Digital marketing is a service business which have equal relation between man power and clients. I started a service business with four people. Currently we’ve over six clients. The challenge I’m facing now is scaling up the business. Let’s say you start a mobile app business with two people and you get over 1 million users. Then you got rich. But when talking about service business, it’s totally different from product business. If you want 1 million clients, you have to hire about 1 millions employee. So it’s hard to compare with service and product business. We can only increase the client volume double of current status, which means we could only accept about 10 clients which current human resources. Therefore the challenge is how to scale up service business.
Raising service price
The first solution should be raising service price. You can raise your service price depending on the quality you can promise. However it’s too competitive to raise the price. You’ve lots of competitors, you can’t raise much or they will go away. Instead of having five clients which give you 100 USD, it’s better having a client which gives you 1000 USD. You know the best how much your service should be. But in starting up period, you can’t get such big value client. You will have to start with cheap clients and then only after passing at least six months, you can find expensive clients.
Stepping into product business
It depends on you if you want to expand your service business by adding more employee meanwhile raising value of the service or stepping on product making business.