Selling products or selling services?

As mentioned in the post on the profit model of the website, the online profit model is basically two types. One is to sell things to others, that is, the advertisement or joint plan, and the other is to sell their own things. If the website is to be profitable, it must sell something.

If you choose to sell your own things, in general, you can divide them into two categories, selling products or selling services.

The advantage of selling services is that the startup cost is not high, no need to purchase, no inventory, as long as you have a skill or an employee, you can start.

Selling products usually requires a certain amount of start-up capital, and there must always be goods available for sale. If you are producing your own products, at least invest time to develop and manufacture products. If it is someone else’s product to sell, always have to buy. So the threshold for selling products is slightly higher.

For a long time, selling products has more potential than selling services. Selling services is essentially a sale time, so scalability is limited. If a person can sell a hundred yuan a day, if you want to sell a thousand dollars in turnover, you have to find ten people to complete it in one day, or you have to complete it in ten days. There is basically no way to reduce the time or personnel. Variable cost on.

Selling products is different. Assuming that an employee can process up to 100 orders, shipments, or production jobs in a single day, the cost of processing one product to one hundred is the same. From one piece of sales to one thousand, the number of people who need to increase will not increase linearly. Therefore, selling products can be more stagnant, and there are fewer restrictions on future development.

Where possible, there are two things to consider when selling a service:

1) Selling high-end services

If you have a very specialized skill, try to sell your time to the high-end market instead of treating yourself as a labourer. This high-end service sells not only the time it takes to provide the service, but also all of your experience, college tuition, training, and knowledge.

Just like SEO services, targeting the high-end market is an overall trend for SEO services.

2) Think about whether it is possible to turn services into products

This is going to move a little bit. Sometimes it seems that it can only be a skill that needs to be provided personally, but it can actually be converted into a product. For example, if you are a fitness instructor, besides going directly to teach fitness, is it possible to sell fitness videos and books?

I used to have a client who has been working on a cruise ship for more than a decade, so he knows the inside of the cruise. He wants to open a company and help customers arrange the best travel packages. After talking to him a few times, I suggested that he can write the inside story of the industry he knows as an e-book to sell online.

He knows which route is the most fun, what free things are on board, which rides have the highest actual value, and what the lowest price the service provider can offer. These outsiders don’t know. And the cost of cruise travel often costs thousands of dollars, users don’t care about spending dozens of dollars to buy an insider book, but also save money, but also find the most affordable and fun travel package.

He has been in this industry for a long time. These insiders are taken for granted to him, but they are far from being able to think of ordinary people. He wrote such a book very simple, light and familiar, only 20 pages, sold for 47 dollars, sales are still very good.

Therefore, when considering selling products or selling services, in addition to seeing what you can provide, you should also try to sell products as much as possible.

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