So What Do Those With Balls Charge For What We Do?

69 replies
I created this thread because I would like to hear of the prices you've seen charged for websites, mobile websites, ad design, SEO, and other marketing services by professional agencies with balls.

Please don't post "I charged $5000 for a website or my uncle's friend charges $2,000 a month for SEO". I'm talking about the serious money...$200,000 per year/$30,000 website/etc.

I'll start....

About 2 years ago, my buddies and I went to a professional agency seeking a social network website. They quoted $15,000 for just a wire frame mock-up with no functionality. And we weren't opposed to it.
#balls #charge
  • Profile picture of the author massiveray
    I get 8k a month from a certain industry for SEO on 5 local keywords with 0 competition, basically did some onpage optimisation and maintain a fairly straight forward campaign monthly.

    These guys make 50k minimum from each client and that's just up front, life time value is something around a mil.

    I get them between 1-3 clients a month so works out well for them, if I was renegotiating this now I'd ask for a hell of a lot more.

    Some of the easiest money I ever made.

    I'm also in negotiations for a deal valued at £1,000,000 with a company in Texas, some very in depth online marketing stuff with web design and multilingual SEO (which is a gold mine product at the moment).

    This happened through linked in because I had the bollocks to ask for it.
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  • Profile picture of the author maxrezn
    Very nice. $8k a month for SEO is fantastic.
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  • Profile picture of the author iAmNameLess
    You're seeing this in one light... instead of seeing it in a full spectrum. There are ways of doing business looking for the high paying stuff, and the low paying, and the fine line in between.

    It isn't always about finding the most lucrative deals when you can make more doing high volume but still with high margins. If I can get 1000% more sales with 500% margins than you can at the same margin, I do a lot better.

    It depends on how you look at things. The more work you get, the more referrals you get, the more recurring income you can get. The lower volume but higher cost, the less you have to work, but the lower amount of branding you receive.

    The beauty of this business, is that you can do things in many different ways and still succeed!
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    • Profile picture of the author socialbacklink
      Originally Posted by iAmNameLess View Post

      You're seeing this in one light... instead of seeing it in a full spectrum. There are ways of doing business looking for the high paying stuff, and the low paying, and the fine line in between.

      It isn't always about finding the most lucrative deals when you can make more doing high volume but still with high margins. If I can get 1000% more sales with 500% margins than you can at the same margin, I do a lot better.

      It depends on how you look at things. The more work you get, the more referrals you get, the more recurring income you can get. The lower volume but higher cost, the less you have to work, but the lower amount of branding you receive.

      The beauty of this business, is that you can do things in many different ways and still succeed!
      I agree there. There is a sweet spot you can hit where you get good middle of the road paying clients. And get volume. That's when the business starts to perpetuate itself. It's hard to describe if you haven't been at that point but once you hit that sweet spot the business really takes on a life of it's own. At least in my experience anyway.
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  • Profile picture of the author Greg guitar
    Originally Posted by maxrezn View Post

    I created this thread because I would like to hear of the prices you've seen charged for websites, mobile websites, ad design, SEO, and other marketing services by professional agencies with balls.

    Please don't post "I charged $5000 for a website or my uncle's friend charges $2,000 a month for SEO". I'm talking about the serious money...$200,000 per year/$30,000 website/etc.

    I'll start....

    About 2 years ago, my buddies and I went to a professional agency seeking a social network website. They quoted $15,000 for just a wire frame mock-up with no functionality. And we weren't opposed to it.
    What's a "wire frame mock-up"?
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    • Profile picture of the author helterskelter
      I've seen a local agency charge north of $15K for one 30-second spot. The make beautiful commercials, mind you, but holy cow....
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      • Originally Posted by helterskelter View Post

        I've seen a local agency charge north of $15K for one 30-second spot. The make beautiful commercials, mind you, but holy cow....
        Is that TV or radio? Major market or regional? If TV, does it include supers and/or animation? Does that include talent fees? How about music royalties? Does it include a media buy or is that production only?

        My point: $15k "looks" expensive, but may be great value.

        Pricing for your own service follows the same principle - your client cares about the VALUE, not the price.

        Mike
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        • Profile picture of the author kenmichaels
          Originally Posted by The Offline Advisor View Post

          Is that TV or radio? Major market or regional? If TV, does it include supers and/or animation? Does that include talent fees? How about music royalties? Does it include a media buy or is that production only?

          My point: $15k "looks" expensive, but may be great value.

          Pricing for your own service follows the same principle - your client cares about the VALUE, not the price.

          Mike
          Over 1 year here... you are the first to say enough lingo in one paragraph .. for me to know ... that you actually now wtf your talking about ... as far as television adverts.

          welcome

          I learned from some one who was spending over 15 mill a MONTH on 30 min infomercials.
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    • Profile picture of the author maxrezn
      Originally Posted by Greg guitar View Post

      What's a "wire frame mock-up"?
      A concept sketch of the website to be.
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      • Profile picture of the author Greg guitar
        Originally Posted by maxrezn View Post

        A concept sketch of the website to be.
        I wanted to hit the "thanks" button, but it isn't showing at the moment, so thanks.
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  • Profile picture of the author Voasi
    I had a client pay my company $120k/mo. for SEO services. He wanted to rank in the diet space for lots of keyword like Weight Watchers, Jenny Craig, etc...

    We worked on his campaign for about 9 months until we started working on another one of his domain assets. He's still running strong today with his brand.
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  • Profile picture of the author Greg guitar
    Here is an imaginary conversation, the kind I can't help going through when thinking what it would be like to charge such high fees:

    Client:

    "Hey Greg, as you know, we've been pleased with your work over the past year, but I'm a little upset now because, at a business conference last week, I heard a presentation by a gal who does what you do, except she only charges $500 per month, and it includes everything I get from you, plus a whole bunch more; she will promote me on Facebook and some other sites like it, and throw in some other extras, like more keywords that will bring more people to us.

    Now I'm kind of wondering why we pay you more than 10 times that, for less. Is there something I'm missing, or did you just take advantage of our ignorance of your competition, to charge outlandish rates?"

    Me:

    "Umm.....well, I did need a new house, so thanks for that."

    Client:

    "Don't let the door hit you in the...."

    Sorry if I'm raining on the parade, but that honestly is what goes through my mind, and the reason I will never make the kinds of fees quoted.
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    • Profile picture of the author kenmichaels
      Originally Posted by Greg guitar View Post

      Here is an imaginary conversation, the kind I can't help going through when thinking what it would be like to charge such high fees:

      Client:

      "Hey Greg, as you know, we've been pleased with your work over the past year, but I'm a little upset now because, at a business conference last week, I heard a presentation by a gal who does what you do, except she only charges $500 per month, and it includes everything I get from you, plus a whole bunch more; she will promote me on Facebook and some other sites like it, and throw in some other extras, like more keywords that will bring more people to us.

      Now I'm kind of wondering why we pay you more than 10 times that, for less. Is there something I'm missing, or did you just take advantage of our ignorance of your competition, to charge outlandish rates?"

      Me:

      "Umm.....well, I did need a new house, so thanks for that."

