April 2, 2020
Strategies For Ecommerce Agencies To Build Product

Strategies For Ecommerce Agencies To Build Product


Hey what’s up Kalen here and this video
I want to talk about a strategy that agencies can use that are building
product so you know a lot of times as an e-commerce agency you’re doing services
you’re doing consulting work getting that high at those high ticket projects
but there’s a lot of manual work involved margins are are lower and so
maybe you have an idea for a product that you want to build and you build
something you know on the side or maybe you build something for a client but
you’re able to repurpose it and only IP and things like that but you know the
challenge is that for agencies that whose business model is again those
higher ticket projects for services work it can be hard to get a product off the
ground because you know you know let’s say you’re charging 70 bucks a month or
a hundred bucks a month you got 10 clients it’s a thousand bucks a month
compared to two $300,000 or a hundred thousand dollar builds it’s just really
hard to justify the time spent on that and so I think that a couple I’ve talked
to you know some different agencies that have put out products and had different
levels of success and actually want to do some more in-depth interviews with
with some of those companies but I think one one thing one one thing to do is to
think about how to sort of leverage your product to get you know some PR or
basically to get Magento talking about what you’ve done I think about like I
think gene Commerce has done a good job of that with you know obviously bluefoot
but also like the payment extensions they’ve done recently I saw you know
they were promoted on the Magento blog and stuff like that so if you can find
something to build that you know that Magento will be interested in promoting
or whatever platform you’re on maybe your Magento on another platform you can
build something that the you know the mother ship will want to promote then
you’re getting more bang for your buck like that money you’re putting into the
product maybe you only have a small number of customers in the product
revenue isn’t that meaningful but the you know the buzz that you’re going to
get the PR that you’re going to get from that can be much more meaningful in
terms of driving business too your services which is really you know
your core business model so yeah that can be that can be useful and then also
just you know maybe you dedicate the way you’re dedicating resources you know
maybe you have one one person that works on that product and so you know you’re
not having you know you’re sort of limiting the amount of resources you’re
investing in it and so instead of having your whole team or large numbers of
people maybe there’s just I think a lot a few of the products that come to mind
that came out of agencies you know there’s just sort of one person working
on them and so you know they can just kind of own the whole thing and so if
you can do that that can limit the amount of time that you have to invest
in them and then the other idea is just sort of use them as lead generation for
your services work so you have that product out there that fills a need of
the market you built it for some of your clients you have your clients on it and
then you know you put it out there and then other you know potential clients
start to use it and maybe you have a little bit of branding in there and the
extension and admin interface or maybe used to do some email marketing to them
and you know they’re like wow there’s a great solution really smart the way it
was built and then oh hey here’s this company that built it maybe I could use
them for my next big project or whatever so so yeah it you know if you’re just
looking at the product revenue is going to be peanuts especially early on
compared to your agency revenue so it’s gonna feel like man how can I justify
spending time on this but when you start to line up all the additional side
benefits that you can get through that it might make it easier to really
justify investing the time that you’ll need to invest to really get it off the
ground and then as you are putting more that time and then the product revenue
itself maybe starts to become very significant to where maybe you can put
one person dedicated on that product to develop it or half of that person’s time
and put somebody on marketing that’s I think usually where agencies you know
maybe they’ll dedicate development time but then marketing they’re probably not
going to really push much marketing around it so if you can get to the point
where you can push marketing to it you know then you can probably have a
chance of really getting it off the ground so let me know what you think if
you’re an agency that is has a product or thinking about building a product and
you’d like any you know advice help let me know I’m always interested in kind of
helping to consult around those types of things and yeah if you have any
questions comments post them up we’d love to hear from you and thanks for
watching

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