on 09-03-2017 10:42 PM
Today I made a breakthrough, for the first time in my coching work I taught under my name/my company! Up until now I have represented other companies both as an employee and as a freelancer. All manuals were on my logo'd stationary, I tailored the content and delivered it to 11 people. After a successful lesson they'd like more coaching and now I have to create a package. My natural intention was to suggest an hourly rate but I realised I have got to start moving away from hourly rates or how both Daniel Priestley and Glen Carlson from The Key Person Of Influence keep stating 'trading time for money!' It's one of those situations where I wish there was a guide, a formula to work to and my previous and current roles have been across the board from £95 a day to £426.40 a day!
I would appreciate any suggestions or experiences the VM network has had of this situation, appreciation in advance x
on 19-03-2017 09:34 PM
Although I have no experience with this, what about the option for customers to pay a flat fee per project?
I found these two interesting articles that may prove useful as there's a ton of information on each one.
I hope these help and provide some valuable information.
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on 28-03-2017 05:37 PM
To trade in the time-for-money cycle, try productising your service.
As Glen himself has said in one of his articles:
"A service can be packaged up like a product. You can give your service a name, it can have a method, it can have a brochure, it can be delivered by other trained professionals. This productised service could include elements that are standardised and elements that are bespoke.
Don’t fall into the trap of thinking you deliver a service and this step doesn’t apply to you. Treat your service like a product and you’ll see an uplift.
One of our clients, a plastic surgeon, thought he would struggle with product creation – it doesn’t get more bespoke than performing surgery. He’s now given his method a name, created brochures, compiled testimonials and added additional products into the overall bundle. As a result, his value has boomed and his waiting list grown.
Your service is part of the product ecosystem, so be sure to make it as productised as you can, and to surround it with other products that help educate, inspire or relate to more people."
Do check out our YouTube channel as well (youtube.com/keypersonofinfluence), as both Daniel and Glen have video resources there.
We'll try to get a response from Daniel as well, but for now, hope this helps a bit!
on 28-03-2017 05:56 PM
Great to read that you are now trading under your own brand, this is a definite step in the right direction.
It sounds as though you've got a really innovative approach to business, which is certainly great to see!
The issue that you'll have in trading time is that many people value their time differently to others, there's not only what the market dictates a rate 'should be', but also a perception of a person's own worth to contend with. This is not to say that you shouldn't try this approach, however, a pre-empting of any potential pitfalls such as this, would be beneficial in preventing future issues.
Being a consultant is great, however you need to be clear from the outset with the client, that either your hour is yours to choose what to do with it, or that you agree a set number of deliverables that can potentially be achieved within the hour.
Charging a weekly, monthly or quarterly subscription is potentially a good option and gives you a possible longer term stability and scalability.
The more work you do, the easier it will be to gaueg your worth, the more proposals you do, the more you'll see which pricing rate starts to convert and which doesn't. Looking at incremental pricing over time, as your knowledge and experience grows, will allow you to find your optimal rate.
on 28-03-2017 06:27 PM
Congratulations on your breakthrough, you must be really excited and proud!
From my view its rare these days I will charge an hourly rate for my consulting. The practical side of it is that yes I can do it, but in reality is not profitable to me and can actually cause me more issues than it's worth, therefore my single hourly rate is fairly high (though by no means the biggest in my industry). I also find that a single hour for what I do (marketing) and its likely the same for most coaching, isn't really every going to cut it - so packaging things up is really a handy way of doing things.
Someone mentions making it a product and yes thats great but depending on what you do and how it's formed it can be difficult. For example, I work with lots of different businesses from start-ups to globals and if I had static packages it wouldn't work, plus the effort to get a start-up in a small niche moving marketing wise is nothing compared with the huge effort required to move a global entity and the number of meetings that may be needed. So perhaps the solution is to have a few illustrative product/service types with "from" prices and offer a small 15 to 30 minute consultation after which you go back with a 'plan of action' or 'project cost' - this can be broken down how you want or how they want and stretched over whatever time period is needed. With coaching, as with marketing, this could be 1 week, 1 year or 2 days a week for 3 years ... either way without that initial conversation you are missing a big part of the picture and possible a whole lot of service you could offer. (not only would that service help the customer feel good and get what they want but help your bottom line too).
31-03-2017 04:40 PM - edited 31-03-2017 04:49 PM
Thanks for your reply Krizia!
I made the leap and do believe this was partly down to all the KPI events I've been to and books I've read. I just knew I needed to take action. I began with £500 and soon realised this was not of value to either!
I went in with a clear plan and offered it for £2100. It felt freeing!
Ive now applied a formula to my Skincare range - The Better Skin Formula and need to keep working on my P4P's😀
on 31-03-2017 04:42 PM
Thanks Aaron! It's a real journey and am pleased to get one project off the ground sold as a package and have applied to my skincare range too!
on 31-03-2017 04:47 PM
Thanks Andy that's really useful! I agree that a consultation really helps to fact find and even after a massage or facial I email across a Wellbeing plan to each individual and didn't think to apply to business proposals such as my freelance teaching. Now I offer the same to my skincare range clients as I know more often than not once I meet, converse and find solutions it always leads to an opportunity!