      Client:

      "Don't let the door hit you in the...."

      Sorry if I'm raining on the parade, but that honestly is what goes through my mind, and the reason I will never make the kinds of fees quoted.
      yeah man, i feel ya.. i even understand your fears... but your soooo
      wrong.

      give me a min to try and put my thoughts together. and i will attempt to explain.
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    • Profile picture of the author massiveray
      Originally Posted by Greg guitar View Post

      Here is an imaginary conversation, the kind I can't help going through when thinking what it would be like to charge such high fees:

      Client:

      "Hey Greg, as you know, we've been pleased with your work over the past year, but I'm a little upset now because, at a business conference last week, I heard a presentation by a gal who does what you do, except she only charges $500 per month, and it includes everything I get from you, plus a whole bunch more; she will promote me on Facebook and some other sites like it, and throw in some other extras, like more keywords that will bring more people to us.

      Now I'm kind of wondering why we pay you more than 10 times that, for less. Is there something I'm missing, or did you just take advantage of our ignorance of your competition, to charge outlandish rates?"

      Me:

      "Umm.....well, I did need a new house, so thanks for that."

      Client:

      "Don't let the door hit you in the...."

      Sorry if I'm raining on the parade, but that honestly is what goes through my mind, and the reason I will never make the kinds of fees quoted.
      If a client is happy with what you're doing for them they will never ask this question, if you're making them a good return on what they're paying you they know they have a good deal.

      People get told all the time that people can make them money, finding somebody who actually can is a different ball game.

      You can charge what your service is worth, anybody in their right mind will spend 1 to get 3 all day, every day.

      Don't be afraid to quote what you're worth.
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      • Profile picture of the author Claude Whitacre
        Originally Posted by massiveray View Post

        If a client is happy with what you're doing for them they will never ask this question, if you're making them a good return on what they're paying you they know they have a good deal.
        Yeah. I have lots of clients paying reasonably high monthly fees. They get e-mails and calls like everyone else...people offering a website...listings...SEO services.

        I've only had one client ever ask me to explain why I charge more than someone else. And it was my fault, because I hadn't contacted him in a few months with a progress report. But after a five minute "If you want less service, I can charge you less" talk, everything was OK.

        Do you shop for a cheaper doctor? Dentist? lawyer? Wife?
        It's the difference between a client and a customer.
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        • Profile picture of the author Greg guitar
          Originally Posted by Claude Whitacre View Post


          Do you shop for a cheaper doctor? Dentist? lawyer? Wife?
          It's the difference between a client and a customer.

          There is no such thing as a cheap wife. Before anyone takes offense, the same can be said of husbands. Everyone comes with a price. Half kidding.

          Seriously, I don't think this thread is about charging more than others whose work is low quality. It's more about having the "balls" to charge many times what others charge for the exact same quality of service.

          Besides, even at $500 a month for SEOing a site for say, 10 keywords, assuming we outsource for $50, and spend an hour managing the campaign, we are making more per hour than most doctors and lawyers, with a tiny fraction of the expertise and training under our belts. I don't think that qualifies as "cheap".
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          • Profile picture of the author Claude Whitacre
            Originally Posted by Greg guitar View Post

            There is no such thing as a cheap wife. Before anyone takes offense, the same can be said of husbands. Everyone comes with a price. Half kidding.

            Seriously, I don't think this thread is about charging more than others whose work is low quality. It's more about having the "balls" to charge many times what others charge for the exact same quality of service.

            Besides, even at $500 a month for SEOing a site for say, 10 keywords, assuming we outsource for $50, and spend an hour managing the campaign, we are making more per hour than most doctors and lawyers, with a tiny fraction of the expertise and training under our belts. I don't think that qualifies as "cheap".
            Greg: The "Wife" thing was a joke. I should have said so.

            Having "Balls" isn't what allows you to charge more. It's awareness of your value. It's not that other players are charging more than they are worth...it's that you are charging less. And you are stuck in that mindset.

            Are you an expert in what you do? Then you deserve an expert's rate.
            I don't know you, but I can imagine someone charging what you charge...cringing when they mention their fee. Even though their fee is far less than what most experts would charge.

            Why can I feel good about charging a reasonable amount? I'm an expert. My clients can call me and I'll know the answer. They feel confident that I'm a money producing asset. And I am.

            And so are you.
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      • Profile picture of the author Greg guitar
        Originally Posted by massiveray View Post

        If a client is happy with what you're doing for them they will never ask this question, if you're making them a good return on what they're paying you they know they have a good deal.

        People get told all the time that people can make them money, finding somebody who actually can is a different ball game.

        You can charge what your service is worth, anybody in their right mind will spend 1 to get 3 all day, every day.

        Don't be afraid to quote what you're worth.
        Thanks, I think I see where you're coming from.

        I guess I feel that to justify charging thousands per month, I'd have to be far more than just an SEO, or social media person; more like their overall marketing consultant. That is worth a lot if the return is guaranteed; otherwise, it could be a big loss for them. There are people on this forum good enough to be worth thousands as a consultant, but I'm not one of them, yet.
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        • Profile picture of the author kenmichaels
          Originally Posted by Greg guitar View Post

          There are people on this forum good enough to be worth thousands as a consultant, but I'm not one of them, yet.
          YES ... YOU ... ARE ....


          you just don't believe it yet.

          One day you will.

          and your life WILL change.

          G.L.
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          • Profile picture of the author Greg guitar
            Originally Posted by kenmichaels View Post

            YES ... YOU ... ARE ....


            you just don't believe it yet.

            One day you will.

            and your life WILL change.

            G.L.
            Thanks for the encouragement. I think the day I'll feel comfortable charging, say $1000 an hour for what I do, will be the day I have enough marketing expertise under my belt to be confident that I can create a return of several times that for the client. I'm not there yet, but maybe I'll get there soon. Thanks again for your kind words.
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    • Originally Posted by Greg guitar View Post


      "Hey Greg, as you know, we've been pleased with your work over the past year, but I'm a little upset now because, at a business conference last week, I heard a presentation by a gal who does what you do, except she only charges $500 per month, and it includes everything I get from you, plus a whole bunch more;
      In the Derek Naylor interview (that iamchrisgreen linked to in another thread), he talks about how you have to constantly remind your client what you do for them and how much they are saving/earning with your services.
      http://www.warriorforum.com/offline-...marketing.html
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    • Profile picture of the author Voasi
      Originally Posted by Greg guitar View Post

      Here is an imaginary conversation, the kind I can't help going through when thinking what it would be like to charge such high fees:

      Client:

      "Hey Greg, as you know, we've been pleased with your work over the past year, but I'm a little upset now because, at a business conference last week, I heard a presentation by a gal who does what you do, except she only charges $500 per month, and it includes everything I get from you, plus a whole bunch more; she will promote me on Facebook and some other sites like it, and throw in some other extras, like more keywords that will bring more people to us.

      Now I'm kind of wondering why we pay you more than 10 times that, for less. Is there something I'm missing, or did you just take advantage of our ignorance of your competition, to charge outlandish rates?"

