How to Charge More, Without Doing More

in this video i'm going to show you the fastest and easiest way to charge the maximum amount for your agency service i'm going to be demonstrating this all on a very simple matrix that shows you the relationship between information and labor and how you can better leverage those two to maximize the pricing of your services i'll be walking you through this model using a private video from the blueprint platinum which is my one-on-one agency consulting program if you're interested in learning more and potentially joining there's information below this video so with that being said let's talk about how we can maximize the value the impact and the pricing for your agency services let's get into the video we're gonna do so by understanding this chart over here that has two very simple inputs information and labor and now these are the two inputs because very simply speaking these are going to be the two main things that go into delivering any sort of result for a client information meaning how much expertise or knowledge does it require to deliver this labor meaning how much labor or time will it go in to deliver this so again when we look at these two types of things those in the market who are seeking uh an offer that has more information are gonna have more time than money right so somebody looking for a training product is gonna have more time to learn it than money to execute right on the opposite side of coin if you're offering a completely done for you seo service or any type of service the people that you're selling to are generally gonna have a lot less time meaning they want you to execute it and more money to pay for it also a big part of that too though is understanding when i say more money less time and more money the amount of money is going to be directly attributed to their business type and the impact that you can drive and that's where the economics of pricing are really going to fit in because at the end of the day any business owner is going to be busy and they're going to want to pay someone to do the work for them but not everyone is going to be able forward to pay your services for the amount that they need to get executed and we'll talk and unpack that more through some examples that i've already seen going through platinum with a lot of you guys so this is a very helpful exercise to understand how you will deliver your service right how much information is needed versus how much labor how much do we have to do for them and then again the impact that that will drive and how much you can price it so again so we're looking at here with this chart is very simple right information on the left hand column it's in the bottom quadrant it's going to be low information or low expertise on the upper left it's going to be higher information or expertise same thing with lower lower left-hand quadrant is going to require low label labor in order to deliver right-hand quadrant is going to be high labor in order to deliver so where we don't want to be is down here this is where our bad offers this is where our offers go to die this is going to be very high labor and very low inform information or expertise so just for context when we think about something like cleaning your house right the act of cleaning a house does not require a lot of information or expertise it's commoditized pretty much anyone can do it but it does require a lot of labor so when it comes to that understanding how much will are people willing to pay for something that does not require lex but a lot of expertise but just requires a lot of labor this is where we want to stay away from so some of the offers that i see coming through that are completely done for you services for companies like a coffee shop for example right it's not going to require a lot of information or expertise in order to get it done it's just going to be a lot of kind of busy work and getting it done the only way that you can really get that offer to work and i know it's enticing because there's a lot of demand for it but economically it doesn't always work out so a lot of you coming in here that are you know trying to figure out how you can charge more for your services you're just stuck with a bad offer that's not enticing to the market because it doesn't require a lot of information or expertise in order to execute it it's commoditized if you will and it requires a lot of labor in order to get it done so what you're stuck in is a position where you got to do a ton of work for a client and the impact based on that work is not high again when we look at the impact based on doing seo for coffee shops how much money can they really make off your services so again if we're stuck in the situation where we're charging a done-for-you service to do seo for a client who doesn't necessarily have a lot to gain from it in terms of value or doesn't require a lot of info and expertise that's going to require you to charge more upfront then you're stuck in a situation where you're going to want to revisit your offer so this is what we're going to go through now on an offer chart and we're going to actually go through and plot some different offers and see where they land on here hey real quick make sure to subscribe and hit the notification bell i post weekly content only for my subscribers like links to my private slack channel office hours and free access to marketing templates and tools so if you don't want to miss out make sure you hit that subscribe button and the little notification bell that's it here so i just migrated this chart over here so a little bit something more workable and plotable over here in lucid app so again what you're looking at exact same plot here info on the left label on the right and then what i've got are the four kind of basic offers if you will in terms of service delivery right so you got a freelancer got a done for you agency we've got consulting also coaching i'll put in there and then training so i just wanted to help you kind of understand and contextualize where these different just kind of business structures offer if you will fall in this model so a lot of us get started down here as a freelancer right this is very close to the bad offer this is where we're doing a ton of different stuff for a ton of different types of people pretty much unfocused almost just kind of picking up odd jobs if you will to just try and scrap together the money what i've also added here is an arrow on top this just kind of shows in my opinion how high that this can scale in terms of revenue right it's almost kind of a cap if you will on this type of offer