#729 What is the Michael Jordan of Business Models?
Nov 23, 2023
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Explore the concept of the greatest business model of all time, recurring revenue, and its impact on branding. Learn about the profitability of certification businesses and the success story of Patty. Discover the value of certifications in certain professions and indulge in book recommendations for the holiday season.
Certification businesses offer brand power and legitimacy while generating recurring revenue, providing a win-win scenario for clients and the business.
Combining a certification model with a course offering can provide an effective educational pathway and elevate an industry.
Deep dives
The Power of Certification Business Models
Certification businesses offer brand power and legitimacy while generating recurring revenue. By certifying individuals or companies, certification businesses provide a framework and assessment process that allows clients to generate more revenue or advance their careers. For example, the Professional Association of Diving Instructors (PADI) certifies scuba divers and dive shops worldwide, creating a network of trusted professionals and safe diving practices. Similar certification models are seen in the coaching and therapy industries, such as Scaling Up and Internal Family Systems (IFS), where certified practitioners are listed in directories and can attract clients through brand legitimacy. Certification businesses create a win-win scenario, as clients receive the credibility and leads associated with certification, while the business generates recurring revenue and builds its brand.
Opportunities for Certification Business Models
The certification business model offers various opportunities for industries seeking to establish credibility and attract clients. From brokerage firms to coaching programs, certification can enhance reputation and provide a framework for success. Marketplaces like Empire Flippers can create a certified broker program, guaranteeing quality service to buyers and sellers, while giving certified brokers access to leads and expanding the marketplace's reach. Training courses like DC Scale can also leverage certification to provide a structured curriculum and exclusive community for members, giving them a recognized credential and access to valuable expertise. By creating certification programs and communities, businesses can elevate their industry, increase credibility, and attract qualified professionals.
The Benefits of Certification Model and Course Combinations
Combining a certification model with a course offering can provide an effective educational pathway for individuals and businesses. While group coaching programs like DC Scale may have limitations in terms of individual implementation, offering courses that provide a comprehensive framework and education can be highly effective. Certification can then be obtained by individuals who successfully complete the course, ensuring they have the knowledge and skills necessary to implement the concepts effectively. By offering certification and course programs, businesses can cater to different levels of expertise and provide a clear progression path for learners, while also building a community of certified professionals who can refer clients to each other.
Exploring the Rise of Super Consultants
The rise of super consultants, individuals making significant incomes while working fewer hours, can be attributed, in part, to certifications. As the demand for specialized knowledge and expertise grows, certified individuals are positioned to command higher fees and attract premium clients. By leveraging certifications and focusing on expert-level consulting, professionals can differentiate themselves and provide value that justifies their high fees. Offering certifications in niche areas can help professionals enter this lucrative market and establish themselves as go-to experts with a track record of success.
(00:00:45) Intro
(00:03:11) What do you think of our vacation policy?
(00:05:01) The GOAT business model with extremely high margins
(00:09:08) The businesses doing this amazingly well
(00:32:11) Why now is the best time to implement this strategy
(00:42:00) Two books you should read over the holiday
Past guests on TMBA include Cal Newport, David Heinemeier Hannson, Seth Godin, Ricardo Semler, Noah Kagan, Rob Walling, Jay Clouse, Einar Vollset, Sam Dogan, Gino Wickam, James Clear, Jodie Cook, Mark Webster, Steph Smith, Taylor Pearson, Tommy Griffith, Justin Tan, Matt Gartland, Travis Jamison, Ayman Al-Abdullah, Tynan, Lucy Bella Simkins, Brian Balfour, Nick Huber, Dana Lindahl, Anthony Fasano, Adam Palmeter