      Me:

      "Umm.....well, I did need a new house, so thanks for that."

      Client:

      "Don't let the door hit you in the...."

      Sorry if I'm raining on the parade, but that honestly is what goes through my mind, and the reason I will never make the kinds of fees quoted.
      As stated above, if you're getting results, they won't have a reason to go anywhere else. Mainly because, they've already slept with you!!!

      They don't want to start dating again, spending money other suiters that "just don't meet their standards". They like familiarity and are willing to pay for it, just as long as they're making their money too.

      Now, I've had a prospect ask me before the sale is made, and I also tell them this:

      ME:
      "Listen, can you do me a favor... I really, really, really NEED a Ferrari. Like badly. I've been searching the internet and there are Ferrari's for sale that are $500. Do you think you could get one for me?"

      PROSPECT:
      "No way, Ferrari's at least cost $250k brand new".

      ME:
      "How come? ...I've been checking to some very reputable companies across sea's that says they'll charge me only $500 for one. I'll give you $800 to broker the deal!".

      This little role-playing game continue till I get to my point, which is SEO has certain steps that can not be cheapened. Just because someone says it, doesn't mean it's true. SEO is like planting an apple tree. You know it will bare fruit in the spring, but in the winter, you have to invest in soil, water, seeds, etc... to ensure that your "invest" will grow into "sales" 6 months from now. You can't get away with not buying seeds or soil to get your apple tree to grow, those are the steps.
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      • Profile picture of the author ry6782010
        Originally Posted by Voasi View Post

        As stated above, if you're getting results, they won't have a reason to go anywhere else. Mainly because, they've already slept with you!!!

        They don't want to start dating again, spending money other suiters that "just don't meet their standards". They like familiarity and are willing to pay for it, just as long as they're making their money too.

        Now, I've had a prospect ask me before the sale is made, and I also tell them this:

        ME:
        "Listen, can you do me a favor... I really, really, really NEED a Ferrari. Like badly. I've been searching the internet and there are Ferrari's for sale that are $500. Do you think you could get one for me?"

        PROSPECT:
        "No way, Ferrari's at least cost $250k brand new".

        ME:
        "How come? ...I've been checking to some very reputable companies across sea's that says they'll charge me only $500 for one. I'll give you $800 to broker the deal!".

        This little role-playing game continue till I get to my point, which is SEO has certain steps that can not be cheapened. Just because someone says it, doesn't mean it's true. SEO is like planting an apple tree. You know it will bare fruit in the spring, but in the winter, you have to invest in soil, water, seeds, etc... to ensure that your "invest" will grow into "sales" 6 months from now. You can't get away with not buying seeds or soil to get your apple tree to grow, those are the steps.
        Nailed it^. Adam, I've actually heard analogies (spelling?) just like that for SEO/Design services. Could you perhaps think of some others? . And care if I use that with my clients?..lol. It's so true.
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        • Profile picture of the author Voasi
          Originally Posted by ry6782010 View Post

          Nailed it^. Adam, I've actually heard analogies (spelling?) just like that for SEO/Design services. Could you perhaps think of some others? . And care if I use that with my clients?..lol. It's so true.
          The other one I like to use is the "Cake Bake" analogy.

          We all know that you need flour, sugar, butter, etc... to make a cake. Without each element, the cake won't bake. So you invest in getting all these different materials for your cake. Next, you start putting all the ingredients together and making them work together in a big bowl. Lastly, you put in the over for 20 minutes.

          If you but all the ingredients your cake won't bake. If you don't stir all your ingredients in a bowl and mix together (optimizing website) the cake won't bake. If you don't put into the over for at least 20min the cake won't bake. SEO (specifically) is a lot like baking a cake. You don't buy half the ingredients, toss them into a bowl real quick and then throw into the oven for 5min. And if you do, can you really expect to get an eatable cake?
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    • Profile picture of the author DaniMc
      Originally Posted by Greg guitar View Post

      Sorry if I'm raining on the parade, but that honestly is what goes through my mind, and the reason I will never make the kinds of fees quoted.
      Maybe I can offer one small thought that will change your life.

      When you stop assuming that the customer is primarily evaluating you based on price, this can change. They are not primarily evaluating you on price.

      If they are, it is only because YOU are primarily evaluating YOURSELF on price and therefore, so are they.

      Don't set yourself up like this. There is not dollar sign tattooed on your forehead.
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      • Profile picture of the author Greg guitar
        Originally Posted by Prevalent View Post

        Maybe I can offer one small thought that will change your life.

        When you stop assuming that the customer is primarily evaluating you based on price, this can change. They are not primarily evaluating you on price.

        If they are, it is only because YOU are primarily evaluating YOURSELF on price and therefore, so are they.

        Don't set yourself up like this. There is not dollar sign tattooed on your forehead.
        Thanks, I appreciate your genuine attempt to help me; not an easy job sometimes. I know that I tend to undervalue myself, for many reasons. I think you have it partly right; I focus too much on price.

        I also deal mostly with small business people that I know and am comfortable with. None of them can afford premium prices; most can barely afford anything. I have a WSO that suggests charging $500 up front and $300 a month for reputation management.

        I suggested it to a friend who owns an automotive repair shop, and he loved the idea of the service but was shocked at the monthly price (I never mentioned the upfront fee) and said it was way too high. I think he's wrong, but it's partly anticipating that kind of reaction that would stop me suggesting thousands a month for any services. I even have a hard time asking for a few hundred.

        I understand that it's better to think in terms of ROI, but I have a tough time charging 4 figures a month for a service I can easily and cheaply outsource to the point that my management of each account could be an hour or less per month, while paying perhaps $100 maximum for the help. I'd worry about what happens if they find out most of the work they pay say $1000 for was done by outsourced labor I hired for less than $100.

        I probably need to expand my circle into some higher levels of business, where the budgets are bigger and they don't swallow their tongue when they hear a price like that, but I have to admit I find it intimidating approaching owners of larger businesses; it's an unfamiliar world to me.

        Anyway, I guess it's clear I need to work on my mindset on the matter.
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        • Profile picture of the author DaniMc
          Originally Posted by Greg guitar View Post

          I also deal mostly with small business people that I know and am comfortable with. None of them can afford premium prices; most can barely afford anything. I have a WSO that suggests charging $500 up front and $300 a month for reputation management.

          I suggested it to a friend who owns an automotive repair shop, and he loved the idea of the service but was shocked at the monthly price (I never mentioned the upfront fee) and said it was way too high. I think he's wrong, but it's partly anticipating that kind of reaction that would stop me suggesting thousands a month for any services. I even have a hard time asking for a few hundred.

          I understand that it's better to think in terms of ROI, but I have a tough time charging 4 figures a month for a service I can easily and cheaply outsource to the point that my management of each account could be an hour or less per month, while paying perhaps $100 maximum for the help. I'd worry about what happens if they find out most of the work they pay say $1000 for was done by outsourced labor I hired for less than $100.
          I was waiting for that and you just fell into a common trap. Every time I help a small business owner with something they're trying to do they always say "That's a great idea but it won't work for me because..." and then they proceed to sell themselves on why their customers will not pay that much for whatever service they're offering.

