How to do 'offline' the right way

16 replies
OK.. I've been struggling with posting this tip. But assuming you can actually target proper key words for your clients, actually have seo skills that work, etc, and that your aren't simply a bargain-basement amature webmaster with some basic SEO and IM awareness, then here we go...

I've been doing something along the same lines as this 'offline' thing for
a while.. but, among other things, there's one very important thing I do very differently then most of you.

Let's say you are really good at selling this, and you land 100 clients in your first year.

And let's say you charge them $500.

So, 100 clients x $500 = $50,000 that year.

The next year?

Assuming:
1) you aren't burned out
2) there's still business available in your town/city

Well, you will have to bust your hump even harder to try and sell some more..

Heck - let's be honest here: you really start from zero again every month.
You made 4k this month? great - but you're sitting on a big fat goose egg
when the next month rolls around. Have you ever seen the movie 'ground hogs day'? well, you'll be living it..

You can now probably guess what i do differently

In this scenerio, I would charge a recurring $39 per month instead a 1 time fee of $500 (or roughly divide your fee by 12)

100 clients @ $39/month = $46,800 PER YEAR.

When the second year rolls around, I'd still have $3,900 every month coming in even if I do not get any more clients.

I have clients sign an intitial 1 year contract, and then it's just
month-to-month, no contract, after that.

So in that second year, you are not starting over. You've actualy built a business, and one which you can continue to build vs treading water every month.

Plus, you can actually take time off, vacations, etc
#offline
  • Profile picture of the author markwinder
    Jason - way to take advantage of the recurring revenue model in the off-line world. I'm also guessing that your clients are LOVING the significantly reduced monthly rate that just floats out of their account, as opposed to a larger chunk of $500 (I'm guessing this is just an example figure, but the concept is sound).

    Do you meet resistance when you have to surcharge a customer for work over an above the terms of the agreement? I've found in previous months that customers tend to think they get the sun, the moon and the stars when they pay a retainer like that - and get miffed when you ask for additional payment for "outside of scope" work.

    Great reminder of a rock-solid concept tho!

    - Mark.
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    • Profile picture of the author jasonl70
      Originally Posted by markwinder View Post


      Do you meet resistance when you have to surcharge a customer for work over an above the terms of the agreement? I've found in previous months that customers tend to think they get the sun, the moon and the stars when they pay a retainer like that - and get miffed when you ask for additional payment for "outside of scope" work.
      yeah, that can be a problem.

      I have to make it very clear that anything beyond basic maintenance (changing phone numbers, etc) and minor changes (copy/paste content) is billable. I eventually had my own basic cms system I put together so clients could edit their own content (to a point)... I'm now considering using wordpress in the future for this.
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      -Jason

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      • Profile picture of the author JohnMcCabe
        Reminds me of something an old boss used to say...

        "The good news is, you just sold your best prospect. The bad news is, you just lost your best prospect."

        I've been going on an annual contract, but in today's economy going to a monthly retainer makes more sense. It helps even out the cash flow for both parties.
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      • Profile picture of the author Scott Burton
        Originally Posted by jasonl70 View Post

        yeah, that can be a problem.

        I have to make it very clear that anything beyond basic maintenance (changing phone numbers, etc) and minor changes (copy/paste content) is billable. I eventually had my own basic cms system I put together so clients could edit their own content (to a point)... I'm now considering using wordpress in the future for this.
        This is when it pays to have a solid contract which spells out what is covered.

        In some fields, Support or Service Agreements are the norm. In return for a monthly check of xxx.xx, the service provider would provide up to x hours of updates, maintenance, etc. Anything beyond the x included hours would be billed at a rate of xx.xx per hour.

        Instead of hours it could be x number of content updates, or any number of other units of measure.

        If the client wants a graphic redesign (some of them may after a while), and this isn't covered in the service agreement, then it can be billed out to them.

        A good contract is worth a lot. Of course goodwill of your customers is often worth more.
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        - = Signature on Vacation = -
        (We all need a break from what we do for a living. I thought it was time my signature got a break too)

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  • Profile picture of the author markwinder
    Good points Jason - setting expectations is KEY! A lot of companies miss that one out!

    And great point John - I have to say, reading your post reminded me of a couple of sales jobs I had... where I'd work my tail off to get a new customer, and then I'd never see the customer again - until (of course) they called me complaining about a service issue... But it was really tough never being able to (officially) communicate with my customers - to grow their business. Instead it was "move on"... oh - and I also experienced the "joy" of starting from ground zero EVERY first of the month... few things are more demoralizing....
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  • Profile picture of the author Marcus Paul
    Interestingly I have found that my clients are usually not once and done. I usually pound home the content development model and how it helps dominate rankings. Once they start to see results (more visitors, leads, sales) they continue to retain me for content dev and link-building.

