How to convince local business owners they need to pay me $2000 / month?

50 replies
I currently offer:
  • Website development (simple wordpress)
  • Unlimited web changes
  • Hosting
  • Social media content, advertising and management
  • Web traffic (writing articles, content syndication)
  • Email marketing to their database

Is $2000 too much to charge?

Do you think they'd be business owners that pay this?

Any advice on our to improve / package my offering would be greatly appreciated.
#business #convince #local #month #owners #pay
  • Profile picture of the author Chris Chicas
    It sounds like you are putting your needs before them.

    Why not offer them something for free first? Let's say you do a simple service for them for free so they can have a look at your skills. Then move on to something they can purchase for a relative low price... and expand from there to upsells and downsells.

    Asking for $2k for your services can work... but why fight an uphills battle?

    My little cousin works at a printing shop. When someone comes in and put in orders, he gives them the upsell to have their website built. $2k checks are handed to him all the time. Why? Because they like his other simpler services while getting to know his skills/ethic, and when they are in need of something more expensive... why not with what is familiar to them?

    Try different approaches/prices... but remember... it's about the customer needs, not yours.
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    • Profile picture of the author echidna
      Originally Posted by Chris Chicas View Post

      It sounds like you are putting your needs before them.

      Why not offer them something for free first? Let's say you do a simple service for them for free so they can have a look at your skills. Then move on to something they can purchase for a relative low price... and expand from there to upsells and downsells.

      Asking for $2k for your services can work... but why fight an uphills battle?

      My little cousin works at a printing shop. When someone comes in and put in orders, he gives them the upsell to have their website built. $2k checks are handed to him all the time. Why? Because they like his other simpler services while getting to know his skills/ethic, and when they are in need of something more expensive... why not with what is familiar to them?

      Try different approaches/prices... but remember... it's about the customer needs, not yours.
      Thanks for the feedback!

      Noted.

      A free strategy consultation before signing up perhaps?

      Or, even offering a free website - then it'll be $2000 per month form there for other services?
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    • Profile picture of the author kilgore
      Originally Posted by Chris Chicas View Post

      It sounds like you are putting your needs before them.
      ^ This exactly.

      When IKEA develops a product, the first thing they start with is a price. Once they have a price point, they figure out what sort of designs, materials, etc. they should use to make the best product they can at that price point (while naturally still making a profit). But the point is they're starting with a price based on their customers' ability to pay, not based on how much they want to make.

      You, on the other hand, seem to have pulled that $2000 without any regard to the customer. In fact, I have no idea why you settled on that figure. Is it actually what you think your target market can afford? Or is it what you want to make? If the latter, I'd reconsider. As Chris Chicas said: it's about the customer's needs, not your own.

      Instead of pulling $2,000 out of thin air, I think you'd be better surveying your target market and determining what they are willing to pay for the kinds of services you can provide. You figure that out by talking to people in your target market and by looking at what your competitors are offering -- and at what price point. Maybe that's $2,000. Maybe that's $20,000. Maybe that's only $200. Then you figure out what you can offer at that price point -- and it had better be better than your competitors! -- that will be enticing enough for your customers to purchase your services. At $20,000/month, all sorts of projects would likely be included. At $200, you'd naturally offer a lot less. And if you don't like the price point of your target market, find another target market: internetsweetie is right that there might be some bigger companies willing to pay more -- though of course, you'd have to deliver more (and be able to convince them that you can!)

      Of course, yet another option would be to just get a job. If you're a good developer, throw your resume on a place like Dice.com and you'll have more recruiters calling you than you want. I haven't been on there in years and I still get multiple contacts a week from people wanting me to apply or 6-figure jobs... Might be an easier route if what you're really about is the money...
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      • Profile picture of the author luketr
        Chris Chicas & kilgore delivering those oft-elusive nuggets of gold on WF.

        It's only worth $2K if:
        1. The business can afford it
        2. $2K leaves them with room for ROI
        3. Your service actually works in generating that ROI

        You could write articles for me and promote to my email list all day long, but if my business has a limited or seasonal market, has a tendency for non-returning/one-time customers (like one of my clients in the travel industry) or a completely offline path to purchase, then your service becomes absolutely worthless. No matter how much time or effort you put in.

        Vet your potential clients before pitching to understand their business, make your pitch personal, explain how your fee is going to work for THEM and actually provide results...then you'll be worth "it" - we just don't know what "it" is yet
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      • Profile picture of the author echidna
        Originally Posted by kilgore View Post

        ^ This exactly.

