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To Offline folks -Initial Consultation Free or You Charge?

by blissk
20 replies
I have my first two local small business prospects (accountant and real estate) that I will be meeting up this month that I am offering a free initial consultation. I already have a solid plan on what packages I am going to pitch to them and the price.

Should I have charged for this initial consultation? Wondering how you folks are doing this and which one is a better approach. From the offline WSOs I am getting a mixed bag of recommendations - some charge for initial consultation and some say offer initial consultation for free. Which one has worked for you guys?

Would love to hear your thoughts.

Thanks,
-Anand
#charge #consultation #folks #free #initial #offline
  • Profile picture of the author marketingva
    Hi,

    Some of my clients have done well with charging for the initial consult and then applying that fee against any services package purchased.

    I offer a free consult for my part but because it's free so many people feel comfortable rescheduling, not calling in at all, etc. It's a pain.

    Bonnie
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    • Profile picture of the author dtendrich
      Hey,

      I agree with Bonnie - people can not take you as seriously when you offer a free consultation. So, here's another option...

      If you're meeting them locally - charge them like $15 ahead of time via Paypal - then tell them when you meet in person you'll show up with their $15.

      If they're not local - then have them prepay the 15 bucks, then tell them you'll refund them after your meeting.

      Best of luck!
      David
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      • Profile picture of the author blissk
        Bonnie/David,

        Thanks for your responses.
        So far I am leaning towards giving free consults initially and once I have few clients - charge them for it. If they sign on then apply against services they sign on.

        David - I like the Paypal idea for the deposit - thanks for the tidbit!
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  • Profile picture of the author Kelly Verge
    For me it depends on the prospect.

    If I get the feel that they are likely just feeling me out or looking for a plan that they can follow themselves, I charge. If they seem to be serious, I don't.
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  • Profile picture of the author Dennis Gaskill
    Personally, when I worked the offline angle I always gave a free consultation. It's not like you're fixing their problems and making their business better by explaining what you can do for them.

    As far as being taken seriously goes, if you know your business and can answer their questions satisfactorily you'll be taken seriously whether you charge or not. If you can't answer their questions satisfactorily, charging them isn't going to change the impression you give them.

    When you have so much business that you don't need any more, then you might give a consultation free if you contact them and are trying to win their business, and charge a small fee if they contact you.

    I'll tell you what though...if you charge a fee just to talk to someone you'll lose potential business. When I call a plumber I want a free estimate. Same with any kind of repairman, insurance agent, etc. If someone doesn't give me a free estimate I'll call someone else. You ain't the only game in town.

    So it comes down to this...do you want to collect big fees or small consultation fees?
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  • Profile picture of the author sdentrepreneur
    I provide free one hour consultations, then charge $125 an hour for consulting and between $500 to $2,500 per month depending on project.
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    • Profile picture of the author Gene.Gerwin
      I've managed somewhere between 100 and 200 appointment setting projects for consultants and vendors of all stripes since 1993. None of my clients ever charged for an initial consultation. If anything, they did their best to offer their prospects something of real value in exchange for their time.
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      • Profile picture of the author blissk
        Kelly/Dennis/James/Gene - Thanks for the responses!

        So looks like overwhelming majority of you recommend free initial consult. This makes sense.

        Do you share all the gold nuggets that would benefit their business or stick to 2-3 pointers that they would see immediate results? And then reveal more once they sign on?

        -Anand
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  • Profile picture of the author Nic Lynn
    Definitely go with free consultation. Even if they were trying to tap your expertise so that they could run with it, they never will. They have neither the time or the skill.

    Anyway, in that initial consultation you should not dive into specifics or tactics. For example do not start by telling them: "These 3 things will help you: 1. build a google business listing, 2. optimize your keywords, 3. blah blah blah!"