          And no matter which business owner friend you ask about paying 300 dollars a month for your services they will all say it is far too high. The truth is you believe them.

          The last part of your quote above proves that's what the problem is really is. You would feel a touch of guilt for selling your services for over 1000 dollars if they only cost you 100 dollars to create them. And this is ok. You should never sell a service you feel guilty about offering.

          So how do you solve this problem?

          You do it by using that additional 900 dollar mark up to build more service into what you're offering. Don't just outsource to the cheapest labor you can find. Build things into your package until you are excited and feel great about what you're offering.

          This problem has nothing to do with your customers or your marketplace. This whole issue revolves around you and how you see yourself and your services.
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    • Profile picture of the author Teez
      Originally Posted by Greg guitar View Post

      Here is an imaginary conversation, the kind I can't help going through when thinking what it would be like to charge such high fees:

      Client:

      "Hey Greg, as you know, we've been pleased with your work over the past year, but I'm a little upset now because, at a business conference last week, I heard a presentation by a gal who does what you do, except she only charges $500 per month, and it includes everything I get from you, plus a whole bunch more; she will promote me on Facebook and some other sites like it, and throw in some other extras, like more keywords that will bring more people to us.

      Now I'm kind of wondering why we pay you more than 10 times that, for less. Is there something I'm missing, or did you just take advantage of our ignorance of your competition, to charge outlandish rates?"

      Me:

      "Umm.....well, I did need a new house, so thanks for that."

      Client:

      "Don't let the door hit you in the...."

      Sorry if I'm raining on the parade, but that honestly is what goes through my mind, and the reason I will never make the kinds of fees quoted.

      Its all about mind set dude perception of your value and the extent of your services goes far beyond just putting up a website or you ranked them for this keyword or that its the results and even further than the results what about the other things that come with the results.

      I'm going to find one of the best videos Ive ever seen for letting you know your self worth and post it, just give me a few mins.
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      You can't be scared of rejection on the quest to perfection.

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  • Profile picture of the author Gatsby
    In my time doing commercial photography - the ad budgets were not all available to me - but when I told them back in 1998 that my rate was 99 an hour, they did not even blush. That was a huge step for me. I knew it was a fair deal, and keep in mind this is in the midwest with lower cost of living; but HUGE companies. These people would have me for a full day three days a week at about $2500 to click the button on a camera. That was WAY underpriced.

    Advertising especially, has several rationals to it, variables etc. The cost is very low compared to the ROI. So, when you know for a fact what you are worth - it's not even a thing bringing it up. The only stressor is if the client actually knows what you are worth.

    Barbers, handymen, work at home cowboys - these people have no clue what advertising is worth, and they always nickel and dime it to death which consistently creates failure. They are convinced, that it either never works or (maybe just paying $350 will work this time and not fail like the last five times). Forgot what movie it was that had the quote "All business fails, some just sooner than others". Don't fall into their trapped world of being anti-spend. If they don't know how to buy they don't know how to sell.

    Good business owners know when to take a risk and evaluate it and 10,000 or 100,000 a month is nothing if it gets results. I only wish I had some of the figures that some of my old college mates have on ad budgets - in the range of 6 million. So I am in the same boat; working my reputation up in this area so that I can increase my budgets. However, I do know this to be true, and I can sympathize what it is like when you don't know or have never been part of a conversation like that. The only way to do that is to stick your neck out all the way, or even just a little here and there. Relatively easy, if you are talking to a landscaper who primarily mows lawns - then hell no. However, there are landscapers who get a client that is worth $150,000 or more. In marketing you really do need to know what the base numbers are.

    I am not scared of charging too much, I am actually scared to charge too little. If someone wants a ton of attention, a paltry ad budget is not going to make it happen. "Cheap, Fast, Smart - pick two" If you charge too little and then can't meet expectations, this will screw you up more than if you had overshot their idea and lost the sale in the first meeting. I would much rather scare the crap out of them and see them swim away after I give them a high number then later on realize I am up the creek on what we discussed about and the client is confused - no big deal but it wastes so much damn time.

    My first go into web design was odd, it was back in 1999. I had done a few sites with Adobe golive, and some other solutions. While I was playing around with the new release of cold fusion a client came in and asked if I knew anything about web design. Now, I was pricing this thing almost the same as if he had asked me to do a catalogue photo shoot. So when this all came up to be 28,000 I was still green behind the gills and did not actually feel like dropping that on him - but I did it anyway. That was WAY underpriced, and I worked my ass off.

    So now, when I am talking to a travel agent, I price accordingly - but I just talked to someone who manufactures spas. I was thinking about everything else and just going along with my daily routine, in the meeting I had with these guys it dawns on me this guy is going to need models, photo-shoots, set designers, stylists etc. They need a very visual sale, because otherwise a spa is a big plastic bucket. $85,000 would be the bare bones minimum for something like that, and that is because I have years of experience pulling people together on a project like that. If you just project managed this same kind of deal; that is hired out to everything needed while you middle manned it - $150,000 and this would be for a six month campaign to start. Again, this is CHEAPO level. Of course this also does not drop down on the table in one piece of paper. These kinds of deals are split up into timelines, various stages, and sub-projects. So it might go down in one meeting, but lots of communication is done as to precisely why and what is going to occur.
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  • Profile picture of the author sloanjim
    right....but the trouble there is you are basically short changing him....When he does relaize what he's apying you for the work etc..he will dump you. Is it good or bad you make so much money form this? Depends on your perception of it i guess.

    I get 8k a month from a certain industry for SEO on 5 local keywords with 0 competition, basically did some onpage optimisation and maintain a fairly straight forward campaign monthly.
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    • Profile picture of the author massiveray
      Originally Posted by sloanjim View Post

      right....but the trouble there is you are basically short changing him....When he does relaize what he's apying you for the work etc..he will dump you. Is it good or bad you make so much money form this? Depends on your perception of it i guess.
      Not at all, I don't know a single person in the world who thinks they are being short changed by somebody who charges them 8k and gets 50k minimum each month.

      I got this deal in my first few months online, now I'd probably charge 15-20 for it and id still be providing them value.

      The fact is I do work for them which maintains this level of income for them, now I have my own techniques and ways of doing things, perhaps a cheaper company will do things differently, not provide the same amount of traffic or business, is dumping me worth that risk? I don't think so.

      This guys knows how much I make him and we go for coffee every few weeks, he even let's me use his conference room for events, the guy knows he's getting a good deal. And is very happy with our deal.
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      • Profile picture of the author mnjuguna
        I really like your mindset! And with this mindset, you will be billing more than that sooner or later, and some people will keep wondering, how do you do that! Keep it up!

        Originally Posted by massiveray View Post

        Not at all, I don't know a single person in the world who thinks they are being short changed by somebody who charges them 8k and gets 50k minimum each month.

        I got this deal in my first few months online, now I'd probably charge 15-20 for it and id still be providing them value.

