Imagine being able to walk into your next meeting with a potential client and get DOUBLE or TRIPLE your service or consulting fee. What impact would that have on your business?
In today’s blog post and video, I’ll be sharing with you a case study from one of our Agency Course students, Siddarth (aka Sid). Sid was on Module 2 of our course when he emailed me saying he QUINTUPLED his service fee! I was shocked (and happy for Sid). Today, I reveal exactly what Sid did to increase his rates five-fold.
Watch the video below or read the expanded video transcription.
Expanded Video Transcription
Let me introduce you to Siddarth (Sid)
Sid provides pay per click marketing services in Dubai. Last year, Sid joined my flagship course, Agency Jumpstart, and in December he emailed me with the following:
As an instructor, I love hearing success stories. Especially when they are unsolicited like Sid’s! Let me walk you through the seven steps Sid took to QUINTUPLE his service fee.
1. He chose a niche
Instead of pursuing any type of business, Sid chose a specific type of client for his services. During his business development cycle, Sid decided to provide pay-per-click services to companies in Dubai.
He was specific in both:
1) Who he was going to target.
2) What service he was going to provide.
By being specific, Sid knew the exact type of opportunities to pursue and which to reject. It also allowed him to command a higher rate because he wasn’t just another generalist marketing agency.
Keep in mind that you should also select services that are profitable, in-demand, and will make your business better. Niching down your service helps you accomplish that.
Choose a client niche AND a service niche.
2. He got in front of his target audience and was persistent
Sid networked and worked to get in front of his target audience. In his own words, he had to “hustle” to get in front of his key decision maker.
Sid persisted and communicated multiple times with his main contact to get in front of them. But…
They were busy.
Sid persisted and followed up. He didn’t give up after the first call. It took him three different times calling his main contact to get a commitment. This happens at every stage of the sales cycle. From the first contact to set the initial discovery meeting, to getting the contract signed. Prepare for it.
3. He drafted a value-based proposal
Sid decided to avoid the hourly rate trap common in the service-based business, so instead of drafting a proposal based on hourly rates, Sid decided to base his proposal on value. It allowed him to do the same work, yet charge more because he could tie in the value of his service on his client’s bottom line. If Sid had stuck with hourly rates, he would never have been able to 5x his fees.
You can do the same! Switch from a price-based proposals to value-based proposals and your rates will seem like a bargain.
4. He negotiated but didn’t compromise his profits
Sid negotiated with his potential client, but he didn’t compromise his profits. That’s important. Sid proposed a deal, but there was some back and forth between himself and the prospect before a deal was closed.
You’re not always going to nail it on the head the first time you submit a proposal. Expect some additional discussions before coming to a mutual agreement. You’re rarely going to have a perfect storm where someone says “yes” to every deal you propose.
When you negotiate, never compromise your ability to make a net profit. Sid negotiated, but he still made a profitable proposition.
Why? Because he wasn’t afraid to ask for what he was worth. Instead of compromising and saying “Well maybe I’m not worth that much,” Sid stuck to his guns and it paid off for him.
You can do the same. If you feel like you’re not worth charging a higher price, watch our video on how to deal with imposter syndrome.
5. He was persistent in following-up
Persistence. Persistence. Persistence.
Sid was persistent and followed up with his main contact until he closed the deal. He never gave up.
I can tell you from personal experience of closing six-figure dollar deals with billion-dollar companies that it’s rare to close the deal on the first try. If I would have given up, maybe those six-figure deals would have been worth a few thousand instead.
Sales is not a one-time thing. Sales is a mentality. Sales is about nurturing potential client relationships. Relationships depend on constant contact and follow-up strategy.
Following up is part of the sales process. Keep in mind that your potential clients are busy – that’s why they’re outsourcing projects to you – because you have the bandwidth to get it done.
Be empathetic of their situation. Don’t be pushy. But don’t give up until the ink is dry.
6. He wasn’t shy about his prices
Sid wasn’t shy about his prices, because he was confident. He knew the value of his services.
Most of us are afraid to charge what we’re worth, because we think it might be too much for our clients. But, the truth is that you are worth it. There are prospective clients out there who are willing to pay for your service.
Figure out what you’re worth. Figure out what you can charge… and then ask for it.
Be confident in your pricing, and if it’s more than you’ve ever charged? That’s the point.
If you need help on how to determine what price to charge your potential clients, check out our post on The #1 mistake agencies make when pricing their services.
7. He wasn’t afraid of hearing no (because he knew he was the best option!)
Sid wasn’t afraid to hear no, because he knew that he was their best option.
Think about it. If you’re the best option for your prospective clients, then you are going to give them the best results. If you can deliver the best results, then you are totally worth the amount of money that you’re charging for it!
If you’re going to deliver the goods, then you shouldn’t be afraid of hearing no. Potential clients who say no are:
Hurting their business.
Hurting their prospects of success.
When they say “no,” guess what happens? They try working with someone else, and fail.
Then they come back to you, and they say “I’m ready to work with you now.”
Even if you don’t get a deal right away, be patient – what goes around, comes around.
Case Study Summary
Sid did what we teach in Agency course, and it’s helped him get better results in his business.
But most importantly, Sid did the work. He niched down, hustled forward, and he closed the deal. We are happy for Sid’s success and look forward to hearing about more breakthroughs in the future. Hopefully, you enjoyed this case study from Sid, and you are excited about increasing your rates in the future as well.
What are the steps that you can take to 5x your rates?
- Choose a service niche and client niche.
- Hustle to get in front of your key decision maker
- Present a value-based proposal and avoid setting a price per hour.
- Negotiation with clients to arrive at a mutual-agreement. Focus on providing value that yields a profit for your business.
- Follow up with your potential clients to close the deal.
- Charge what you’re worth.
- Accept potential clients can say “no”. But also accept that they can come back months later and say “yes”.
Are you ready to get started? Leave a comment with the steps you are taking to increase your rates.
This post and video was episode 27 in our 90 Day Challenge digital marketing series.
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