freelancer is going to have a very low cap why because it's just yourself you have no people you got a pretty weak offer and you're doing all the work and usually again in in lower information spaces right when it gets into more high information spaces then you're getting into more of a consultant which we'll talk about in a second so this is an area again where most people get getting started we want to help you try and break out of that so if you're a freelancer you're down here you're doing 100 of the work for people again a lot of the times their knowledge of what you're doing too are pretty low and the impact of the work probably doesn't have a huge business value graphic design link building things like that they're going to have trouble connecting the dots in terms of the value that you're creating for them on the opposite side of the coin here what we have is a training program so this is no labor right all the way to the left on labor scale about halfway up the info scale because uh depending on what your training product is about you don't necessarily have to be the biggest and the baddest in the expertise you know you could do something similar on whatever it is that you're doing for freelancing hey i'll help you design a website i'll help you you know understand link building this is where my first training program got started and uh you can see here the cap here is also not that high just because for the most part when it comes to trainings people are only going to be willing to pay a certain amount again when we're talking about the economics of pricing again when it comes to the tactics of things you hear me talk about a lot more talking about tactics people are going to be willing to pay so much for information on tactics because information on tactics is commoditized you go to youtube and you type in how to do link building ten thousand articles right so how much can you really make in charge for doing a training on link building or building a website you can make a lot i personally have uh but it's gonna be a lot more friction in order to do so which hence is why we tacked on our consulting offer here at the blueprint training because not only is the cap much higher because we're in the pro we're in the act of selling information and coaching and teaching information as opposed to just selling video courses people are willing to pay a lot more for that human touch we're also able to drive much more of an impact right if i give you videos on positioning and offer design you're going to get value from it you're going to take you dirty implement it maybe but if i work with you and you work with our team of coaches and consultants we're not only able to personalize this information to you and answer questions and customize it to your business we're able to hold you accountable things get much more done so we charge more for that but the impact is much greater and the impact of what we're doing scales up depending on the size of the problem that we're solving and that's kind of the beauty about consulting too is that you can continuously change your offer based on the information that you have so there's going to be a little bit more labor here in terms of moving to the right on the labor scale when it comes to consulting uh but the info is also higher right you know if you want to work one-on-one as a consultant with something you've got to know how to do something very intimately well i mean consulting could be all the way at the top here if you will but consulting and coaching is something that i push on a lot of you in platinum because i think it could be a good fit for you to introduce your offer which we're going to talk about in just a second but the final one over here is going to be done for you agency so most you coming in here are in these two you're either a freelancer you know maybe a consultant if you want to call yourself a consultant but pretty much doing a lot of work for people that you know i'd be getting results but not necessarily having the value to justify more then you get into the agency space it's still a ton of work in terms of done for you but you've got a team you've got people you're solving bigger problems you're charging more for it and that's going to be higher on the information scale too because you're going to want to specialize again getting out of freelance or getting into agency usually means you specialize you target a core customer and how to create value for them which will allow you to charge more over time so these are the four basic offers pretty much everything that you're going to come up with during the service design process here is going to map to one of these the final one that i want to introduce you to which is not in here is what i call the done with you service model so the done with the service model is a hybrid between these three up here right so again you look at blueprint platinum which is our coaching consulting program what it really is is we're saying okay uh you know when it comes to the needs of the market there's a need for information because a lot of folks are having more time and not necessarily have more money so we're putting together an offer that's going to have videos with it this one that you're watching here but then also coaching off the back of it right and then also an element of done for you too because we're creating templates we're creating uh different things to give to you that are done that you just have to implement and then along with coaching so we've created somewhat of a hybrid model in between here that works really really well but again the key here is understanding what's best for your customer right because if you're working with dentists and you want to do you know seo for dentists they're probably not going to want to do any sort of work just because the nature of who they are which brings us to our next chart over here where we're going to actually look at plotting these things for your actual offers that you're going through and building so i got a bunch of different kind of offers already drawn up i just want to drop them on here so you can understand kind of the thought process of going through as you're getting more specific where they offer so i just presented you kind of the different business types and where they land now let's go through and talk about specific offers right let's say for example you want to do seo for dentists again this one over here is going to fall somewhere over here where you're doing a lot of work for them and you need quite a bit of info too again because you're specializing with a specific type of client