Question on price points
Hello warriors,
I have a question for all of you, it's a bit of both "how much should I charge" and business model question.
Now, I'd like to follow John Durham's business model as he outlined in his pro 90 extreme challenge thread. Charge clients X, give a third to comission based salespeople (both set up and monthly fees) a third to a designer and keep a third for yourself. It sounds great and is easily scalabale, as you can hire all the salespeople you want, as well as designers, and since you aren't doing much if any client word yourself you just focus on the business running.
However I am having problems with price points. I've figured I could offer 3 packages, as well as have custom plan/stand alone services that can be offered if a business owner declines the normalized offers.
So, I going with Website or Google Places, with monthly soe or reviews submissions (legit reviews provided by business owner that I'd distribute to various review sites) at 300 set up, 100 monthly.
Then a web site, google places, email marketing set up, social media set up, with monthly seo and review submissions (but more of both compared to first package) at 600, and 300 monthly.
And third package basically the same as the second, but I'd manage clients social media and email campaigns, and better seo/more reviews submissions, at 600 set up, 700 monthly.
Now the question is, if I give away 1/3 to a salesperson, and want to keep 1/3 for myself, would the remaining 1/3 be enough to hire someone to actually do the services? I am starting to lean towards No.
So, if that's the case, what should I do? Rise my prices? Come up with a different model of compensation for sales people? Keep the same model but lower their comission from 1/3 to say 20%?
I'd appreciate any advise, since the ability to outsource the work and hire more people is what makes this thing scalable, if that can't be done then I'll be limited to 30-50 clients max that I could handle myself.
I have a question for all of you, it's a bit of both "how much should I charge" and business model question.
Now, I'd like to follow John Durham's business model as he outlined in his pro 90 extreme challenge thread. Charge clients X, give a third to comission based salespeople (both set up and monthly fees) a third to a designer and keep a third for yourself. It sounds great and is easily scalabale, as you can hire all the salespeople you want, as well as designers, and since you aren't doing much if any client word yourself you just focus on the business running.
However I am having problems with price points. I've figured I could offer 3 packages, as well as have custom plan/stand alone services that can be offered if a business owner declines the normalized offers.
So, I going with Website or Google Places, with monthly soe or reviews submissions (legit reviews provided by business owner that I'd distribute to various review sites) at 300 set up, 100 monthly.
Then a web site, google places, email marketing set up, social media set up, with monthly seo and review submissions (but more of both compared to first package) at 600, and 300 monthly.
And third package basically the same as the second, but I'd manage clients social media and email campaigns, and better seo/more reviews submissions, at 600 set up, 700 monthly.
Now the question is, if I give away 1/3 to a salesperson, and want to keep 1/3 for myself, would the remaining 1/3 be enough to hire someone to actually do the services? I am starting to lean towards No.
So, if that's the case, what should I do? Rise my prices? Come up with a different model of compensation for sales people? Keep the same model but lower their comission from 1/3 to say 20%?
I'd appreciate any advise, since the ability to outsource the work and hire more people is what makes this thing scalable, if that can't be done then I'll be limited to 30-50 clients max that I could handle myself.