At 24, I Quit My Dead-End Restaurant Job and Launched a SAT Test Prep Company

Starting a new business can instantly change the trajectory of one’s life. For this entrepreneur, quitting his dead-end restaurant job and launching a SAT test prep company was a significant turning point that catapulted his career path. The business was going well, but the challenges of preparing students for a comprehensive exam left him wondering if there was a more flexible and financially rewarding option out there.

Two primary objectives dominated his thoughts:

a) Work remotely and have more freedom; and
b) earn more money in less time.

It was a few weeks of contemplation before he realized that creating a basic website could be the game-changer. But it was just half the battle. He opened an account on Elance, wondering how he could stand out in the crowded marketplace, considering there were over 200,000 other freelance designers competing against him, most of whom were more skilled.

Outsourcing remains one of the considerable challenges facing Americans in the growing international workforce. Someone with a comparable skill set is always willing to do the same work as you for far less. So he couldn’t compete with their low fees due to monthly bills.

Then, he came up with a game plan to become a premium service provider. Mercedes Benz, a luxury brand, charges $80,000 for an E-Class, and no one bats an eye. To justify their price point, they provide their customers with ridiculous customer service. The entrepreneur planned to operate in the same bracket.

However, he wasn’t sure if he could achieve that on Elance but hoped for the best. So he tested his assumptions to find out what his successful competitors did to stand out in the crowd and completely obliterate them by being ridiculously over-prepared.

Setting up the Test

The entrepreneur designed a test to answer two primary questions:

a) What strategies did his successful competitors use to stand out in the crowd?
b) How could he completely obliterate them by being ridiculously over-prepared?

He used Elance to test his assumptions. He set up a dummy account in order to create a fake posting looking for web developers. This was done to find out exactly what types of proposals other developers were submitting. He strategically put up a high-budget price point to attract the best possible candidates. He included a clear list of his needs and the range of skill sets required to do the job, looking for applicants with identical credentials to see what he was up against.

He received 71 proposals from all over the world within 30 minutes, suggesting that each applicant had a 1.4% chance of being hired. After examining the proposals, he observed a considerable imbalance between the people applying for jobs and those doing the hiring.

Native English-speaking Americans do mostly all the hiring, while other countries do almost all the labor due to lower rates. The American freelancers miss out on jobs as their rates are naturally higher due to the cost of living. The entrepreneur found out that there was resistance to hiring higher-priced Americans but a willingness to work with them. So he sought ways to make price a non-issue.

Reading the Proposals

The entrepreneur started by identifying Sponsored Proposals as freelancers who pay to show their bids. They were making a small investment by doing so, making them stand out among the hundreds of proposals submitted. He also checked for how interesting the copy/pitch was in the first few lines. It helped if they were among the first twenty applicants, enabling him to narrow down the proposals he read.

Based on his observations, he was now more confident about creating his game plan to become a premium service provider.

Becoming a Premium Service Provider

To achieve this status, he had to take the following steps:

1. Create a Professional Looking Profile

The entrepreneur created a professional-looking profile, complete with his biography, education, skills, and certifications. He added a professional photograph and a Relevance Score, indicating his credibility and expertise status on Elance. He also listed several clients he worked for and the favorable reviews he received.

2. Outsmart the Competition

He began by outsmarting the competition through how he wrote his proposal. Instead of starting with a brief introduction, he went straight to assessing his client’s needs from their job description, highlighting the challenges they were facing. He then suggested a game plan to tackle their challenges and how his unique skills make him the best candidate for the job. In other words, he wasn’t selling just his services, but his solutions.

3. Don’t Compete on Price

The entrepreneur didn’t compete on price. Instead, he assessed the value of his services and delivered excellent work. He ensured that his clients saw that the quality of his work was worth the price they paid. The idea was to assure them that they were not just buying website design services but a partner who had their best interests at heart.

4. Communication

He ensured that communication was a top priority. He emphasized the importance of regular check-ins with clients to avoid misunderstandings and delays. He kept clients updated about the progress of their projects throughout the engagement process.

5. Effective Time Management

He managed time effectively, ensuring that he delivered quality work promptly. He never missed deadlines as it would damage his client relationships.

Final Thoughts

Becoming a premium service provider isn’t an easy task, but it’s doable. It requires outsmarting the competition, creating a professional-looking profile, communicating effectively, managing time effectively, and most importantly, delivering quality work. By following these steps, one can attract high-paying clients while significantly enhancing their brand’s visibility and credibility.