but what you can see here is just the cap on this one is not overly high right because again a dentist is only going to want to pay so much for seo or web design or even for leads right because they have that specific lead cost probably attached to some sort of cost of business so if you want to maximize the amount of revenue that you charge this client you're going to have to understand how to attach your value to the service that you're charging right so as opposed to just going straight hours base you can understand how much value you're creating for clients and then roll that in and again when it comes to the pricing you don't have to change you can still use our hourly pricing model but you want to make sure you account for that value and the total amount that you're getting per month or whatever you're charging them is going to be directly attributed to the value that you're creating for them in the value that you've created for other clients so for example when you're going through the pitch process with a dent this is why case studies are so important that's why data is so important because you confer to 10 other dentists that you got and when they say hey ryan well look at you want to charge me 5 000 per month but this company over here only wants to charge me 500 per month i think i have to go with them just based on the price you guys are both doing seo right wrong no steve here's the deal i've been doing this for 15 years i've been doing this for 15 clients whatever it may be the reason why our costs are what they are is not just because of what we're doing for you we're doing all the same things as our they are we're just doing it at a much higher level our costs are our cost because of the impact that we're going to drive to you for example steve how much is the lead worth to you well ryan the lead is worth about 500 hypothetically right well look steve we did the analysis based on what we're seeing here we think we can drive an extra 10 000 visits to your website per month taking your basic conversion rate of x y and z times that by your lead amount we think we can create this much value 25 000 a month just by the impact of our service are they doing that no ryan they didn't really show us that well steve that's why we cost five thousand dollars are you paying for seo are you paying for more customers that's how you want to get to that's how you frame the value conversation that's how you break it down with them we're getting off of the hey this is how much it costs to do x y and z and this is how much it costs yes we're doing all x y and z but our costs are our cost because of the impact that we're going to have on your business so that's how you start to have a value conversation it might not apply to dentists but again here's another one over here that i really like this one is seo for attorneys right so these gonna be you know probably a little bit more on the labor scale uh maybe a little bit more up on the information scale too just because you're working with maybe a more sophisticated tip clientele maybe they have somebody internally um but again the cap here with an attorney is gonna be much higher especially when you understand how to target and position yourselves for attorneys because the value that they're going to get from one case is going to pay for your services for five years over right so that's where again where you can start to understand understand the nuances between doing the same thing for a dentist versus the same thing for an attorney versus the same thing for a coffee shop right there's you're probably doing the same process if not a very similar one you're probably doing the same amount of work maybe a little bit more but the impact that you're driving is going to justify what you're ultimately going to charge and how you're going to price either your hourly rate or your overall package so let's look at another one over here i have this one tagged as leads for agencies so when we look at this one i i liken this to what we're doing here at the blueprint 2 right where a lot of agencies don't have a huge budget to pay for leads or they don't want to pay someone to do it for them because they're agencies and they they want to do it themselves or they have the capability to themselves or they understand so well the pricing economics of what it's going to cost to hire someone to run their ads and build their marketing that they're willing to do that internally so our offer is geared towards helping agencies generate leads through information and coaching now again maybe the cap on this company on the cap on what we can charge won't be as high but it doesn't take as much friction for us to do this which means we can get more and more customers and delivered at a much faster and easier rate than having to do everything on the labor scale so part of this too is understanding who you are as a business owner and what you want to do if you don't want to have a massively labor intensive process you can either strip down your service which is a lot of what we teach here and continue that done for you and continue to specialize and work with a more and more type of clientele that's one way that you can move up over here away from the labor scale and more on the information scale is continuously specializing continuously gathering more information and understanding and then continuously moving your service over and pulling away elements templatizing things and then teaching and coaching as opposed to doing it for them again it's a much different type of clientele this model over here would not work with dentists because dentists aren't going to sit there and watch videos and get on a weekly coaching call and then want to run their ads you have to intimately understand your customer and who's on the other end now another example this could be let's say like leads for real estate right so these can start to go anywhere it just really depends on on who your types of targeting so for example as you're going through this and you're saying hey look ryan you know i i know real estate very well but like god damn like i'm tired of working with them because i have to do everything for them they don't appreciate or work blah blah blah maybe what we can do is we can shift who you're targeting within the real cities we don't you don't have to give up all this knowledge that you've gained but if you want to get off this labor scale because it's a means to an end and you know that they're just you're just get can you continuously getting bottomed out by offshore companies who are just charging less and less and less then you're going