- Will from OS®
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Yo.
When I started freelancing, I wanted to build highly custom portfolio websites for agencies and freelancers. These projects were fun. I enjoyed my clients. But after a few projects, I realised I made a strategic mistake.
Why? The economics didn't work.
Offering highly custom work at prices freelancers could afford created a misalignment. I made growth impossible by offering time-intensive services at prices barely above minimum wage.
The only way to grow was to take on more projects. More projects meant quality slipped. The cycle repeated.
This week I'll show you how to match your customer avatar with the right business model and share my approach moving forward.
Signs you're serving the wrong avatar with the wrong business model:
Your client is super price sensitive
Your clients expectations exceed reality
Your projects consistently run over schedule because clients keep requesting changes
You feel drained after client calls rather than energised
A freelancer paying me $5K to build their website might be spending 50% of their cash on hand. This means they have huge expectations for that $5K. They scrutinise every hour you bill and question your work methods. They tend to scope creep because they're trying to maximise every dollar spent. They make decisions based on short-term costs rather than long-term value.
On the flipside, a recently funded startup sees the $5K as a rounding error. They focus on results rather than questioning your process.
Does this mean we should never serve small businesses?
No. It means the business model needs to match the avatar. Instead of offering highly custom websites, offer more DIY solutions. Think software, templates, and courses. These are easily replicable and bring costs down.
A $20 monthly product removes price sensitivity for the freelancer. They can afford this and understand what they'll get. Their expectations align because emotionally, $20 is nothing to them. Just like $5K is nothing to a funded startup.
So how do we make sure our avatar and business model align?
Alex Hormozi has this useful barbell diagram. On one end you have higher-end customers with bigger budgets. On the other end you have smaller businesses with less available cash. In the middle sits no man's land:
If you choose to serve smaller businesses, sell something that costs you basically zero to deliver. Courses, templates, software all work. An example is Ballpark, an embeddable estimation widget I'm building.
I love working with agencies and freelancers but as we learned, highly custom websites don't make sense. A $20 monthly software that increases leads does. I get to work with people I like while using a business model that supports growth.
On the other end you've got higher-paying customers. If you offer highly custom solutions, this is your area. On the freelance side of my business, I've moved toward working with technology startups.
These clients are awesome to work with and have little price sensitivity. They value expertise over cost, focus on results rather than process, and make decisions based on long-term value.
Our last area is no man's land. This is where I was. Offering highly custom solutions to freelancers and small businesses. Avoid this at all costs.
This is great, but what do we do if we realise we're serving the wrong customer?
You have to make a change.
Analyse your best clients. Look at your top 20%. What industry are they in? How price-sensitive are they? For me, technology startups were least price sensitive and most enjoyable.
Choose your path. Decide between high-end custom or templatised/scalable offerings.
Plant your flag and say no. When the wrong client approaches, say no. Turning down money feels wrong but breaks the cycle.
Use your solopreneur / freelancer advantage. Unlike big companies, taking 2 steps back to move 5 steps forward is easy. I can half my revenue today and still be fine. Take advantage of being small and nimble.
I understand how difficult it feels to turn down work. I feel that pain daily. But staying locked in work that stunts your growth hurts more.
To Recap:
If your clients are extremely price sensitive, expect too much, and drain your energy, you have an alignment issue.
Use the barbell diagram to understand where you sit.
Decide which end of customer you'll target. Avoid the middle at all costs.
Make your change and start saying no.
Keep crushing. Talk soon.
- Will
(P.S. If you found this valuable, share it with a friend ❤️)