The following insight came from my podcast interview with David Ledgerwood, where he talked about things to know when you create content.
In services businesses do not apply to your SaaS business. There are other metrics. But in a services business b2b, you’re going to find right around that 500,000 revenue point, on average, could flex up and down, you’re going to find that the things you were doing to get there are no longer going to help you scale and grow revenue.
The reason is that up till that point you were able to do this thing. And I know, everybody who’s being honest, that runs a sales or services business, or has bought from one has seen this abject lie. We customize every proposal, but every engagement is different.
We don’t have a cookie-cutter approach. That’s great, but that will only get you to a certain point as a service provider. At that point, you need to, then, analyze all the things that you have been doing that you do regularly. You have to figure out the 80%. Those 80% things ought to be divided out into a package scenario. I love the three package vibe; you got your good, better, best recommended. Everybody has seen a pricing page that looks like that; you should make your service into that thing.
Then you got another 10% of the services. Sometimes people want this stuff. It’s a little bit more money, and it doesn’t fit exactly into a package. But let’s make that an add-on. So now you have a menu that has the most of your services, your main courses, and how you deliver them. You have side items if you want to. Pretty normal disposition there. So there’s your next 10%.
The final 10% is that weird stuff that people walk in the door, and they say, “I want you to do this thing. I want all that other stuff. But I also want you to do this weird thing that you have never done before.” And that’s great. That is an option for your business, you can bring that back, and you can say, “do we want to develop this weird thing that is not in the other 90%, but we can charge a lot of money for it?” Does it fit into that passion statement if you can plausibly say this is a place you might want to advance your business? Charge that customer for a lot of money. Three, four, five, or six times as much as they should be, because they want it and build it out in a way that you can then have either a new add on or have a new component that you are going to go back and upsell to all your other customers and increase your package capability. So by doing the same thing over and over again, there are myriad benefits to the business.