        The fact is I do work for them which maintains this level of income for them, now I have my own techniques and ways of doing things, perhaps a cheaper company will do things differently, not provide the same amount of traffic or business, is dumping me worth that risk? I don't think so.

        This guys knows how much I make him and we go for coffee every few weeks, he even let's me use his conference room for events, the guy knows he's getting a good deal. And is very happy with our deal.
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  • Profile picture of the author sloanjim
    Nope I do not agree. Even big companies and the wealthy do not to be taken for a fool. Let's say yes you are generating them $100k month bizz. but then they are told by another expert....

    "hey you are being ripped off there. He's charging you $10k to do about 1 hour "work" is that right? I can do it for $1k."

    How will they feel?

    It seem a common thread you take your clients for as much as they can "bleed" but is that really win/win? I do not think so. Ther's a "sweet spot " of making good profits and not taking them for a ride. Or am i old fashioned?

    As stated above, if you're getting results, they won't have a reason to go anywhere else. Mainly because, they've already slept with you!!!
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    • Profile picture of the author ewenmack
      Here's an example...

      The company is bleeding money faster than it's coming in.

      Mr Fixit comes in and charges them more than they have ever paid for any kind of advertising or marketing assistance before.

      Yet Mr Fixit turns them around to positive cash flow, and now for every dollar they invest in him, they get 5 back.

      Now another independent marketing person comes in and informs the owner that he's being ripped off at those fees because he charges only a quarter of what Mr Fixit does for performing the same tasks.

      What's the owner going to be thinking?

      And will he go with the new guy?

      Probably won't go with the new guy because he a strong sense of gratitude
      to Mr Fixit for saving his bacon.

      Further more he is settled into a comfort zone now
      which he likes after the stress and drama of his previous life.

      So no, he certainly won't feel ripped off.

      Best,
      Ewen

      Originally Posted by sloanjim View Post

      Nope I do not agree. Even big companies and the wealthy do not to be taken for a fool. Let's say yes you are generating them $100k month bizz. but then they are told by another expert....

      "hey you are being ripped off there. He's charging you $10k to do about 1 hour "work" is that right? I can do it for $1k."

      How will they feel?

      It seem a common thread you take your clients for as much as they can "bleed" but is that really win/win? I do not think so. Ther's a "sweet spot " of making good profits and not taking them for a ride. Or am i old fashioned?
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    • Profile picture of the author Voasi
      Originally Posted by sloanjim View Post

      Nope I do not agree. Even big companies and the wealthy do not to be taken for a fool. Let's say yes you are generating them $100k month bizz. but then they are told by another expert....

      "hey you are being ripped off there. He's charging you $10k to do about 1 hour "work" is that right? I can do it for $1k."

      How will they feel?

      It seem a common thread you take your clients for as much as they can "bleed" but is that really win/win? I do not think so. Ther's a "sweet spot " of making good profits and not taking them for a ride. Or am i old fashioned?
      Clearly, but that's not really what I was talking about. For the client that I was charging $120k/mo for, do you think if it didn't "back out" for him he would've continued? No.

      Having said that, there's something to be said about a relationship. For instance, I have someone that cleans my house. He charges a little bit more then everyone else. I've priced shopped and he's on the higher end, but he's quick, very thorough and we have a good relationship. Do I want to go and work with someone new, with the HOPE of getting someone with the same quality, consistency and thoroughness and smaller price point? No, I don't want to take the chance of searching, trying someone new, not working out, searching again, etc... Potential vicious cycle.

      But this is a good conversation that lends itself to: Knowing your numbers. As a service provider, know your numbers and stick to them.
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    • Profile picture of the author sadneck
      Originally Posted by sloanjim View Post

      Nope I do not agree. Even big companies and the wealthy do not to be taken for a fool. Let's say yes you are generating them $100k month bizz. but then they are told by another expert....

      "hey you are being ripped off there. He's charging you $10k to do about 1 hour "work" is that right? I can do it for $1k."

      How will they feel?

      It seem a common thread you take your clients for as much as they can "bleed" but is that really win/win? I do not think so. Ther's a "sweet spot " of making good profits and not taking them for a ride. Or am i old fashioned?

      I believe it is all perception. Often big companies do not want the risk of finding something similar for less. To much risk. They set up contracts for big bucks with individuals for a few reasons, but one of the main reasons is they are reliable and they produce. You never know what you get from the guy that offers a $100K service for $1K. He may very well be able to do what the $100K guy does, but will he value what he gets from his work 5 years from now? Does he value the importance of the customer? Does he cut corners?

      These are only questions that can be answered with time, and on top of that companies who pay big bucks don't have patience to find out.

      If I had a $100K customer, I would go to bed and wake up with them on my mind. I would brush their teeth, clean their shoes, and pack them lunch. And I would do it for as long as they had purchased my soul.... =)

      Its all in the perception of value, and both parties will perceive a service by the dollars passed in between for that service.

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  • Profile picture of the author Rearden
    For you guys that charge "high" prices...

    I'm assuming (a) they conceptually bought the idea of marketing/advertising/promotion/spending money to make money concept...

    but (b) have you found that they were "burned" before by the "lure" of a cheap service that could produce the same or equivalent return as a higher priced service?

    I can also tell you that smart businessmen will weigh potential ROI over cost when presented a promotional opportunity; when it was the right time of year to advertise for my personal training business (January), I would ramp up the size of my existing advertising and test out new venues, too.

    There are guys like that who will spend the big bucks; you just got to find them.
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  • Profile picture of the author smackey1
    I would love to have the nuggets to charge like that, but those charges are why I am in business. I have built my business around residual commissions on services that seemlessly connect with other. I work hard for my clients and deliver results all while relying solely on the residuals. I am looking to build a solid relationship with fewer clients because those residuals will then continue through the life of the friendship (relationship).
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  • Profile picture of the author sb
    I've structured deals every which-way. Once I learned my real value, I started charging $10,000+++, half up front with the other half due upon completion of the first stage of the marketing plan, which is laying the foundation and takes a month or two depending on my workload. And then, usually thousands per month to continue building on the foundation and preforming as their marketing arm.

    HOWEVER, the deals I like the best are the ones where you charge a nice upfront fee and then get a percentage of profits. I usually shoot for 30% of profits and usually get it. However, you have to be flexible on that. If my client does webinars/seminars, I reduce my cut down to 20 - 25% because I'm not flying allover and incurring those major expenses like he/she is. I may be wrong cutting my percentage like that but that's what I do. When we involve affiliates, I also cut my percentage down to about 20%.

    I've seen a couple of you around this forum for a long time... [GUITAR GREG!] If you've been actually LEARNING from this forum for as long as you've been around, I GUARANTEE you that you have the skills to help a lot of businesses in a big way and profit handsomely. You just don't realize it. Like they always say, "mindset". I talk to a lot of prospects/clients who are much more articulate and smarter in many ways than I am, but they think I'm a genius.

    If you've got the skills or outsource, you need to put a marketing blueprint together to show them what you're proposing to do, like a PowerPoint or a mindmap and go through it with your prospect. At the end of the presentation, I let them know that I can get them on board when they're ready IF I still have the slot available. To get started I'll need a check for $XX,XXX and the balance of $XX,XXX due upon completion of the foundation. And then whatever I've determined I want to get monthly.

