5 Reasons Why Advice Lines Are so Profitable
The advice line industry is a lucrative business. Consumers today are willing to pay handsomely for all sorts of self-improvement products and services. This trend is also amplified immediately after the winter holidays when people are determined to get on with their New Year’s resolutions.
Billions of dollars’ worth of business are being done over the phone as both consumers and business people alike are aware of the value of information and are willing to pay for it. They also prefer its convenience and flexibility.
Below are five reasons why advice lines are so profitable.
A Growing Market
Given that self-improvement is a $10 billion-plus industry and growing by about 5.6% each year, the opportunity for diversification within the advice line sector also increased. Advice, in this context, can pretty much be comprised of everything from friendship, dating, or parenting consultations; to health, medical, nutritional, financial, legal, or training information, among many others.
A growing market, such as this one, alongside a viable economic model are also the two main characteristics indicative of a successful start-up, says Tim Guleri, venture capitalist, serial entrepreneur, and managing director of Sierra Ventures in San Mateo, California.
Market reach has traditionally been a significant hurdle that early-stage businesses had to overcome. Many companies were within the geographical area that their physical store or office could encompass. With a pay per call advice line service, reach will never be an issue. You will gain access to the entire United States market.
Now, even if the market reach is not an issue, your visibility is. Like any start-up, you will have to work your way up and increase your brand’s recognition through marketing. Luckily, however, PayPerCall.com assists all of its clients with free ongoing one-on-one advertising support.
Brick and mortar workspaces have always put a tremendous strain on start-ups. Having a physical presence implies many costs that add up to a considerable sum that needs to be paid regardless of income. Between the rent, utilities, security, and all sorts of other maintenance costs, an office will do more harm to an advice line business than it would help. Keep in mind that the average office space cost per employee is anywhere in between $100 and $1,000 per month while office furniture and supplies will make up around 10% of your entire budget.
Luckily, however, this business can be practiced from all sorts of different places – such as your home – as that doesn’t add so much to the expense list. Over time, and depending on the exact nature of your advice line, you could expand to dozens of simultaneous phones, in which case, you would probably need an office. But hopefully, by then you will no longer be a start-up.
When it comes to equipment, alone, the average start-up needs to pay between $10,000 and $125,000, right from the bat. But with an advice line service, as it is the case with most other such pay per call line, pretty much all you need is a working phone.
In short, advice lines represent a growing market and a business that requires very little initial investment to set up. What’s more, with PayPerCall.com you will also have access to free advertising support. Check out our Earnings Potential Calculator to see how much you can profit from your advice line.
Also published on Medium.