        When IKEA develops a product, the first thing they start with is a price. Once they have a price point, they figure out what sort of designs, materials, etc. they should use to make the best product they can at that price point (while naturally still making a profit). But the point is they're starting with a price based on their customers' ability to pay, not based on how much they want to make.
        Thank you. This is exactly what I needed to hear!
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        • Profile picture of the author DABK
          The point was: choose the clients that can afford the money you want to charge and make sure you give them a reason to pay you that money.

          Where I am, I can buy anything for a low price or for a high price (I can buy rye bread for $1.39 a pound or $5.89 a pound...

          In every location, if it's large enough, there are several markets... You choose the one you want to play in.

          I go to networking meetings... There's the financial advisor who will manage your money, as long as it's at least $2,000,000 you put in his hands to manage and there are the ones that are happy with you letting them manage $20,000.

          OP, I buy stuff from marketers now and again... I buy when I think what I pay is far less than what I am going to make from what I pay. I'm not unique (in this respect only, of course).

          So, if you go to someone you can convince what you'll give them will produce them $58,000 over the next 6 months, they'll probably pay you $2,000. If you convince them it will make them $1800, they will not. (Put in other numbers if you don't like mine... ).

          Originally Posted by Regional Warrior View Post

          As I said it does not work that way here in OZ they will get 2-3 quotes and take the cheapest plain and simple , there is no such thing as a one call close as it takes 2-3 meetings before they part with there money so totally FOS
          Originally Posted by echidna View Post

          Yep. Spot on.
          Originally Posted by echidna View Post

          Thank you. This is exactly what I needed to hear!
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  • Profile picture of the author quadagon
    Basic marketing is that you have to answer the question WIIFM (what's in it for me).

    So what's in it for your client to pay you 2k a month?

    What makes you worth 2k?
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  • Profile picture of the author Regional Warrior
    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
    Mate really depends where your customers are ! when I live in Rural QLD I charged $900 but I only wanted 4 customers and the biggest part would be cash flow !! but if in a city I would go down a bit as I think you may asking a little too much maybe $1499
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    • Profile picture of the author echidna
      Originally Posted by Regional Warrior View Post

      Mate really depends where your customers are ! when I live in Rural QLD I charged $900 but I only wanted 4 customers and the biggest part would be cash flow !! but if in a city I would go down a bit as I think you may asking a little too much maybe $1499
      Hey mate,

      Thanks for the reply.

      What did you offer for $900?

      And do you still offer it?
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      • Profile picture of the author Regional Warrior
        Originally Posted by echidna View Post

        Hey mate,

        Thanks for the reply.

        What did you offer for $900?

        And do you still offer it?
        All I offered was Website , hosting , FB/YT ( the latter using Hootsuite) now work for a think IT tank in NSW couple of weeks launching a new product for OZ like your tube with out ads
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        • Profile picture of the author echidna
          Originally Posted by Regional Warrior View Post

          All I offered was Website , hosting , FB/YT ( the latter using Hootsuite) now work for a think IT tank in NSW couple of weeks launching a new product for OZ like your tube with out ads
          That's sounds pretty exciting. Anything I can check out now?
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          • Profile picture of the author Regional Warrior
            Originally Posted by echidna View Post

            That's sounds pretty exciting. Anything I can check out now?
            At moment just doing all the promo vids and website, that's one thing I don;t have to outsource lol and as it is online based less crap to deal with, If you need anything else that offer still stands just not tonight lol best PM me if you want to talk
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  • Profile picture of the author internetsweetie
    Hi! I recommend that you focus on businesses that can afford to pay you. It's not your price it's your target market. There is a middle ground - companies that have 1-10 employees with $500k to 1 million dollars in profits each year. Try to find them. Then, make sure what you offer is solutions oriented. Often times when I'm out doing other things, I'll notice that a company may not have a social media presence or a website, etc and I make FREE suggestions to them which opens the relationship and leave your card. Lastly, make sure your website mimics that you are not a solo-reneur but a full size, full service company that can easily command those kinds of fees.
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  • Profile picture of the author internetsweetie
    Consider focusing on web development but not a basic site. You can easily command over $2k -$10k for web development that isnt elementary looking, and THEN once the website is done UPSELL.

