How can you start a service-based company at zero investment?

Starting a business? Well, there are many small companies as well as large companies that are well-established in the market. Competing with these companies is not going to be as easy.

Looking at the current situation, almost everyone wants to start their own company. One of the problems of any startup business is to compete with established companies in the market. People have the idea to start a business but the main problem is investing money to start one.

One has to know about what their visions and goals are. Without knowing what business to get into, it’s going to be really tough to travel ahead and reach the destination.

This article gives information on commission based resources that help in starting a business without investing capital.

What is a commission-based payment?

Commission-based payment is a process of paying less than the amount taken from the client for hiring a developer for the project.

Suppose, a company takes a project from a client. And what that company does is that it hires a freelancer for the project. The freelancer has a fixed rate. But the company takes more money from the clients which is more than the amount required to hire a freelancer. And the company gives the required amount to the freelancer which is less than the amount taken from the client. In this process, the company gains a certain amount of money as a commission without anyone noticing.

How does commission-based payment works?

Let’s understand this with an example, let’s say the company takes $500 from the clients to hire a freelancer to complete the project. But the fixed rate of the freelancer is $300. The company hires that particular freelancer for $300 and $200 becomes extra profit or we can say commission for the company. This extra amount is taken by the company without anyone noticing. This way it helps any company to functions its operations smoothly. If the freelancers are satisfied, this can lead the freelancer to be dedicated to working with the company in the future too. And the commissioned money can also be used in building an in-house development team for the company.

This is how commission-based payments work for the company and help in operating its functions smoothly.

Benefits of commission-based payment

Commission-based payment has its own benefits. It is the company’s decisions on whether to hire an employee who is paid based on the sales commission. So, here are some of the benefits of commission-based payments.

1. Low cost to hire a freelancer

Freelancers can be hired at a low cost to complete the project. The company can hire freelancers at a low price against the cost taken from the clients to hire a developer for the project.

2. Expenses reduction

It helps in reducing the expenses of the company. Instead of hiring an in-house employee, a remote worker can be hired. It helps in reducing expenses like transportation costs, food, hospital, etc.

3. Helps in customer satisfaction

Starting a business is all about satisfying the customers. Hiring a skilled and experienced freelancer can help in finishing the project on time. Project finished on time means customer satisfaction.

4. Profitable

One of the benefits of commission-based payment is that it is profitable for the company. Since the freelancer works remotely, the company does not have to worry about the expenses. It is a win situation for the company since it profits the company.

5. Good relationship with clients and freelancers

It helps in building a good relationship with the client as well as with the freelancer. Completion of the project satisfies clients and payment helps to satisfy the freelancer. This can help to have a good relationship with the client as well as with freelancers.

6. Steps towards building a team

It can be a step towards building a team for the company. Since the company needs to hire freelancers for completing the projects, it can hire the same freelancers. This can help the company to recruit and build a remote team. As well as helps in building an in-house team for the company.

7. Too many options

Another benefit is that the company has many options to choose from. There are many websites like Upwork, Fiverr, Freelancer, etc that helps in finding freelancers. There are too many options to choose from. These sites help in finding good freelancers for the projects

Drawbacks of commission-based payment

Commission-based payment does not have only benefits but also has some of the drawbacks. So, here are some of the drawbacks of a commission:

1. Risk of freelancer raising the cost

One of the drawbacks is that the freelancer might raise the cost once the development process starts. This increases the expenses of the company.

2. Risk of freelancer disappearing

The freelancer might runway in the middle of the project or after the payment. This can be a critical situation for the company. As a new developer must be hired and has to cover the expenses for hiring by the company itself.

3. Increase in expenses

The company expenses increases if the freelancer raises the cost or runaway in the middle of the project or runaway after the payment. This increases the cost of hiring another developer for the project. Another problem can be payment issues. If the remote worker is from abroad, the company might have to incur the cost of international bank transfers.

4. Misunderstandings

Misunderstandings can arise when working with remote workers. Lack of communication tools can result in misunderstandings and thus the project can derail from its track. In the absence of clear instructions, misunderstandings also arises.

5. Low-quality work

Low-quality work can be another drawback. Many freelancers attract many clients at a low rate. So, this results in low-quality work by freelancers. But it does not mean there are any good freelancers out there. So, go for quality when hiring a freelancer.

6. Deadline problems

It is unknown whether the freelancer the company is hiring has other projects in hand or not. The freelancer might be working on multiple projects. This can prevent the company’s project to be completed before the deadline. Sometimes problems in their life can also halt the project. As a result, project deadlines are missed.


If there are problems, then there are solutions to those problems too. Problems never last long. So here are some of the solutions to those problems.

1. Hire a reliable freelancer

One should be aware of the problems that might occur when hiring a freelancer. If possible the company should hire someone that it knows or hire someone who is recommended by the person it knows well. This can help the company to avoid the risk of freelancer raising the cost or disappearing in the middle of the project or after the payment.

2. Communication tools

Misunderstandings can prevent a project to be complete. So misunderstandings must be avoided at any cost. The use of proper communication tools can help in collaborating with remote workers. So, the company should research and plan thoroughly to choose the best communication tools to interact with remote workers. This helps in keeping the track of the project as well as remote workers. This also helps to develop the software within the deadline.

3. Focus on quality

The most important goal for any business is customer satisfaction. This can only be achieved when clients are provided with quality software products. So, to develop a quality software product, skilled and quality developers are needed. So, the company should focus on quality rather than price when hiring freelancers. This helps in developing quality software products within the deadline.

4. Project management tools

Project management tools are important to keep the project on the right track. Different project management tools are available online that helps in tracking the projects, efficient task management, team workflow, etc. The use of project management tools is a must for any company.

How commission-based payments help to build a team?

Building a team is one of the main objectives of any business. Without a team, the business cannot grow. The business needs to have a good reliable team to complete the project. Having reliable teams helps in completion of the project before the deadline and have quality software development process and products.

As mentioned above, in commission-based payment a company hires a freelancer to complete the projects. For any business, it is crucial for businesses either to have an in-house development team or hire freelancers to complete the project. If the company decides to hire freelancers to complete the project, then it can help the company to recruit the same freelancers and build a good relationship with them. It also helps in reducing expenses. For any freelancers, getting their own fixed rate is a win situation for them. This can help freelancers to work with the company in the future too. This helps freelancers to expect more projects in the future from the company that hired them. This way a remote team can also be built.

The remote team can be hired at a low cost against the agreement made with the client. Such saved cost can also be used to build an in-house development team if the company need one.

How a startup benefits from commission-based payment?

A startup is a newly formed business with its own missions, visions, and goals. Every business is formed to achieve its goals and objectives. For any startup business, capital is needed. But the concept of investing capital to start a business is not necessary now. Without any capital investment, a business can be started. There are many businesses such as blogging, affiliate marketing, video blogging, freelancing, etc does not need any capital investment.

Commission-based payment can help in starting a business without investing capital as well as build a team for your business. In this commission-based payment, the company hires the freelancer, in return the company gains commission from hiring the freelancers. Here are some of the benefits of commission-based payment for any startups:

  • Commission-based business prevents any business from incurring extra expenses.
  • It helps with the client’s satisfaction.
  • It helps in building good relationships with the clients as well as with the freelancers.
  • The freelancers can be available anytime if a good relationship is built with them.
  • Working with the same freelancers continuously can help in building a remote team.
  • It helps to invest in developing an in-house team, pay for the business extra expenses such as internet bills, electricity bills, etc.

Commission-based payment is one of the best decisions for any startup. It not only helps to run the startup smoothly but also helps any startup to grow gradually. Rather it helps any business to grow.

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