    I NEVER even come close to trying to "sell" them. I tell them that if they're "comfortable" with me and my proposal, to get me a check when they're ready. Meanwhile, I'm packing up my stuff and getting ready to leave. I get some checks right then and there. Sometimes I get a call the next day to pick up the check. Sometimes I don't hear anything back, and everything in between. It's all good in any case. I never push.

    As far as a client who may someday ask why you're charging so much more than so-and-so, fogetaboutit. My clients know that they can move on at anytime through a clause in the contract. And they know I can do the same and will if they are a pain in the ass. I tell them right up front that if they start causing me headaches, they'll be fired. And I have fired clients. I couldn't care less if they go to someone else. I hope they find someone that's better than me because there are those who are better than me. But good luck finding them. The field is infested with posers, liars and cheats.

    Don't worry about things that MIGHT happen. Take great care of your clients, over deliver and see what happens.

    OK, back to taking care of my clients...
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    • Profile picture of the author vndnbrgj
      Originally Posted by sb View Post

      I've structured deals every which-way. Once I learned my real value, I started charging $10,000+++, half up front with the other half due upon completion of the first stage of the marketing plan, which is laying the foundation and takes a month or two depending on my workload. And then, usually thousands per month to continue building on the foundation and preforming as their marketing arm.

      HOWEVER, the deals I like the best are the ones where you charge a nice upfront fee and then get a percentage of profits. I usually shoot for 30% of profits and usually get it. However, you have to be flexible on that. If my client does webinars/seminars, I reduce my cut down to 20 - 25% because I'm not flying allover and incurring those major expenses like he/she is. I may be wrong cutting my percentage like that but that's what I do.
      Wow...What you are doing sounds veerrry similar to what I do.
      I started off charging just a retainer of $3k.
      Now charge a retainer and percentage, usually 20% and the retainer starts at $5k.
      Except the full retainer is due before any work commences.

      I know of a few people on this forum that charge some nice fees to get started.
      Like $30k... But, if you are good at what you do, and can provide enourmous value, their is no reason you can't command high fees.
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      • Profile picture of the author sloanjim
        i still think some of your guys attitudes are a bit off. So what the business owner makes nice profits doesn't mean you should charge them $20k+ for what is resally worth $1,000 does it?

        Yeah i know...the old cliches etc...but guess what?

        Worker A: $1,000

        Worker B: (who I thought was my friend ) $25K+

        Same work, same results.....guess what? Relationship over and done!
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        • Profile picture of the author massiveray
          Originally Posted by sloanjim View Post

          i still think some of your guys attitudes are a bit off. So what the business owner makes nice profits doesn't mean you should charge them $20k+ for what is resally worth $1,000 does it?

          Yeah i know...the old cliches etc...but guess what?

          Worker A: $1,000

          Worker B: (who I thought was my friend ) $25K+

          Same work, same results.....guess what? Relationship over and done!
          You're working on a couple of assumption there, worker a can provide the same service equally as good as worker b.

          And that what I am doing for him is worth less than he is paying me.

          You have 0 knowledge of the situation or the work involved, how do you exactly calculate worth?

          If i am paying a guy 1000 to do the work, should I charge 1000?

          What about the strategy that I worked out personally to bring him this income? Is that worth 250, 500 or 8k? What about the tests that I put in place to make sure we are ahead of the game and always will be?

          If you have your own business and you work like this then I feel for you, mine however is thriving. My clients like what I do for them and I earn great money for it, every campaign we have running at the moment is making positive ROI, I bet most companies on here can't say that.

          I'm making them money, they're giving me some of it, I think it's called business.

          How do you do it, 3 options? Each with a set in stone price? This is silly good sir!
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  • Profile picture of the author sloanjim
    I don't care if i made $1m off your $8k work if i found out the true value was $500 I'd be p**** off at you.

    Not at all, I don't know a single person in the world who thinks they are being short changed by somebody who charges them 8k and gets 50k minimum each month.
    It's a bit like creaming a few $K off a billionaires account and saying "so what they won't miss it."

    Maube they should pay 10X more for petrol as obviously that meeting they are attending might net them $1m+? Where does it end?
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    • Profile picture of the author Claude Whitacre
      Originally Posted by sloanjim View Post

      I don't care if i made $1m off your $8k work if i found out the true value was $500 I'd be p**** off at you.

      It's a bit like creaming a few off a billionaires account and saying "so what they won't miss it."

      Maube they should pay 10X more for petrol as obviously that meeting they are attending might net them $1m+? Where does it end?
      I get it. And I agree with what you are saying. I would never charge someone more just because they have the money. That would be evil, in my opinion.

      And if you are comparing apples to apples, I see your point. If one guys sells 1,000 comment links for $50, and another guy sells 1,000 comment links (from the same websites) for $3,000...then I would have a problem with the guy that charged more. (Assuming I was the client)

      But...the guy that delivers 1,000 comment links.... after he does keyword research, studies the client's competition, writes the comments to maximize relevancy, makes sure there are plenty of Dofollow links, links them to internal pages matching the text links, writes comments that won't get deleted, and only offers this service after he determines that it's the best move for the client (not for himself)? ...then I would gladly pay far more.

      Where you miss what is being said (at least by me) is that we are not comparing commodities. We are comparing commodities plus a vastly variable amount of services.

      I gave it a shot.
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    • Profile picture of the author massiveray
      Originally Posted by sloanjim View Post

      I don't care if i made $1m off your $8k work if i found out the true value was $500 I'd be p**** off at you.

      It's a bit like creaming a few off a billionaires account and saying "so what they won't miss it."
      Hahaha what you just described is theft, however I bet his business partner who helped him make that mil would be entitled to his share of it, he doesnt have to sign up to a deal and is perfectly entitled to shop around, he ain't gonna make a mil off of some of the people who pretend to be my competition though.
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  • Profile picture of the author Aaron Doud
    I think the problem in here is people are mixing up price and value.

    Think about it this way. Do I get mad that I pay $7 bucks at Five Guys for a burger when I can get one at McD's for $2 or less? of course not. In fact the McD's burger IMO is the over priced one.

    I can charge a guy $500 a month and be over priced. Someone else can charge him $8k/mo and be a great value.

    I think a lot of it comes down to what your service is worth. If you are bringing them business and have a great relationship they will see value in it.

    Of course that isn't to say I agree with the threads that say charge a percentage of what they will make because it's clear a lot of times people here don't really know how much a guy is really making. You might bring him $100k of business but you can't charge $10k is he only makes 6% (aka $6k).

    A lot of people here have the mentality of outsourcing all the SEO work for pennies and feel bad charging thousands. Of course you do. But have you ever thought that maybe the guys charging thousands are not doing that? Their employees and outsourcers are likely doing more and that costs more. They also are giving more facetime to the client which is worth money as well.