    Or, do social media packages (but be sure to highlight results you will help businesses get) and make them commit to a certain number of hours per week for 3 months and command $2k for that, and then upsell. Like say, hey, I can help you with social media content, copy or whatever, too.

    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
    Signature

    Internet Sweetie
    ---

    Freedom from the 9 to 5 can be so sweet.

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    • Profile picture of the author echidna
      Originally Posted by internetsweetie View Post

      Consider focusing on web development but not a basic site. You can easily command over $2k -$10k for web development that isnt elementary looking, and THEN once the website is done UPSELL.

      Or, do social media packages (but be sure to highlight results you will help businesses get) and make them commit to a certain number of hours per week for 3 months and command $2k for that, and then upsell. Like say, hey, I can help you with social media content, copy or whatever, too.
      Thanks. Liking these ideas.

      What would you consider something that isn't elementary looking?
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  • Profile picture of the author SalesGod
    The price doesn't matter, you can charge anything, you can charge 20k if youd like what you need to do is show them how there going to make money. that's all the matters, they'll happily pay you 2k if you show them how your service will make them 10k. I sell to businesses everyday and what I sell is a service and it starts at $3,000 a month. it works because I consistently make my clients 30-40k a month from that investment.


    Now if you cant produce a return on investment then you have a problem and you need to work on that. if you can drive revenue for your client but can show them how during your sales pitch, then you need to work on that. dont listen to anyone saying to lower your price. you need to learn to SELL and you can charge whatever you want. I assume youll be cold calling businesses correct???
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    • Profile picture of the author Regional Warrior
      [DELETED]
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      • Profile picture of the author SalesGod
        Originally Posted by Regional Warrior View Post

        Thought the know it all would stick his nose in This may work in your country numb nuts but where we are no such thing as commission you give the price they say yea or na so you best go back to the SEO thread oh by the way did you find out what it meant? I mean you tell a warrior you could do the work 2K only to asked what was it
        It doesn't matter what country you sell in, the same rules apply. Business owners will invest in programs that make them money. revenue is king.
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  • Profile picture of the author DrForum
    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
    Hi Echidna,
    Asking for such amount can be okay based on the quality of services that you offer. One of the key thing you need to do is showcase to the clients that the amount they are paying you is worth your work. At first, it can be a bit skeptical since people may lack trust in you.
    Think of offering trial versions of the services you mentioned above. Through that period, you will be able to gain and win their trust. I have done before and it truly worked for me. After having enough portfolio of the work you do, things will be okay.
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  • Profile picture of the author SalesGod
    2k a month is an amount you can very easily call up a business and one call close on. Pick up the phone and hang it up 10 minutes later with a larger bank account. can you think of a more efficient way to do it? Heres the only advice you need and believe me im highly experienced in the advice I give out. Get yourself a really good phone script and learn your rebuttals. After that pick up the phone and start calling businesses and don't stop until you close a deal.
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    • Profile picture of the author Regional Warrior
      Originally Posted by SalesGod View Post

      2k a month is an amount you can very easily call up a business and one call close on. Pick up the phone and hang it up 10 minutes later with a larger bank account. can you think of a more efficient way to do it? Heres the only advice you need and believe me im highly experienced in the advice I give out. Get yourself a really good phone script and learn your rebuttals. After that pick up the phone and start calling businesses and don't stop until you close a deal.
      As I said it does not work that way here in OZ they will get 2-3 quotes and take the cheapest plain and simple , there is no such thing as a one call close as it takes 2-3 meetings before they part with there money so totally FOS
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      • Profile picture of the author echidna
        Originally Posted by Regional Warrior View Post

        As I said it does not work that way here in OZ they will get 2-3 quotes and take the cheapest plain and simple , there is no such thing as a one call close as it takes 2-3 meetings before they part with there money so totally FOS
        Yep. Spot on.
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      • Profile picture of the author SalesGod
        Originally Posted by Regional Warrior View Post

        As I said it does not work that way here in OZ they will get 2-3 quotes and take the cheapest plain and simple , there is no such thing as a one call close as it takes 2-3 meetings before they part with there money so totally FOS

        People price shop in every industry. That's why you need to learn to sell your service on value vs price. cheaper isn't always better as a matter a fact its usually the other way around however in your prospects mind all the know is price, so you need to educate them and steer them to the best possible solution for their situation. Price is just a number, its the result your prospect is after. Would you buy a new car strictly based on price? without knowing the mileage, MPG, type of engine, interior, ect...
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      • Profile picture of the author animal44
        Originally Posted by Regional Warrior View Post

        As I said it does not work that way here in OZ they will get 2-3 quotes and take the cheapest plain and simple , there is no such thing as a one call close as it takes 2-3 meetings before they part with there money so totally FOS
        I have Ozzie clients and AFAIK they didn't look elsewhere. They certainly didn't take the cheapest...

