Pricing Structure for David Preston's Offline Cash Cow? $1000, $2000, $5000!?

[sashagilberg]

Hey,

I've been doing my research in regards to creating my own offline cash cow business and for now I think I've got a pretty good grasp on everything.

However I'm not sure what type of prices I should charge for my services to B&M business owners.

I've listed the main services I'll be doing below:

Prices:
-Build basic website: Going rate on eLance x2 (about $1000?)
-Improve existing site conversion rate through split testing: $495
-PPC advertising:
Setup campaign: $395
Maintain campaign: $199/month
Click costs: Client pays Google the exact amount
-Build basic WP site to get ranked high for natural search: $1000
-Setup autoresponder: $299
-Maintain autoresponder: $199/month
-1-on-1 consultation: $199/hour
- Hosting: hostgator affiliate link

Now I just made up these prices from the top of my head, what do you guys think about them?

[sashagilberg]

If you're doing this service, but for whatever reason don't want to state how much you charge to everyone, feel free to PM me - will be much appreciated.

thanks in advance!

[sashagilberg]

I'm sure some of you guys are already doing this, but I had a good idea of things to add to the service and that's:

- product/event launch: $1000 + 10% profits
- consultation: first 30 minutes free, then $200/hour. Key here is to tell them just enough to crave more info in the first 30 minutes, then after that teach them how to do something. I think this would be useful for business owners who want to do the IM work themselves rather than pay you to do it.

[sashagilberg]

Originally Posted by TheToolWiz

I don't know where you got those numbers, but they're really whacky. What's wrong with what was originally suggested?

I just made up those figures because I'm not sure what the going rate is, although from the research I've done so far I've got a better idea now.

I missed the main cash cow thread so I never really knew what was originally suggested. If you know I'd love to hear.

What comes to mind here is that you seem to have no experience in any of these areas. So why in the world would you try to sell your services?

if you DID have experience in these areas, you'd have an idea of what to charge.

I've been in the IM industry for over 2 years now so I know how to do the things I mentioned, regardless of how much of a newbie I look right now haha!

But I am a newbie in regards to the ideas mentioned in the cash cow thread, so I am learning right now. I've got a much better idea of what's involved now and am just a step away from beginning cold calls and sending mail outs.

Either you're going to be doing sales, or doing the work. Personally I suggest you focus on one or the other. If you're doing sales, find some people you can hire to do this stuff, and base your fees on what THEY charge you plus a mark-up.

Just my $0.02 worth.

You're totally right, that's my plan.

[mpeters7]

Hey Alex,
Your thought process should be centered around the value you'll provide. The power in this business is by providing a personal, customized solution to each business...you want to be a consultant and not just another web designer.

Spend time developing a rapport with each prospective client. Try to find out what they spend their current ad budget on and how much. Then try and figure out how many new customers, repeat customers, and total sales you can bring in with your process. Walk through this process with the business owner and make your fees a small percentage, say 10%, of the new revenue you'll bring in, and explain it that way. EDIT: Don't make guarantees, but describe it as likely or potential revenue.

This way you're providing more value than what you're charging, and it's obvious that you're doing just that.

Plus you'll find different markets bear different prices.

[AndrewCavanagh]

The question of charging gets asked a lot by people starting out selling their internet marketing services to local business owners.

I've generally been telling people who start out that they can charge somewhere between $1,500 and $6,000 for a basic 2-6 page website plus $100 to $500 a month for maintenance.

To set up an email autoresponder you could charge $500 to $2,000+ for the initial setup plus $100 to $1,000+ for monthly maintenance.

For an online video creation service you might charge between $500 to $2,500+ for setup plus $100 to $1,000+ per video (depending on how much production you do and what the video is worth to your client).

There are some very good reason I don't list services with fixed prices...and I don't think you should either.

And it goes to the heart of what you SHOULD be doing when you talk to business owners.

Many people would like a fixed price that they could quote to everyone they talk to.

And the reason is so they can go in, talk to a business owner, SELL that service and get out as quickly as possible with a check.

If you're thinking that way you are screwing up big time.

Your whole mindset is based around what YOU can GET instead of being based around what you can GIVE to a business...how you can help a business owner get what HE wants out of his business.

How you can customize a solution that helps him increase his sales and profits and get him the results in his business that he's looking for.

Talking with business owners is NOT about selling them on some pre-conceived idea you have of how you can help them.

It's a process of discovery where you ASK QUESTIONS and think of ways to help improve the marketing process in that business.

Every business is different and the solutions you come up with will be different based on the unique business situation and your unique skill set.

You probably won't recommend SEO if you're an expert at pay per click marketing for example.

With your skillset you're far more likely to see how pay per click can help a business.

But the biggest mistake people make with this is seeing themselves as a SELLER of fixed services instead of seeing themselves as the creator of unique internet marketing solutions.

This whole process is about building relationships with business owners.

When you build those relationships you'll get hired or you'll get referrals.

And there is no place in this process for the hard sell.

Suggest enough ideas and solutions designed specifically for the business you're looking at and you will get hired sooner or later.

But stop thinking of this whole operation as cookie cutter selling.

You're a consultant and a service provider.

You need to think that way and charge that way.

Every solution is different...every price is different.

Kindest regards,
Andrew Cavanagh

[Sacha Sargoni]

It also depends on your location, you cant charge a florest in NYC the same as a florest in say Billings Montana.

[TimCastleman]

And that ladies and gentleman is why I can't recommend any higher reading Andrews post on talking with business owners any higher.

We don't agree on how to get our foot in the door but we both have the same thoughts about helping a business owner above yourself.

Like Zig says - you can get anything you want in life by helping others get what they want.