Turn Specialised Skills Into Profits With The SOTOS Business Model
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When I moved to New Zealand in 2019, I wanted to try earning money on the side of my job.
A few of my mates in The Netherlands did odd jobs on the side like painting, carpentry and gardening. They were earning decent money from that. Like an extra €500 on a Saturday.
That sounded both fun and fulfilling. That people would pay for "your" services, not the "company's" services that you happen to be part of.
The only main difference was that they were serving consumers with their side jobs. Like:
- Painting the neighbour's doors
- Renovating the uncle's bathroom
- Planting new bushes in the garden of the mate's cousin
I was a project engineer working on complex projects that would take months to complete. And I couldn't really see how I could earn a quick €500 on a Saturday with those skills. I have always worked on long-term business-to-business projects.
I wonder if more people struggle with this. That they have the desire to start a side business but feel their professional skills are too specialised.
When you're stuck in this situation, it feels frustrating.
You see others successfully running side businesses earning some decent coin. While you're hesitating because your professional expertise seems too complex.
The result of that is not taking any action at all. This means:
- You miss out on extra income that could help with savings or lifestyle improvements
- The longer you wait, the less time you will have due to increasing life responsibilities
- Your specialised skills remain locked within your day job, limiting your growth
Isn’t that a waste?
What if plenty of people want to pay for your skills?
What if you find building something for yourself super fulfilling?
What if you build momentum and your side income exceeds your salary?
Well, I found a simple business model that lets you leverage specialised skills. A high chance it fits your situation too because I used it to earn money on the side in several different ways.
Let’s dive in.
The Service On Top Of Software Business Model
One of the most profitable business models out there is the SaaS model. It’s Software as a Service.
The SaaS model is super profitable for several key reasons:
- Instant online delivery
- High profit margins after initial development
- Serves many customers at minimal extra cost
- Recurring revenue through regular subscriptions
But there's one big problem with building a SaaS business. It's super expensive to build…
You need:
- Software developers to build the product
- Marketing budget to get customers
- Designers to make it look good
- Support staff to help users
And that's just to get started. Most people don't have hundreds of thousands lying around to invest in building software. You can also get investors. But that’s a whole other challenge.
There's a much easier way to profit from software without building it yourself.
It's called the "Service On Top Of Software" (SOTOS) business model.
Instead of building software yourself, you provide a service using existing software platforms and get paid for that.
Here's in short how to start earning with this model:
Pick something you're already good at and enjoy doing. Then find software that helps you deliver that service better. Create a simple offer that solves a specific problem for clients. For example, "I'll design your custom carport in 3D within 5 days for $X". And see if people are willing to pay for it. Start small, deliver great results, and build from there. In that example the service is the 3D drawing and the software the CAD design tool.
Here are some real examples I've profited from myself:
Host people
Software: Airbnb
Service: Host people in your spare room, sleep out or house. You keep the place clean (though you can hire cleaners), welcome guests and help them find nice spots in your area (no need to cook or provide food). Airbnb handles the website and payments while you focus on being a good host.
Income: You earn a big percentage of what guests pay per night. Airbnb takes a small cut.
The Airbnb property I hosted.
3D design
Software: Inventor or Fusion 360
Service: Design steel structures, pipework, carports, tables or whatever else clients want. Create a technical drawing to present to the client. Get approval on the design and let them build it, build it yourself if you have the skills, or outsource the work.
Income: Earn per design or on an hourly rate basis depending on complexity.
A carport design I made for a client.
Project management
Service: Help businesses get their projects organised and streamline team collaboration. All via an online platform everyone can access from their phone or computer.
Income: Charge for initial system setup plus ongoing monthly maintenance and support fees.
Gantt chart for a project I managed.
E-commerce
Software: Shopify or Etsy
Service: Create digital downloads to sell on your own designed website. Lead people to the website via social media.
Income: You make money from each digital product sold. Once created, sell it many times.
My website where I offer a downloadable How-To Guide.
These examples show how flexible this business model is. You can use it in many ways. You don't need to build any software yourself. You're using existing well known platforms to deliver your expertise and earn while doing it.
The best part: in most of these models you can structure it the way that the software handles all the complex stuff. Like websites, payments and sometimes marketing too.
So you can focus on what you're already good at.
By now you might think: "Why would anyone pay me if they can just use the software themselves?"
Here's why clients happily pay for expertise on top of software:
- They want results, not another learning curve. Most people don't have time to master new software.
- They value specialised knowledge. Just like how people hire accountants even though tax software exists.
- They need someone who knows what they're doing. Having access to professional tools doesn't make someone a professional.
Think about it: YouTube has endless free cooking videos. Yet restaurants are always full. People pay for expertise and results, not just access to tools.
Your Skill + Digital Leverage
What I like so much about this business model is that as a one-person or small operation, you can come across to clients as much larger than you are. You look very professional quickly.
Because you’re using the same or similar software as big corporations.
Big investment firms own properties and are on Airbnb; you can be on Airbnb too.
Big corporations use 3D modelling software to make designs; you can use Inventor too.
Big manufacturers use project and staff management software; you can use ClickUp too.
Big retailers use e-commerce websites to sell products worldwide; you can use Shopify too.
If you know how to operate one of these software platforms well and can produce results with them, you will impress clients.
If you don't know how to use a software platform well yet but would like to learn, most software comes with tutorials to help you get good.
A digital tool makes you look professional fast, and generate the trust you need to sell what you offer. I see these tools as digital leverage.
Leverage in short means using tools or resources to multiply your effectiveness and impact.
Digital leverage is about using software to:
- Show professionalism
- Streamline processes
- Improve output quality
- Deliver results faster
- Attract more clients
So, I want you to think about what digital tools you could combine with your professional skills.
For me, it is right now engineering (skill) + AutoCAD and Inventor CAD software (digital tool).
For you, it might be your skill combined with other digital tools to show off your professionalism. Here are some examples:
- Skill + Canva design software: Create sharp-looking proposals with visuals
- Skill + ClickUp project management software: Produce impressive Gantt chart plannings for your projects
- Skill + YouTube: Show your expertise through video content
And the list of combinations goes on.
Remember that the same or similar digital tools the larger companies use are fairly inexpensive these days. Sometimes even free.
Ideally, you know by now which digital tool you will and can use on top of your skill to look highly professional quickly. If you need help deciding on a digital tool to use, search for what other companies use on Google. Watch YouTube videos before committing to a tool. Or even ask AI like ChatGPT for suggestions.
How to structure your whole Service On Top Of Software business for success will be covered in future articles. There are a lot more topics to dive deeper into like pricing, finding clients, and scaling up your operations.
My goal for this article was to show you that your professional skills combined with the right software can create a profitable business. Even if your skills seem too specialised.
If you need help choosing the right software feel free to reach out. I'm happy to help.
Action points
Here are the key steps to get started with a Service On Top Of Software business:
- List your professional skills and pick one you enjoy doing the most
- Research software platforms that could help deliver that skill as a service
- Pick one digital tool and learn it well enough to look professional
- Create a simple, specific offer (what you'll do, for who, in what timeframe)
- Test if people will pay for your service by pitching to potential clients
- Start small with a few clients and deliver great results
- Document your work to show examples to future clients
You don't need to master everything at once. Start with one skill + one software combination and grow from there.