Fail Fast and Shift the Model
Correct an unsustainable business model before scale magnifies its flaws
- Difficulty
- Moderate
- Time to result
- ~weeks to results
- Steps
- 6
- Confidence
- 95%
An early business model is a hypothesis that must survive contact with customers, partners, and operating capacity. First, document the model and identify which assumptions break as demand rises. Determine whether the constraint is temporary or structural by projecting staffing, service delivery, incentives, and economics at higher volume. If the model cannot scale sustainably, redesign it around the company’s true focus and the long-term health of every participant. Make the change early, communicate it directly, and accept that some early partners may leave. Then monitor whether the revised model improves capacity, partner outcomes, customer value, and organizational focus. The goal is not constant change; it is decisive correction when evidence shows that preserving the original model would magnify harm.
Origin
Extracted from The Jasmine Star Show. Amanda Tress described changing Faster Way’s original managed-services and commission structure after rapid growth exposed that her team could not scale both the agency and certification businesses simultaneously.
Core principles
- 01Treat the first model as a test rather than a permanent commitment
- 02Use operating constraints as evidence about model viability
- 03Change early when scale will magnify the problem
- 04Optimize for sustainability across the whole ecosystem
- 05Accept limited short-term loss to prevent larger long-term failure
How to run it
- 1
State the Current Model
Write down who pays, who delivers each service, how revenue moves, and what must happen for every participant to succeed. Make hidden assumptions visible.
Pro tip Diagram the model from customer acquisition through fulfillment and retention.
Watch out Do not evaluate a model using revenue alone.
- 2
Locate the Structural Constraint
Find the resource, incentive, or responsibility that becomes increasingly difficult as demand grows. Distinguish a persistent design flaw from a short-lived staffing issue.
Pro tip Ask what would break first if volume doubled next month.
Watch out Hiring more people may postpone rather than solve a structural problem.
- 3
Choose the Strategic Focus
Decide which business or capability the team must prioritize. Remove or redesign obligations that divide scarce attention and delivery capacity.
Pro tip Favor the path that creates sustainable value for customers and partners.
Watch out Trying to scale two incompatible operating models can weaken both.
- 4
Redesign the Economics
Create a structure in which responsibilities, compensation, and support remain workable at greater scale. Model its effects on all participants before implementation.
Pro tip Test best-case, expected, and adverse growth scenarios.
Watch out Do not disguise a one-sided revenue grab as a scalability improvement.
- 5
Own the Change
Tell affected partners what is changing, why the original model failed, and how the new arrangement works. Acknowledge disruption rather than pretending it carries no cost.
Pro tip Give partners a clear transition path and direct access to answers.
Watch out Unexpected changes can damage trust even when the new model is better.
- 6
Verify the New Model
Track capacity, retention, customer success, and partner economics after the shift. Continue iterating if evidence shows the redesigned model has unresolved weaknesses.
Pro tip Set review dates before launching the change.
Watch out A successful rollout does not prove long-term sustainability.
In the wild
The original model let coaches pay for certification, retain 100% commission, and later purchase agency services if they succeeded. Rapid growth revealed that Tress’s team could not scale the agency and certification program simultaneously, so the company shifted its focus toward the certified affiliate coach model. Five or six of roughly 100 early coaches left during the change.
→ The revised structure supported a network that later grew to approximately 2,000 certified coaches.
A hypothetical agency sells unlimited revisions because the promise attracts early customers. As volume grows, revisions consume all production capacity. The founder measures the constraint, replaces unlimited work with defined review rounds and tiered retainers, explains the transition, and accepts limited churn.
→ Delivery becomes predictable and the agency can grow without degrading every client’s service.
Common mistakes
Waiting for Universal Agreement
A necessary model change may still cause some partners to leave. Waiting for unanimous support can allow the structural problem to compound.
Changing Without Evidence
Frequent reactive changes create instability. Leaders should identify a structural constraint and model the consequences before disrupting partners.
Optimizing Only for Company Revenue
A model is not sustainable if it improves company economics while undermining partner or customer success.
Is it for you?
Best for
It is best for young companies receiving enough demand to expose capacity constraints, incentive problems, or weak unit economics.
Not ideal for
It is not ideal when leaders are reacting to temporary noise without evidence that the underlying model is flawed.
From the transcript
“thankfully my team has been willing to iterate very quickly.”
“So we failed fast and filled forward, I think is the expression.”
“The problem became, we didn't have the staff team to scale the agency in addition to scaling the faster way to fat loss certification program.”
From the episode
The FASTer Way to Stand Out In A Saturated Market with Amanda Tress
Amanda Tress