to want to look at moving more up the information scale and off the labor scale and part of the ways you can do that is refining who you're targeting so as opposed to targeting the everyday real estate agent or broker maybe you start going after the top 10 percent i know that's a big jump and i know that's hard to do but this is why having your knowledge and experience is so important because the more knowledge and experience you have the more qualified you are to work with a higher type of clientele and if you're working with a higher type of clientele then you understand hey they probably have a team over there right and they're probably paying a lot to agencies so maybe we can play on that and be like hey you know we can save you money and get you more by helping you to bring lead generation for your agents in-house how we can do that well we've got a system in a program we've got a bunch of templates we're going to teach you ads and this is also the conversations i'm having a lot of you as opposed to you know you do a bunch of services but you're offering one-off services instead of doing one-off services you offer them a package so for example when we look at going back to the offer design what does it take to get leads for real estate agents it's not just seo maybe right it's we got to do some landing page optimization we want to do some content we got to uh you know set up some ads and then we want to build some links right because we want to do like quick and then long term so we want to do like serp or like maybe we just want to go after all over everything in the search engine so we're going to do paid ads and we're going to do organic for them so instead of selling them seo as a standalone or pay-per-click as a standalone we force them into buying the package right so you know if they're coming to you and be like hey you only have a 2 000 budget then you're like okay well we're just going to do seo for you because that's in your budget or we're just gonna pay to ask you because that's what fits your budget instead of saying look at steve um i i appreciate and understand your budget but like if you just hear me out for the next 30 seconds and tell you why it's going to be in your best interest to pay us double that because we're going to return triple over the next year as opposed to you know not because steve when it comes to uh you know search engines you've got to be everywhere and you got to be there quick so we think in the first 90 days we can turn around x number of leads by doing paid ads and then gradually taping that tapering that off and focusing on seo and picking up your leads through seo over the long term and then we're using your paid ads budgets to continuously find new keywords for you that's the package that we want to get you in steep otherwise you're going to be stuck in the situation where you're constantly paying bunch of agencies you don't know what they're going to return they're all working in a silo we can help you bring that in-house so yes you're going to have to invest a little bit more in the front term and i understand that makes you a little bit uncomfortable but i promise if you look at our track record and case studies we can get to degree to where you need to be right would you agree that five thousand dollars to return fifteen thousand dollars every month is a good investment yeah ryan i would say it's a good investment okay steve here's the package that i want to show you here's what we do right and that's a little bit more about again how we can start to reframe that conversation to move off the labor scale by packaging up different things and teaching them certain things right versus doing everything for them so where i'm trying to get with you is is just helping you understand how to move your offers off of this how to understand who you're working with how to continuously massage what you're doing to get it to a point where you're not only maybe doing a little bit less work in terms of the done for you but you're also doing what's best for the customer but you continuously refine understand the customer and then you're continuously able to ratchet up your prices and increasing value for these people so the last one over here that i want to show you is just kind of how we're doing seo for b2b again this is our our offer now the agency and i'm going to kind of walk you through how we're continuously evolving it so we started over here as well completely done for you everything we're going to do your links we're going to write your content just pay us five to eight grand a month flat fee you know again what ends up happening here is when you do everything for people their expectations for results are through the roof as opposed to when you're doing things with them they own some of the responsibility for the results as well and they're also ironically willing to pay a little bit more just depending on what it is you're doing for them so we've been continuously moving off of the labor scale to a point now where we're and continuously trying to move up the information scale because again we're experts we want them to see us as experts we want them to pay us as experts but we also don't want to have to do all the work for them and that's just by continuously also understanding who's on the other end of that line we don't work with business owners we don't work with small businesses we don't work with local businesses you have to have an internal marketing person over there and you know generally speaking we want you working with a couple agencies so that way we can come in and cut down the amount of agencies and just focus things and bring that internally but again we're still focused on the same offer which is pretty much seo for b2b we're just continuously working on moving up the value chain and moving up the offer scale and continuously charging more and that's a combination of continuously refining your offer continuously looking at your mechanism for delivery and continuously asking yourself what's best for your customer so that's a kind of long-winded offer value creation pricing all rolled into one very very important stuff especially for those of you who are stuck with your pricing stuck with not being able to charge more these are the types of thoughts and concepts that i need you thinking about so you can start to think about how to break out of that so if you have any questions hit me up in slackkill

Channel: Ryan Stewart

Views: 1,798

Rating: 5 out of 5

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Id: k7h3gE-wtaE

Length: 19min 55sec (1195 seconds)

Published: Mon Apr 12 2021