investment corpus. That was about 6 years back.
And, aim to build a highly efficient biz that does upwards of $250,000/ team member, and plan your product and expansion with this goal in mind.