    As I have said multiple times business owners expect to pay $100/hr plus for web services. They also pay those rates for other professional services. If your company provides great results why not charge $500/hr? Other professionals do.
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  • Profile picture of the author sloanjim
    How is that theft? (i do not think so at all look up the definition of "theft" and you'll see you are way off the mark)

    Hahaha what you just described is theft, however I bet his business partner who helped him make that mil would be entitled to his share of it, he doesnt have to sign up to a deal and is perfectly entitled to shop around, he ain't gonna make a mil off of some of the people who pretend to be my competition though.
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    • Profile picture of the author vndnbrgj
      Originally Posted by sloanjim View Post

      How is that theft? (i do not think so at all look up the definition of "theft" and you'll see you are way off the mark)
      Well, here is the US it is a form of theft.
      Its called embezzlement.

      Way to blow things out of purportion.
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  • Profile picture of the author sloanjim
    I bet some people arguing that this is all about ripping people off, probably own a Lacoste polo or a Ralph Lauren polo somewhere. Those polos can go for £40-70+ in the UK, yet they're going to be cheap as hell to manufacture. There's no difference, except from the fact that they are goods and we provide services.
    The product may just cost £10 to make but I'll bet branding adds at least that on again if not more and at least you know what you are getting. If they coated it on gold paint and tried to charge £500+ as it is real gold...i'd be p*** off though. ....... Bit lame of a comparison I.M.H.O. But thx for your wondeful insights.
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  • Profile picture of the author sloanjim
    Hey i am not saying this guy does not perform what he charges....I am saying you shoul;dn't charge high simply because they'll pay it..or am I to ohonest for biz? Thx

    This is the ONLY point I am making here: Nothing to do with any services anyone is performing:

    I get it. And I agree with what you are saying. I would never charge someone more just because they have the money. That would be evil, in my opinion.
    And if you are comparing apples to apples, I see your point. If one guys sells 1,000 comment links for $50, and another guy sells 1,000 comment links (from the same websites) for $3,000...then I would have a problem with the guy that charged more. (Assuming I was the client)

    But...the guy that delivers 1,000 comment links.... after he does keyword research, studies the client's competition, writes the comments to maximize relevancy, makes sure there are plenty of Dofollow links, links them to internal pages matching the text links, writes comments that won't get deleted, and only offers this service after he determines that it's the best move for the client (not for himself)? ...then I would gladly pay far more.

    Where you miss what is being said (at least by me) is that we are not comparing commodities. We are comparing commodities plus a vastly variable amount of services.
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    • Profile picture of the author Claude Whitacre
      Originally Posted by sloanjim View Post

      Hey i am not saying this guy does not perform what he charges....I am saying you shoul;dn't charge high simply because they'll pay it..or am I to ohonest for biz? Thx

      This is the ONLY point I am making here: Nothing to do with any services anyone is performing:
      You are not too honest for business. The top performers are far more honest than most, at least the ones I know. I think you think these people are delivering the same services that you are, and maybe they are not.

      But charging more because the client has money and they will pay it? I wouldn't do it.
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      • Profile picture of the author iAmNameLess
        Originally Posted by sloanjim View Post

        Hey i am not saying this guy does not perform what he charges....I am saying you shoul;dn't charge high simply because they'll pay it..or am I to ohonest for biz? Thx

        This is the ONLY point I am making here: Nothing to do with any services anyone is performing:


        And if you are comparing apples to apples, I see your point. If one guys sells 1,000 comment links for $50, and another guy sells 1,000 comment links (from the same websites) for $3,000...then I would have a problem with the guy that charged more. (Assuming I was the client)
        I think I agree with you.

        Your prices are your prices, if people pay then great. THAT isn't wrong. What in my opinion is wrong, is charging based on the industry they're in. EVERY SINGLE orthodontist that I have as a client, tells me how much they hate certain marketers that charge triple just because they are orthodontists. Now, it makes sense to increase prices based on competition, but not based on the money they have.

        This is where I agree with you on.... if you perform the same service for a landscaping company and charge $1,000.... and the same thing you charge $7,000 for when they are an attorney... that is wrong, dishonest, and unethical in my opinion.

        Charge what you're worth, but don't charge what you THINK they're worth. That's my opinion.. some people like to just get a few clients and charge a ton... works for them, so I can't really knock it.
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        • Profile picture of the author Aaron Doud
          Originally Posted by iAmNameLess View Post

          I think I agree with you.

          Your prices are your prices, if people pay then great. THAT isn't wrong. What in my opinion is wrong, is charging based on the industry they're in. EVERY SINGLE orthodontist that I have as a client, tells me how much they hate certain marketers that charge triple just because they are orthodontists. Now, it makes sense to increase prices based on competition, but not based on the money they have.

          This is where I agree with you on.... if you perform the same service for a landscaping company and charge $1,000.... and the same thing you charge $7,000 for when they are an attorney... that is wrong, dishonest, and unethical in my opinion.

          Charge what you're worth, but don't charge what you THINK they're worth. That's my opinion.. some people like to just get a few clients and charge a ton... works for them, so I can't really knock it.
          I am a huge believer in this. Business owners talk to other business owners. They will send you referrals. Your prices for similar work should be similar. You shouldn't raise them cause one guy can pay and lower them for the guy who can't.
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  • Profile picture of the author sb
    I was a pretty good baseball player, I can throw a football and shoot hoops. I also acted in high school plays. Apparently, I wasn't good enough to pursue any of these as a career where I'd make millions of dollars per year. Should I now think that sports players and actors are overpaid or ripping people off?

    When you get heartfelt letters from clients and clients wives giving you thanks for changing their business and their lives so much for the better, you'd better believe you're worth every penny you charge. When you prevent a business from going under and take them well into the black on their balance sheets, you're ripping no one off.

    I don't know about anyone else, but the fees I charge are cheap compared to the results my clients usually get. In fact, like Dan Kennedy says, you could argue that my services are free.

    There is so much riding on us as marketers for businesses. When you sell more of a product or service, more money is made, more jobs are created, those jobs have benefits and infuse cash into other businesses and the economy. There is a direct chain reaction that goes much - MUCH further than you can imagine when you can help a business thrive.

    If you have some good marketing skills, you're probably worth a lot more than you think you are. It's the butterfly effect that little old you can produce that can make massive positive impacts, in so many ways that you'll never even know about.

    When you have a service that's in demand and you're good at it, you shouldn't be ashamed to be well compensated for it. Just ask a prostitute, Ha!
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  • Profile picture of the author TyBrown
    I don't sell offline services but I just sold a dog for $45,000. Does that count?
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    • Profile picture of the author vndnbrgj
      Originally Posted by TyBrown View Post

      I don't sell offline services but I just sold a dog for $45,000. Does that count?
      That's funny!
      I will be working with a client that sells a straw of champion deer semen for $2,500 a pop.
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  • Profile picture of the author RiskTaker
    I have two clients in a certain difficult niche to operate in. I was smart enough to take a percent of sales since I know the market. Raking in six figures between each of them.
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    Get Paid

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  • Profile picture of the author montero
    How do you define "true value" or "for the same service.?" A businessman will begin by defining it as ROI.