    I charge a price per page. This includes writing, optimizing, publishing to website, then link building to it. They usually buy 1-3 pages a month.

    I enjoy the monthly recurring model as well!
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  • Profile picture of the author chrisnegro
    Nice business model to follow....the key (in my opinion) is to get in front of a group of business owners ...talk about SEO/KEYWORDS...and then MASS OFFER this service all at once...rather than giving the same speel OVER AND OVER again everytime you meet a business owner.

    Specifically, pitch this deal (in front of 100 targeted business owners) and tell them you are only taking on 25 new clients at $50 per month. This would mean $1,250 per month or $500 one time fee versus the $600 total over one year ! Just an idea...and obviously you can play with the numbers. The KEY THOUGH is getting to present to a large number of people.

    Chris Negro
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    • Profile picture of the author scottparat
      Great idea Jason, one way to keep the initial cost down....especially in today's economic climate.

      I've been "playing" with offline customers for a while now. I have health issues that prevent me from soliciting and doing sales calls......so I basically deal with people who know me or word of mouth.

      I've always wanted to ramp things up and if I ever get better, I will really attact offline marketing.

      One of my big issues are "fees". I'd like to get a handle on what offline marketers charge and what they provide.

      For instance, would you care to explain what you provide for your $500 package or was that just an example? I'm just trying to get a handle on pricing, I know it will fluctuate but I'm curious to see what others are charging.

      Thanks for your input

      Scott
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      • Profile picture of the author AndrewCavanagh
        I would strongly suggest that your fees are just WAY too low.

        Sure it makes sense to get your first 2 or 3 clients at whatever fee you can get for the experience.

        But after your first 5 or 6 clients you should really be charging more...a whole lot more.

        Starting at $1,500 to $5,000+ a project and a monthly maintenance fee of $100 to $500+ will make this business model a whole lot easier for you.

        Generally speaking clients who pay more value your services a whole lot more.

        And you need just a fraction of the clients if you're charging 5 times as much.

        Also you're likely to take the time to do a really great job if you're getting paid what you see as a substantial fee.

        Finally the real money in the offline business model is not so much in new clients but in getting your existing clients to hire you for project after project.

        If you're genuinely helping business owners make money they WILL hire you over and over to implement any idea you suggest that gets them excited.



        So my 2 bottom line suggestions:

        # 1: Charge more. In the $1,500 to $5,000+ range per project plus $100 to $500+ a month for maintenance.

        # 2: Help business owners really make money from your work and get hired over and over by the same businesses for project after project.

        Kindest regards,
        Andrew Cavanagh
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  • Profile picture of the author jasonl70
    scott -

    that price was just an example...

    regarding the sales aspects:

    I'm getting ready to 'overhaul' my business, and I came to the conclusion I needed to hire a 'real' sales person. So I hooked up with someone who had experience going into businesses and selling face-to-face with them, and asked if was interested in selling for me (for a cut of the fee's). his reply was "F@#$ yes!".
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    -Jason

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  • Profile picture of the author Tom Dean
    I'm now considering using wordpress in the future for this.
    I have had some good results using wordpress. I use wordpress almost exclusively for clients who do not want to pay a monthly maintenance fee other than hosting/domain. Those who want to add their own content ect.

    It has also helped in the sale of sites due to its ease of use.

    The package includes videos of how to manage their site (a good selling point). The videos are on their server so they can view them anytime.

    If they break something or want a change they can't make they pay by the hour for site updates/changes.

    These have proved to be very popular with teachers, and especially families who want to have their own family site where other family members can contribute. Video showing others how to register and post text and pictures is provided.

    For instance with wordpress the user can upload a file or pdf of whatever and put a link to it in a post or sidebar widget right from the admin panel (popular with teachers).

    Fee for these types of sites run about $500 w/monthly hosting at 9.95 & domain management at $40 yearly for private registration. If they want a themed site w/graphic work like Americana or Country they go for $750. Most graphics come from istockphoto.

    Many want a picture gallery. I use a wp theme for pictures and put it on a subdomain for another $250. Password protection is also a good seller and often requested. Another $50 for an entrance page and password protecting a folder.

    Typically it adds up to a little over $1,000 by time were done plus the monthly hosting and yearly domain management.

    Frankly I was surprised at the number of request for these sites. Most were from word of mouth thanks to the first site I built for a family. The Mom was very involved with the school thus the teacher inquiries.

    Most of the sales come from families with some disposable income.

    Just a few ideas outside the small business owner market.

