Today, on Hubstaff’s Agency Advantage Podcast, I’m talking with Justin McGill of LeadFuze who shares why he left behind a $360,000 a year service business to go all-in on a product.
Justin launched his first agency back in 2008 and built it into a 7-figure agency. Along the way he had his first idea for a software product. Thinking it was his million-dollar idea, he poured 10 months and $60,000 in development to launch the product, but the launch fell flat.
For his second startup, he wanted to do things the right way, and that’s how LeadFuze came about. LeadFuze started as a productized service agency that eventually released software tools for users who wanted to take a do-it-yourself approach. Business was going great, but Justin knew he needed more focus, so when the service side was doing $30k a month, he decided to shut it down and go all-in on the software, even though that side was only making $6k a month.
Since then, Justin has had his share of ups and downs, but today the business is bigger than before and the growth doesn’t show any signs of slowing down.
In our interview, Justin shares why he decided to shut down the profitable service business, the difference between selling software and selling services, and how agency owners can make the transition into products.
If you’re drawn to the software business like so many agency owners but need help finding the balance between your clients and your new project, then this is the episode for you.