    An expert will always charge more because he knows he can deliver a reliably high quality service and corresponding real ROI compared to less expert service providers. If you can make someone 1 mil with an $8,000 investment on his part, you are an expert indeed. That is a hell of an ROI, and if--hypothetically--you could actually do that for $500 you'd be a fool for charging that--in fact, if you were charging that you wouldn't in the same class as the $8K expert, and you'd know it; and of course, you would know that you'd come across as a fool and a scamster if you offered to do that for such a fee. However, if I told you I could do it for $50K would that make it a tad more plausible? Of course it would. And if you had 50K and you were pretty sure I could make you a mil for that, wouldn't you be happy to do so? Obviously, such an expert could and would back up his fees with referrals and other proofs of expertise, and he would in various ways make it pretty clear that he knew what he is talking about. Why do you think first-class copywriters not only charge very high fees but in addition ask for a percentage of sales? They know what they are worth. They get serious results and ask for correspondingly high fees.

    We have all heard the story of the chief maintenance man in a factory who quit to consult on his own. One day, the main machine in the plant breaks down and no one knows what to do, so they call up the old chief to come in and do his thing. He takes a few moments and taps a certain place with a wrench and, presto, the machine works. His bill is for $1,000. A few bucks for the time spent, and most of it for the expertise--gained over years of work--to identify what had to be fixed. Moral: it's about quality not quantity.

    It goes without saying that abuses exist--that's the world for you. But the existence of abuses doesn't mean that the genuine article doesn't exist. On the contrary, thanks to the existence of real value, crooks can sometimes get away with abuses. The bad is always an abuse of the good and depends on its existence.
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  • Profile picture of the author montero
    Two on topic articles (from different angles) by Perry Marshall:


    The man who loved to help too much

    Surviving and thriving “Off The Grid”
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  • Profile picture of the author MichaelHiles
    I have a team working on a $300,000 user interface design project right now for a public company. Multiple internal portal implementations and translations for their global users.
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  • Profile picture of the author RedShifted
    Well I can relate this to one of our top competitors in the home remodeling niche.

    This guy ALWAYS charges double what everyone else is charging. You'll have 3 contractors selling a bathroom remodeling job for $12,000 and he'll come in and do it for $24,000. And people BUY from him a lot.

    I have had the luxury of seeing him close jobs along with many other contractors, and the one thing he knows how to do best, is BUILD VALUE. But he is able to do this because he's been in the remodeling industry for about 40 years.

    He has far more experience than most contractors I know. When he is inside homes he's a great salesman, and knows what he's doing. But there is a negative side to this as well.

    That negative side being buyers remorse. And the fact that he pisses a lot of people off by having "balls" like this. This is his google listing:

    https://plus.google.com/100140597356...47/about?hl=en

    Somehow, the guy still makes a fortune for himself. Well I know how. Once that page got shittied up with bad feedback, he bought out another company called "Innovative Remodeling". Their google listing was on page 1. Now he's got 2 good reviews on that page, but in another 6-12 months it'll look like his other one.
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    • Profile picture of the author sundaymorning
      Originally Posted by RedShifted View Post

      Well I can relate this to one of our top competitors in the home remodeling niche.

      This guy ALWAYS charges double what everyone else is charging. You'll have 3 contractors selling a bathroom remodeling job for $12,000 and he'll come in and do it for $24,000. And people BUY from him a lot.

      I have had the luxury of seeing him close jobs along with many other contractors, and the one thing he knows how to do best, is BUILD VALUE. But he is able to do this because he's been in the remodeling industry for about 40 years.

      He has far more experience than most contractors I know. When he is inside homes he's a great salesman, and knows what he's doing. But there is a negative side to this as well.

      That negative side being buyers remorse. And the fact that he pisses a lot of people off by having "balls" like this. This is his google listing:

      https://plus.google.com/100140597356...47/about?hl=en

      Somehow, the guy still makes a fortune for himself. Well I know how. Once that page got shittied up with bad feedback, he bought out another company called "Innovative Remodeling". Their google listing was on page 1. Now he's got 2 good reviews on that page, but in another 6-12 months it'll look like his other one.


      I agree with this because that's when the whole value thing can backfire in your face but at the same time what about the results?? I mean these people couldn't have been satified with the results that they have gotten because they felt not only cheated out of the money but there was something else they believed wasn't right.


      There has to be a point in business (not just IM) where one has to say listen I know that I am worth a certain price but if I'm worth that price I feel I need to back it up and then some. Like I can't just be commanding 5k for a website right out the bat. Don't get me wrong I'm sure everyone would love for that to happen but I feel like if my clients have choosen me for a particular job. I feel that I owe it to them to generate their money's worth. You pay for high quality you should be getting high quality. I know I might be in la la land with that concept because I am realistic and I know that everyone in the world don't work like that but that' s how it should be.
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  • Profile picture of the author Teez
    Heres the video Iwas referring too

    Alan Weiss Delivers a Keynote Speech - YouTube

    Going back to the topic its all about the value you add

    Lets use this simple analogy

    Ford Focus 2012
    Ferrari California 2012

    or in fact lets reverse it still
    Ferrari F355 1994
    Ford Focus 2015 (not even out yet)

    Are they not both cars.
    Do they not do the same job of getting you from A to B exactly.

    So why do you buy one at a higher price and another at a lower price when they are both doing exactly the same thing and even if you take into account the Ferrari has heated seats or dvd in the headrest I deliberately put the Ford Focus that's not even out yet and the Ferrari F 355 from 1994 and you will still expect the Ferrari to be expensive no?

    Its all about the perception and what it offers
    Ferrari -rich- wealth- status- premium- luxury-high class-head turner - get you in the club if you're not on the Glist- it may give you a better shot at the hot model girl - your clients would have a higher perception of you if you rock up to their offices like this- at networking events more people would be intrigued to know about you and possibly feel well if he drives a ferrair he must be good at what he does.

    These are just a number of things from a car but we don't even think about these things when Ferrari tells us the price neither do they say well heres a list of other benefits you should consider.

    Its all about the value and perception it really really is and most importantly knowing your stuff and delivering.

    Eg Seo improves brand visibility and awareness locally nationally and internationally if there are 6billion people in the world and your seo efforts get only 15% then lets think again and ask ourselves are we charging for that in fact can we quantify it to charge for it ?
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    • Profile picture of the author iAmNameLess
      Originally Posted by Teez View Post


      Lets use this simple analogy

      Ford Focus 2012
      Ferrari California 2012

      or in fact lets reverse it still
      Ferrari F355 1994
      Ford Focus 2015 (not even out yet)

      Are they not both cars.
      Do they not do the same job of getting you from A to B exactly.

      So why do you buy one at a higher price and another at a lower price
      Because one gets you laid, and the other nobody cares about.
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      • Profile picture of the author Teez
        Originally Posted by iAmNameLess View Post

        Because one gets you laid, and the other nobody cares about.
        Hence the value of what you get for the price isn't always quantifiable.
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      • Profile picture of the author massiveray
        Originally Posted by iAmNameLess View Post

        Because one gets you laid, and the other nobody cares about.
        Fo realz? gettin my ass one of them fords
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