When I was growing up,
they had a saying in business. There’s
the product you market, the product you sell, and the product that makes money. The example was McDonalds which marketed the
Big Mac. When you bought a meal they
would ask “want some fries with that?” They
made almost all of their profit off the coke drinks. At the time it was rumored to be around 90%
profit margin.
In today’s business
you need three products:
The product you market
– your brand, your mantra, your flagship product that everyone wants.
The product that generates
cash—this is basically a service business that pays the bills now.
The product you build
to sell as a business unit later–this is typically a SaaS business model that
provides recurring revenue.
It can be hard to
build a SaaS business when the only thing you are building/selling is the SaaS
product. Consider adding more products around it to make the business easier to
grow.
Best regards,
Hall T.