        Just take them out for a beer - after a few (dozen) stubbies, they'll sign anything...

        OP: 2k is not a huge amount for the right business. I wouldn't offer free, you attract the wrong sort of client.

        Offer a partial service tied to a subscription or recurring service. e.g. a carpet cleaner does a free clean of one room on condition that if the client is satisfied, then they will signup for a annual service. Always tie free to something paid. If you could send out an email sequence to say 10% of their client base, that brings in more than your fee, then you'll be on to a winner... Then you charge normal rates to roll it out to their whole customer base...

        Services like unlimited website changes are pretty much worthless - few businesses update their website regularly. And websites are a commodity, unless you have some sort of spectacular USP/VP - if you build it (a website) first, and it brings in many more hungry customers than their existing website, then you'll have little trouble selling it. Look at making the client some money quickly and without any effort and you'll have a client for life...

        I'd also forget cold calling. You need to build trust to get large fees. You can't do this by cold calling... Focus on becoming a known expert in your community...
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      • Profile picture of the author jamesfreddyc
        Originally Posted by Regional Warrior View Post

        As I said it does not work that way here in OZ they will get 2-3 quotes and take the cheapest plain and simple , there is no such thing as a one call close as it takes 2-3 meetings before they part with there money so totally FOS
        Perhaps they are treating you as a commodity (simply as a price-based solution) because you are allowing them to do so?

        Own up to the fact that it's you causing it to happen, figure out how not to be a commodity and qualify better.
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        • Profile picture of the author Regional Warrior
          Originally Posted by jamesfreddyc View Post

          Perhaps they are treating you as a commodity (simply as a price-based solution) because you are allowing them to do so?

          Own up to the fact that it's you causing it to happen, figure out how not to be a commodity and qualify better.
          James no offense! but they are geared to do this as business owners are tight arses, and you have to have a bloody good deal with all the bells and whistles or you bugger off...! It has to be a lot harder now selling websites then when I started 5 years ago when there was no one doing it now every one does it and SEO .
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    • Profile picture of the author quadagon
      Originally Posted by SalesGod View Post

      2k a month is an amount you can very easily call up a business and one call close on. Pick up the phone and hang it up 10 minutes later with a larger bank account. can you think of a more efficient way to do it? Heres the only advice you need and believe me im highly experienced in the advice I give out. Get yourself a really good phone script and learn your rebuttals. After that pick up the phone and start calling businesses and don't stop until you close a deal.

      Originally Posted by SalesGod View Post

      .........It's always better to sell someone face to face if it remains cost effective to you. Over the phone all they have to do is push one button to end your closing cycle. Get them trapped face to face and either close or get thrown out. Your first call should always be to set up an appointment never try to close on the first call unless there begging you to. There's reasons for this I just don't want to ramble on to much.
      You've changed your mind
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      • Profile picture of the author Claude Whitacre
        How are you going to sell it? How are you contacting them? Are they contacting you?


        Are you speaking, and they come out of the audience?
        Are you pulling them in from Facebook ads?
        Are you cold calling?
        Are you working referrals?
        Are you just going to their businesses?
        Are you advertising in the Newspaper?
        Are you having them come in from a book you have written?

        Your package, and it's price are far less important than how you are getting in front of these people.

        How they view you, when they see your offer, will make a huge difference in how easy your services are to sell.

        And for $2,000 a month, I would expect a guarantee of leads or sales.

        What are you doing right now?
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      • Profile picture of the author SalesGod
        Originally Posted by quadagon View Post

        You've changed your mind
        To an extent, I still believe it's better to close face to face however these types of services can easily be closed over the phone. It really depends on what your selling.
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  • Profile picture of the author SalesGod
    I sell overpriced everyday. build value. sales 101
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  • Profile picture of the author jamesfreddyc
    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
    None of those things you list are giving a reason to buy from you. What revenue does all that stuff bring in to a customer? Figure that out then you can price your services intelligently.