    Tom
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  • Profile picture of the author jasonl70
    Andrew-

    The fee's I quoted were just an example, based on what I see a lot of people here talking about charging I agree - most of them WAY UNDERVALUE their work, and seem afraid to charge market rates.
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    -Jason

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  • Profile picture of the author Joseph Then
    What I did for my rates is that I give my clients 40%-50% discount for one-time setup fee, discount for monthly fee. But they are required to sign up under a contract for one year.

    It's something like an OTO in the offline world.

    That allows them to grab the offer because it's a steep discount and yet they know at the back of their mind that your original price is $2000-$4000.

    You should get a lot of new clients in this manner.

    Once the year is up, you upsell your package at 30% discount, or whatever. As long as they see the calculated returns in their investment, they will continue to sign up with you.

    Pretty much like what mobile phone services company do today...
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    • Profile picture of the author a2dsilva
      Originally Posted by jasonl70 View Post


      In this scenerio, I would charge a recurring $39 per month instead a 1 time fee of $500 (or roughly divide your fee by 12)

      100 clients @ $39/month = $46,800 PER YEAR.
      jason, what do you include in the $39/month? I ask because I just launch a program for Real Estate Investors but am not sure how to justify the monthly fee.

      So far I am justifying it by saying:
      1. Covers hosting the site
      2. Minor changes like phone numbers or email address
      3. ...?
      4. ...?

      Note: this package does not include an autoresponder. Just a two page site (lead gen page and About Us) built with wordpress and a contact form on the bottom that sends a lead to the investor. I am charging $500. It's a standard template. The only thing they can change is a horizontal header image.
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      • Profile picture of the author a2dsilva
        Originally Posted by Joseph Then View Post

        What I did for my rates is that I give my clients 40%-50% discount for one-time setup fee, discount for monthly fee. But they are required to sign up under a contract for one year.

        It's something like an OTO in the offline world.

        That allows them to grab the offer because it's a steep discount and yet they know at the back of their mind that your original price is $2000-$4000.

        You should get a lot of new clients in this manner.

        Once the year is up, you upsell your package at 30% discount, or whatever. As long as they see the calculated returns in their investment, they will continue to sign up with you.

        Pretty much like what mobile phone services company do today...
        Joseph, I am not a fan of discounting my prices but what I will offer is a choice of two packages. A Basic and Premium (Basic plus Bonus). My expereience is that the Premium is often taken 90% of the time.

        Example:

        Basic Package
        Website with 3 pages and an autoresponder series (client writes autoresponder content and submits to me to send): $100/month

        Premium Package
        Website with 3 pages and an autoresponder series (client provides me an idea of what they would like to communicate to customer and I WRITE [or my copywriter] the email series): $160/month
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      • Profile picture of the author jasonl70
        Originally Posted by a2dsilva View Post

        jason, what do you include in the $39/month? I ask because I just launch a program for Real Estate Investors but am not sure how to justify the monthly fee.

        So far I am justifying it by saying:
        1. Covers hosting the site
        2. Minor changes like phone numbers or email address
        3. ...?
        4. ...?

        Note: this package does not include an autoresponder. Just a two page site (lead gen page and About Us) built with wordpress and a contact form on the bottom that sends a lead to the investor. I am charging $500. It's a standard template. The only thing they can change is a horizontal header image.
        Honestly, that about covers it I put together my own simple content management system, so they can log on and edit their content (like one would with wordpress).. this way they can maintain a specials page on their own.
        I only did that so i don't need to be tied to my computer on maintenance... if you use a cms system, or wordpress, you could tell them they can email you any changes to the content and you will update the site as required - this is not very time consuming when it's a simple copy/paste and minor formatting (vs editing html and ftp'ing files).
        As you can see, I'm doing everything I can to get away from simply trading my time for money

        here's something else I've done..

        I'll remove all contact info from headers/footers, and put it on a seperate page. Any traffic to that page is a conversion - which I report.

        For example, I can point out that last month 62 people requested their phone number, 58 people requested the map/directions, etc. I've even put MY OWN tracking 1-800 phone number on the site (that simply forwarded to the clients phone #), and would forward the reports to the client every month to show them how many calls they got from their site.

        Of course, you want to make sure they actually get traffic if you go down this path

        I got these ideas from the autotrader.com rep for my families car dealership. He comes in every month with a performance report of how many leads, phonecalls, etc, they've provided the dealership.

        He's actually the guy I'm bringing on to handle sales for me He's used to getting face-to-face with businesses and selling web related services (dealerships pay a minimum of $1700/month to autotrader.com, so he's not afraid to ask for money!)
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        -Jason

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