– Good day, good day, and today we’re gonna talk about making money, and precisely how much, to be exact. Just found my, one of my old favourite t-shirts, only two of you in this group will probably know about that, but it’s from my summer camp days so it mixes summer camp with penguins, two of my favourite ever things. Completely irrelevant, but let’s move on. So I’m gonna show you how to price your services. Not really how you should price yours, how I price mine and it’s probably a good model for some of you to use. The reason for this, I’ve had the same exact question twice today. So I thought I’d just make a video of it rather than talk about it. Which has disrupted me from the previous work I was doing. But here we go, so to start with, there are two types or 2 1/2 types of pricing. We go Recurring which is everybody’s favourite, makes Dan smile. Same amount of money, every month makes things predictable. You know where you’re at. One off pricing, don’t really give too much of a shit about it, some people do sort of one off deals. I’ve done it recently. For this, I just, there’s no real rules. How much do you want? Who really gives a shit? And throw out a number and test it. If they’re willing to pay for it, just do it for that price. And then there are like, weird hybrid type models and I will be talking about one of them a little bit later on, which is one of the services I do pretty rarely. But generally, here we go. I ask two questions. It’s pretty simple, really. How many clients can you handle? You need to know these numbers. If you now these numbers, you can pretty much charge whatever you want. So how clients can you handle? I know for my history, I can handle nine at a time. If I have more than nine, I fall to shit. And how much do you want to earn? There are some important questions, sort of sub questions to ask, and things to consider with this question. When I was younger, I wanted 50 grand a month, right? It’s not quite as simple as that because you have to you know, don’t be a dick like some people will be watching Gary Vee you think “Oh! I’m gonna make a million pound, and I’m gonna hustle fucking 23 hours a day.” Fuck that shit, alright? I wanna earn 50 grand a month, that’s it. Take into account tax, costs, anything else that might get in the way, sort of equipment, higher equipment purchases, stuff like that. And just generally don’t be a dick in coming up with this number, you know? Be a little bit within your own means, so you’re not gonna go from earning 200 pound a month currently to 1 in a million pound and then pricing that way, so if you do that math, what is that, like almost five grand per client? So I need to charge 5k per client, per month to earn 50 grand just slightly over cuz if that was 10, what we’re just rounding here. There are some instances where it’s not quite the same. So, when I was on 50 grand, which was maybe a year ago now, when I first came out, maybe a bit longer than that. It might’ve been a year and a half even, so it’s broken down in sort of had an 18 grand, an 8 grand, a 10 grand, a couple of fives, whatever, whatever, so it was not just five grand, five grand, five grand and then that works out nicely to 50. It was all these weird little random numbers, and the question I get the most is, how do you come up with these weird numbers? So it’s sort of, I’m going to give you an exact example of how I came up with my pricing one time. So, I worked with a telecoms client. These guys are called what’s known as an MVNE. Mobile Voice Network Enabler, I think. Basically, these guys buy texts and voice minutes from the large corporations, the ones who own the telecoms masts and routes over abroad and stuff like that. These guys allow people to become MVNO’s MVNO’s are Mobile Voice Network Operators, so, you know, the people who you have your firm contracts with. So, examples of those sort of like Tesco, and the smaller ones, not the large ones. Tesco, sort of like, what are the other one was called? There’s loads of ’em, Talk Talk. People like that. Not the huge ones who actually own their own masts but the ones who, that sort of EE and BT. These guys will buy bulk from them and then sell it off individually to multiple MVNO’s. And that’s a basic structure. I might even be wrong about what that acronym means, but that’s generally the gist of it. The point is, these guys paid 50 grand just to have a consultation with these guys. And these guys are my client, so if every time these guys are talking to these guys, they’re gettin’ 50 grand, why should I do that for five grand? Why should I? Cuz my job here is to get these guys to talk to these guys. And why would I do that for so cheap? So I just sort of plucked a random number out the air so they say to me, “We think you should be able to provide us two calls per week,” or you know, two meetings per month or, they’ll give you a number. So now I went, “Right, I’ll charge you 20 grand for that.” They negotiate a little bit and we end up on 18. And that’s where this client came from. So, you can sort of go cray based on the client’s income if they’re making shit loads of money, you deserve your cut of it. And it’s just really about how cheeky you’re willing to be. So, if you’re cheeky enough to ask for something, and they’re okay enough to say yes, then do it like that. But here’s the general sums that I use. So, 50 grand, 9 clients. We got quite considerably above that with less, so around five for 150 by the end. Before I started sacking people, but I don’t really wanna talk about that. Now, the hybrid model, we’re talking about here. So, best way to explain it, so it’s a sort of set up fee, so there’s a large amount of up front work before the regular maintenance stuff can do. So, what we do here is charge a large sum of 15 grand setup, so an example for this is sort of when I built four microsites of people. We built communities around a separate website that links to our client whenever relevant. You’ve probably all seen that video already. So you charge 15 grand up front because the setup is way way way more intensive, so it’s like you have to find these blogs, you have to approach them, you have to then purchase them and then manage and set content schedules. All of that is a lot of work up front so you can’t just charge five grand there and then five grand the next month when you do much much less work, so it’s 15 grand up front then five grand per month for every recurring month, cuz at that point you’re just building links and managing content. So, I prefer to have this big thing here, I only charge if it can’t be systemized. There’s no guaranteed way to be able to do this service, so it’s different every single time, each client needs separate, different things, different pricing, different types of blogs, different and negotiations are fucked up like that cuz you’re dealing with real people right? So you charge a huge lump sum at the start, and then little tiny bits afterwards. This is the approach I’ve taken. It’s not as systemized as usual because sometimes when you’re making close to your goal, it’s very easy to just be like, you know you’ve got seven clients, you’ve got your 50 grand, whatever. You’ve got room for two more, so at that point you can say, you can double your price cuz you’re like, “I’ve kinda already hit my goal, I might as well swing for the fences,” right? If you wanna do that, feel free but this is just so I didn’t have to answer the questions in written format, both via email and via Facebook messages, and this is how I price my services. Now get out there and make some fucking money.