    Here's what I'd do if I were in your shoes: http://www.warriorforum.com/offline-...ml#post8395688
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  • Profile picture of the author kimanierick
    before you ask for any payment from them, you should ask yourself if they really need you? prove to them that they need you and then they will pay you. Give quality to them maybe at a subsidized price. you don't need to start very high. first find a platform where you can prove your skills and the rest shall follow. dollars will follow you my friend. thank you
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  • Profile picture of the author tryinhere
    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
    You offer these services now ? or are you just dreaming them up and throwing a number at it? Because you are implying you now offer these services as business yourself but you have no idea on what your own time and ability is worth? you then want experienced business owners to shell out 2K to somebody to help improve their business but in turn does not understand their own business.
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  • Profile picture of the author Jason Kanigan
    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
    What value are you creating for the prospect by implementing your solution?

    Even more importantly, what value does your prospect believe (ie. NOT YOU) you're creating with your solution?

    http://www.warriorforum.com/offline-...uch-again.html

    Go watch that.
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  • Profile picture of the author DaniMc
    There are some extremely limited belief systems being demonstrated in this thread. And to the guy calling someone numb nuts because they offered an opinion....really?

    Look - if you think $2,000/mo is a lot it is only because of your limited beliefs about your own value. $2K is nothing. Absolutely nothing. I don't care WHERE in the world you are. It absolutely doesn't matter.

    There are business spending more than that in Kenya, Somalia, and Afghanistan - some of the poorest most miserable locations on Earth.

    There is a TV station in Afghanistan charging $1,000 per minute - and you KNOW there are quite a few businesses advertising.

    "It won't work here" and "It won't work in my industry" are two of the lamest excuses ever given. Just come clean and say YOU don't believe it can be done. It definitely can.

    I own a very small business and spend much more than $2,000 every month. In fact, one of my GOALS is to spend $10,000 every month on revenue generating marketing. I will get there within 12 months from now.

    If I could drop $100k/mo and handle the workload I absolutely would.

    If you think $2K is a lot....are you even working with real businesses? This is a minuscule amount to spend on marketing.

    OP - it all comes down to value offered. I was selling $2,500/mo services for several years. We had one package that was $15,000 upfront, $2,500/mo, + a % of sales on the back end.

    Now - you can't just jump into the deep end without offering real value.

    Here is what I would do starting from scratch:

    1) Talk to a few business owners and sell the service to break even (or even at a loss). Track ROI religiously. This is very important.

    2) Keep making your service better and better until you KNOW that if a business gives you $2000/mo you will bring them at LEAST $10,000/mo in sales. You have to know this and be able to demonstrate it.

    3) Start selling at $2,000/mo - simple. Get on the phone or face to face and say "You simply must hear me out - if I can't bring you $10,000/mo in sales - I will not allow you to hire me. Based on my results with companies X,Y,Z I KNOW we can do this." I'm not going into the sales pitch here really - just know you have to get attention, make big claims, and be able to back them up.

    It doesn't matter if you sell on the phone or in person - what matters is if you can demonstrate results and build a system to feed your pipeline.

    I have one provider who I pay $2,700/mo - I have only spoken on the phone. Never met anyone. Never been to an office. They are on the other side of the country.

    If you have a system that WORKS and creates 3-10x ROI you will sell. 3x is the absolute minimum. Even then you will struggle to sell the package. You need to deliver 5x ROI or more to even have the conversation.

    Go do it. Build a system that works. Get a few test cases. Then talk to everyone. It is possible.

    Don't be a consultant - build a system that works then build a company.
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  • Profile picture of the author steve2036
    It seems as though not many people are referring to your question.

    I do just that FOR service based businesses, a few of my clients are SEO and web development firms, so I know exactly what you should do when needing to generate leads for your firm as well.

    If you are looking to sell B2B directly on your services for Web design and SEO, there are several ways to do it. You can price anything you want as long as your present enough value to your client. In terms of direct selling, you can go old school with the cold calling, direct mailers, or hit the streets and get face to face with businesses. All the above works but all are what most people don't want to do. For example a major resource for my company- which delivers leads directly to the SEO/Web design companies- is simply the phone. Each one of my reps calls nearly 200 businesses an hour and we will get at least one business per hour per rep calling, who are actually interested in speaking with one of our clients. It basically comes down to putting in the time and consistency that will generate interest in your services!
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    • Profile picture of the author quadagon
      Originally Posted by steve2036 View Post


      Each one of my reps calls nearly 200 businesses an hour
      Are you sure? That's what 18 seconds a call?
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      • Profile picture of the author Claude Whitacre
        Originally Posted by quadagon View Post

        Are you sure? That's what 18 seconds a call?

