Why Selling Websites to SMALL Businesses has BIG Potential

Sep 28,2016 - Would you rather have 5 big web design clients pay you $1,000/mo each? Or would you rather have 50 smaller clients pay you $100/mo each? The idea of getting huge checks every month from just a handful of clients rather than collecting smaller invoices from a larger number of customers may sound appealing at first. But there's a lot more at risk.

On a Season 4 episode of CNBC’s The Profit, billionaire-extraordinaire, Marcus Lemonis, shared a sentiment with Patrick DiLascia, founder of DiLascia, a popular clothing design company in California. After Patrick revealed that his business saw a 33% drop in revenue after one of their clients went out of business, Marcus proclaimed:


“To lose 1/3 of your entire business when 1 account goes out of business is way too vulnerable for any business to be.”

Diversifying and spreading out your revenue across many clients is the key to stability in any business. Savvy business owners would prefer lots of clients who are diverse in type, and who may be individually worth less in revenue, but together are worth much more in stability and longevity, and therefore, revenue as well. In other words, don’t put all your eggs in one basket…or even one-third of your eggs!

How Does This Translate to Your Web Design Business?
The business model that most SiteSwan resellers adopt is to sell simple, affordable websites to a large number of small businesses of every kind. If you are diligent about sticking to a simple, low-cost pricing model that fosters long-term relationships, and acquiring customers over a wide spectrum of small business industries, you’re creating a business that has huge potential for long-term success.

Sometimes you may run into a business owner who has big hopes and dreams, with a big budget to back up those dreams. However, the time and attention it will take to service that client may not be worth it to you, especially if they are going to make up a large part of your business’s revenue, and there is no guarantee of them being around for the long haul.

Listen to Marcus. Don’t create vulnerabilities in your business. Diversify your revenue!