The Entrepreneur Forum | Financial Freedom | Starting a Business | Motivation | Money | Success

Welcome to the only entrepreneur forum dedicated to building life-changing wealth.

Build a Fastlane business. Earn real financial freedom. Join free.

Join over 80,000 entrepreneurs who have rejected the paradigm of mediocrity and said "NO!" to underpaid jobs, ascetic frugality, and suffocating savings rituals— learn how to build a Fastlane business that pays both freedom and lifestyle affluence.

Free registration at the forum removes this block.

Lead Generation Webdesign Business

MichelCheret

New Contributor
User Power
Value/Post Ratio
140%
Nov 15, 2020
5
7
Hi,
I’ve read the Millionaire fastlane multiple times and can’t get enough of it. March 2020 I’ve decided to buy a dog and listen to MJ’s audiobooks while walking my dog, which are even more revealing for me. Thanks MJ! Thanks to this book I’ve decided to start my own business in Webdesign, because I got sick of working for employers.

In 2017 I decided to work as a freelance IT Engineer and thought that this was freedom, this book thought me otherwise and I started to explore other possibilities. In July 2020 I’ve bought a domain name called websiteoffertes.nl (lead generation business for Webdesigners) from a marketing agency.

The Marketing Agency owner advised me to really be groundbreaking and not ask per lead, but a fixed price per month (€25 to €50). In the meantime I hired someone for marketing (freelance) and someone for development (also freelance), while I am focussed on defining my vision and sales. At this moment I gathered 53 webdesigners, who are paying from €25 to €50 a month. I made a deal with one of the biggest hosting companies here in the Netherlands, who will send me leads. I sell these leads to webdesigners and if they win the assignment, they will pay 7 to 10% commission.

We developed a platform, so 90% of the things are automated. Leads go directly to a set of webdesigners (who haven’t responded in a while) and all my customers are very happy with the progress we made so far.
At this moment, the marketeer and developer are still needed. I am making slow but steady progress.
What I find difficult of this business model, is that I have to deal with 53 webdesigners, who are paying €25 to €50 a month.
My biggest competitor has the same amount of webdesigners, but is focussed on asking a fee per lead and per month and as making at least €600 per webdesigner.

My question is: should I switch my model to pay per lead (with a monthly subscription fee) and concentrate on only 12-15 (and later more) webdesigners who generate the same income as 200 would do with my other model? What can you advice?

Thanks!
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.
Last edited:

Fox

Legendary Contributor
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Summit Attendee
Speedway Pass
Forum Sponsor
User Power
Value/Post Ratio
690%
Aug 19, 2015
3,881
26,766
Europe
My biggest competitor has the same amount of webdesigners, but is focussed on asking a fee per lead and per month and as making at least €600 per webdesigner.

My question is: should I switch my model to pay per lead (with a monthly subscription fee) and concentrate on only 12-15 (and later more) webdesigners who generate the same income as 200 would do with my other model? What can you advice?

Hey @MichelCheret - welcome to the forums.

What is holding you back from switching to the other model and testing for a while?

I think having a higher value per web designer/lead is going to help you out a lot with growing/ads/scaling.
 

Andy Black

Help people. Get paid. Help more people.
Staff member
FASTLANE INSIDER
EPIC CONTRIBUTOR
Read Fastlane!
Speedway Pass
User Power
Value/Post Ratio
370%
May 20, 2014
18,566
68,699
Ireland
80/20 springs to mind.
  • Some leads will be worth more than others.
  • Some web designers will be worth more to you than others.
What about chatting with the web designers who are most engaged and try to create bigger win-wins specifically with them? Maybe they pay 5x or 10x what the smaller web design clients pay?

A corollary of the 80/20 rule of thumb is that 20% will pay 5x. Some people reckon 10% will pay 10x.

Remember they’re only rules of thumb, but there’s likely a subset of your market who’ll pay a lot more, and a large subset who won’t. Maybe you cater for both, or test out just the higher price point as @Fox suggested.
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

MichelCheret

New Contributor
User Power
Value/Post Ratio
140%
Nov 15, 2020
5
7
Hi @Fox thank you for your reply. What is holding me back is that I’ve been promoting with the fact that I am doing it different than my competitor. Like a promise to my current customers. Also my platform has just come online (a month) and it feels weird to already switch between models. Maybe I should give it a try.
 

MichelCheret

New Contributor
User Power
Value/Post Ratio
140%
Nov 15, 2020
5
7
80/20 springs to mind.
  • Some leads will be worth more than others.
  • Some web designers will be worth more to you than others.
What about chatting with the web designers who are most engaged and try to create bigger win-wins specifically with them? Maybe they pay 5x or 10x what the smaller web design clients pay?
Thanks for your suggestion, I like that idea, I should give it a try.
Edited: I haven’t read the text what you added later on. I am beginning to see what you mean, I am thinking in possibilities and have some ideas how to implement that. Thank you!
 
Last edited:

MichelCheret

New Contributor
User Power
Value/Post Ratio
140%
Nov 15, 2020
5
7
80/20 springs to mind.
  • Some leads will be worth more than others.
  • Some web designers will be worth more to you than others.
What about chatting with the web designers who are most engaged and try to create bigger win-wins specifically with them? Maybe they pay 5x or 10x what the smaller web design clients pay?

A corollary of the 80/20 rule of thumb is that 20% will pay 5x. Some people reckon 10% will pay 10x.

Remember they’re only rules of thumb, but there’s likely a subset of your market who’ll pay a lot more, and a large subset who won’t. Maybe you cater for both, or test out just the higher price point as @Fox suggested.
@Andy Black @Fox
Allright, I gave it some thought and according to your suggestion, I have come up with the following solution.
The business model for the majority of the people will stay the same, that means that 80% of the people will still pay the same amount of money €25 to €50.
For a select group of 8 to 10 webdesigners (and I have some in mind) I will make an different kind of subscription possible. I haven't figured out the amount, but it will be around €350 a month and is called an Exclusive Subscription. This will mean €2500 to €3500 a month extra on top of my current income. The perks of this subscription are:
  1. Respond to normal and premium leads, without having to wait like everybody else
  2. A maximum of 2 webdesigners per lead are assigned on exclusive leads
  3. No commission on Exclusive leads
  4. Possibility to respond to high-end leads, worth of €10k or more
  5. Sales support 1 hour a month (freelancer I will hire and if they won't use it, I will use him myself)
  6. Respond to Exclusive leads (the exclusive leads will be available to premiums, but with a commission)
 
Dislike ads? Remove them and support the forum: Subscribe to Fastlane Insiders.

Post New Topic

Please SEARCH before posting.
Please select the BEST category.

Post new topic

Guest post submissions offered HERE.

Latest Posts

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Ideas needing execution, more!

Join Fastlane Insiders.

Top