        If you use a dialing software, it's not unusual.
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        • Profile picture of the author bizgrower
          Originally Posted by quadagon View Post

          Are you sure? That's what 18 seconds a call?
          Originally Posted by Claude Whitacre View Post

          If you use a dialing software, it's not unusual.
          And 200 dials, not all conversations.
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        • Profile picture of the author quadagon
          Originally Posted by Claude Whitacre View Post

          If you use a dialing software, it's not unusual.
          Yeah we use a predictive dialler and it takes out answer machines, blocked calls, expired numbers etc before it gets to an advisor.

          Even if I include these I still think it's high somebody somewhere must want to talk to you even if its a gatekeeper, or to pass you through to the right person, lie about not being there or just shout profanities to you.

          Maybe it's me and I'm soft(or cheap) but I don't like to see people burn through data.

          We've an advisor who is in the top 5% of our lead gen team every month. The clients love him because they know they'll get 30 transfers a week. The op's and marketing guys hate him as he's dialling 400 leads a day to everyone else's 75-100.

          His CPS is 175% above the median. His transfer are poor quality because he essentially deals in 'will you **** me selling.

          He's desperate to move onto a sales team but we are even more precious about our leads on sales.
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  • Profile picture of the author sdentrepreneur
    After you built the website, its hard to charge $2K a Month without some type of Lead Generation System in place.

    I would add Lead Capture Pages and Sales Funnel.
    Paid Marketing Facebook PPC and Google Adwords.
    In my 8 years of experience, the only clients that have stuck around long term, that paid me over $2,000.00 or more per month are the ones that I can prove to them, that the Digital Marketing I am providing is bringing them at lease $10K in new business. Otherwise....you will just become an expense and they will drop you.




    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
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    • Profile picture of the author mu2pilot
      Originally Posted by sdentrepreneur View Post

      After you built the website, its hard to charge $2K a Month without some type of Lead Generation System in place.

      I would add Lead Capture Pages and Sales Funnel.
      Paid Marketing Facebook PPC and Google Adwords.
      In my 8 years of experience, the only clients that have paid me over $2,000.00 per month are the ones that I can prove to them, that the Digital Marketing I am providing is bringing them at lease $10K in new business. Otherwise....you will just become an expense and they will drop you.
      This doesn't surprise me. We need to keep in mind that most "legacy" businesses have a net profit margin of less than 20% and a lot of them are closer to 10%. If your lead gen costs say, $2,000 plus ad buy and you bring in $10,000 in sales, a lot of businesses are losing $$ on that proposition. It helps to know the lifetime value of a new customer to justify the lead gen program.
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      • Profile picture of the author ewenmack
        Originally Posted by mu2pilot View Post

        We need to keep in mind that most "legacy" businesses have a net profit margin of less than 20% and a lot of them are closer to 10%. If your lead gen costs say, $2,000 plus ad buy and you bring in $10,000 in sales, a lot of businesses are losing $$ on that proposition.
        Well said.

        Very rare to be talking about a businesses
        margins around here.

        Best,
        Doctor E. Vile
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        • Profile picture of the author massiveray
          Originally Posted by ewenmack View Post

          Well said.

          Very rare to be talking about a businesses
          margins around here.

          Best,
          Doctor E. Vile
          Yeah, it's a touchy subject to bring up, getting to know the margins and what can affect them either directly and indirectly is a major part of high level consultancy.

          Probably why most people avoid it around here, tin of worms at its finest.
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        • Profile picture of the author Claude Whitacre
          Originally Posted by ewenmack View Post

          Well said.

          Very rare to be talking about a businesses
          margins around here.

          Best,
          Doctor E. Vile
          When you are talking to a small business owners (not a committee), and they bring up margins...they mean the margins with their current overhead and projected sales. Let's say they tell you that they only have a 10% profit margin....The additional sales you bring in will not have the same overhead. Their overhead, as a percentage of sales, isn't constant.

          You may be adding almost nothing to their employee pay, real costs of providing their service, hard costs to stay in business, etc.

          For example, a business doing $50,000 a month in business can sometimes double their net profit, by raising their business by 30-40%. Because they have to pay their overhead first.