    You start by asking them questions. About their business. About their goals. About their marketing. About their competition. Then once they answer those you can start addressing their actual business requirements in terms of how you can help them with internet marketing by creating leads, making sure people can find them and creating deeper customer relationships, etc.
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  • Profile picture of the author joshril
    As mentioned by several people above, I will also agree that there is nothing wrong with a free consultation, and if you don't offer one, you'll miss out on potential business. However, I think you can use much better wording... I prefer to call it a complimentary marketing strategy session.

    It's the same thing, but it definitely sounds a lot more valuable. "Free consultation" has been overdone and for some people does have a negative connotation.

    Additionally, you should not do any selling during the first meeting. You can't make a diagnosis if you don't know what the problem is... I find that many people go in trying to tell business owners what they can do for them without truly understanding the business owner's NEEDS.
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  • Profile picture of the author Andyhenry
    What Josh said....

    Do it free as you need to prove you know your stuff and you can set up a much better value for your work once you've shown you can help.
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  • Profile picture of the author coach
    The primary purpose of an free consultation is to demonstrate your expertise so they have confidence to hire you. I prefer to do this with a case study provided by video before I meet the client. The video offers an initial strategy session to create an action plan. This positions the meeting differently and puts the client in a "action" frame of mind.
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    • Profile picture of the author AndrewCavanagh
      You can do both...charge for an initial fee and provide it free.

      If you're charging real money for some of your consultations that gives you better posture (people who pay for your advice are more likely to listen to it and they're more likely to spend more money with you on a service).

      Also if you're charging then you can have paying clients give away gift consultations to business owners they know.

      Those consultations will have real perceived value because your clients and the referrals will know you do genuinely charge.

      If you're charging for an initial consultation you can take that charge off the first full project you do for a client (or not).

      If you charge for consultations you may decrease your prospect base but increase the quality of prospects you talk to.



      If it is your practice to give the first consultation free (a good strategy too) you should be sure to establish the dollar value of that consultation before you'll see a prospect.

      You don't want prospects thinking that because a consultation is free there must be something cheap or dodgy about your service.

      They should be thrilled that they're getting a $150-$1,500 consult as a gift.



      The bottom line is it doesn't really matter.

      If you're doing a lot of consultations...free or paid...you're going to end up with paying clients.

      When you're starting out your goal should usually be to talk to as many business owners as possible for as long as possible.

      Kindest regards,
      Andrew Cavanagh
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      • Profile picture of the author blissk
        Andrew/Coach,

        Thanks for the feedback.

        Thanks for the pointer about establishing dollar value if giving free consultation.

        Have 2 presentations this month (free) - will see how they go!

        -Anand
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        • Profile picture of the author LaunchGal
          A lot of good advice here!

          I think a free consultation is a good way to go, as long as you have vetted the prospect.

          One question that works for me is "Do you have a set marketing/advertising budget? or something like that. If a company doesn't have a budget identified [which doesn't mean they don't spend money on this, but rather that it is probably smaller and less well thought out and planned for] then there is a good chance they are not a good prospect for me.
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  • Profile picture of the author Andy Fletcher
    I'm always happy to offer the first consultation free of charge (although it's usually about techology/management rather than marketing but the approach applies whatever the field). But I make sure at the end of the first hour I make it clear that any further consultations are chargeable and the appropriate rates involved.

    Serious business people understand that other people's time/skill is very valuable and it cuts down on the number of people who think that "first consultation free" means "ring me for a chat whenever you need help".
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    • Profile picture of the author David Chambless
      My first meeting with a new prospect is always a free one. Local B&M business owners
      tend to have a hard time paying for "intangible" services, like consulting and such.
      So until you've convinced them of the value of your services, "free"
      is usually a tough enough sell.

      I likewise emphasize the value of the time I spend in the meeting. This is a good way to build credibility and a sense of real value in my work.

      But the truth of the matter is the interview is a two way street. The prospect is
      deciding whether or not to hire me, and I'm deciding if I want him as a client or not, so free seems fair.

      Now when somebody calls for help with a specific task or problem, like a critique or
      some brainstorming help, then my hourly rate kicks in.

      David
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