          For example, in my small business (retail store), $10,000 a month barely covers expenses. I may as well be unemployed. $20,000 a month, may give me $6,000 in income, because the overhead is mostly fixed costs. And $40,000 a month gives me $20,000 in net profit.

          I haven't tried this argument with large companies, but it appeals to small business owners. Increases in business increase their profit percentage as well.

          As a consultant, I worked for a business that I showed how to double their net profit, by simply finding a source of product that charged them 15% less..... They did it, and it was true.

          Just a thought.
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          • Profile picture of the author mu2pilot
            Originally Posted by Claude Whitacre View Post

            When you are talking to a small business owners (not a committee), and they bring up margins...they mean the margins with their current overhead and projected sales. Let's say they tell you that they only have a 10% profit margin....The additional sales you bring in will not have the same overhead. Their overhead, as a percentage of sales, isn't constant.

            You may be adding almost nothing to their employee pay, real costs of providing their service, hard costs to stay in business, etc.

            For example, a business doing $50,000 a month in business can sometimes double their net profit, by raising their business by 30-40%. Because they have to pay their overhead first.
            Yes, this is good insight to get deep in the mind of their customers. And although a business can double their profits with as little as a 30-40% increase in revenues, the small business person is living in the present and *thinks* his net profit is x% of revenues. You come in as a consultant and tell them you're going to get them an additional $xxx in revenues, in his mind, he is multiplying that times his current net profit %.

            The other thing to understand about small business owners is a LOT of them aren't aware that their profit margin percentage will go up with a substantial increase in revenues.
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      • Profile picture of the author sdentrepreneur
        Yes, totally agree....the average term of most of my clients is 6-9 months. I have several that have I have worked with for multiple years but it falls back on my skill of getting them leads and sales, directly from the Internet.


        Originally Posted by mu2pilot View Post

        This doesn't surprise me. We need to keep in mind that most "legacy" businesses have a net profit margin of less than 20% and a lot of them are closer to 10%. If your lead gen costs say, $2,000 plus ad buy and you bring in $10,000 in sales, a lot of businesses are losing $$ on that proposition. It helps to know the lifetime value of a new customer to justify the lead gen program.
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  • Profile picture of the author animal44
    Well said Claude. This is something many small business owners don't get...
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  • Profile picture of the author bizgrower
    Originally Posted by echidna View Post

    I currently offer:
    • Website development (simple wordpress)
    • Unlimited web changes
    • Hosting
    • Social media content, advertising and management
    • Web traffic (writing articles, content syndication)
    • Email marketing to their database

    Is $2000 too much to charge?

    Do you think they'd be business owners that pay this?

    Any advice on our to improve / package my offering would be greatly appreciated.
    Maybe it's covered under #3 social media content, etc. but you should look at all their on and offline content and see if you can improve it. Example: Same size print ad, but more effective layout and words = more ROI. And that's just one part of one part of your package. One part of one part of your package. Conversion Rate Optimization (CRO) usually refers to web content, but I think it applies to the clients' offline efforts as well.

    Another concern I have is how much it will cost you to do the work and make a profit from each client.
    Some will fit at $2000 a month. Others will require a lot more work monthly. Or, at least a lot more up front. Or both.

    I had a prospect with a lot of information products as well as personal service (dating coach).
    I missed by not looking at her whole presence - on and off line - and coming in with at least $10,000
    up front to re-do just about everything in the sales funnel from e-book cover to web content to video content to website and email capture and list building. She probably had it too.

    Don't miss by not offering what they really need and watch your expenses as well.
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  • Profile picture of the author DaniMc
    Yes most employees in a small business are severely under-employed. Most of the machines sit empty most of the time. Most of the phones aren't ringing most of the time.

    Most of a $10,000/mo increase will go right to the bottom line.
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    • Profile picture of the author DABK
      I once went, together with 3 other marketers, for lunch at a restaurant in a hotel... Big room, could fit 200. We were the only ones there.

      One of my marketer buddies said something to the manager about how empty rooms are a waste...

      It's Wednesday. We're never busy on Wednesdays...

      In other words, they /some of them don't even think it's wrong or that something should be done about being under capacity.

      Originally Posted by DaniMc View Post

      Yes most employees in a small business are severely under-employed. Most of the machines sit empty most of the time. Most of the phones aren't ringing most of the time.

      Most of a $10,000/mo increase will go right to the bottom line.
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