• Rod Moore - CEO & Founder of Profit Minute

    Rod Moore
    Profit Minute™
    "Most small business owners are so busy working in their business that they never take a minute to stop and work on their business. The result is usually ineffective sales and marketing and a lack of profits.

    At Profit Minute™ we work with you to ensure your business is aligned to your vision, and you have effective sales & marketing strategies to lead you to PROFIT!"

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About the Author

Rod Moore is a Sales & Marketing Strategist for Small Business. He is the founder of Profit Minute. You can contact Rod via email here or online here.

How Much Do You Charge Per Word?

By Rod Moore on Oct 9, 2008 in Attraction Marketing, Marketing Case Studies, Marketing For Business Coaches, Marketing For Coaches, Marketing For Consultants, Marketing For Entreprenuers, Sales Training

Recently I was asked by a prospective copywriting client the following …

‘How Much Do You Charge Per Word?’clock

Needless to say I was a little taken aback by the question … I had never thought of the copywriting work I do as being a certain amount of money per word. Seemed like a crazy idea to me … I mean if it is just words she was after I should have replied with $1 a word and handed her the dictionary. After all its packed full of words and I could have gone on a nice holiday.

It got me thinking though about you and your business. More importantly about how you view the work you do, how you value it and therefore how do you charge for it.

To many people in service based business charge for their services based on a rate per hour. Having come from the coaching industry I know that when coaches get together the conversation nearly always turns to the question of how much do you charge per hour.

This is akin to the question how much do you charge per word.

Here is what you must understand … your prospective customers do not want to buy words or hours of your time. What they want is a SOLUTION to their PROBLEMS!

So you must begin thinking about the VALUE you provide to your customers.

You need to ask them what it is worth to them to have the SOLUTION.

Knowing this information you then price your services based on the VALUE of the SOLUTION to the customer or client.

Let me give you an example from my business …

When interviewing prospective new clients one of the key peices of information I am interested in is the life time value of a new customer. So in other words if I help my clients develop a new marketing system that just attracts one extra client to them … what is that client worth to them.

Let us say I am talking to a Mortgage Broker who has an upfront commission of say $2,000 for each new client they bring on board. This means if I can help this Mortgage Broker to find just one new client then that puts $2,000 into their bank account … important information to know, right?

So in knowing this information I know that if I can help them find just 3 or 4 new clients then that will pay for my services. The way I then position it to my prospective client then is this … i explain to them that when we start working together if I can help you find just 3 or 4 new mortgage clients then I am free to you … and everything else after that is a bonus.

Here is the question … would you give me 3 of your clients and in return I develop for you a marketing system that will attract a life time supply of new clients?

Naturally they nearly always say YES!

Can you see how pricing your services based on the VALUE of the SOLUTION can be so powerful?

So how do you establish the VALUE of the SOLUTION you provide to prospective clients?

Well you ask them …

Lets suppose you are a Personal Trainer …. the type of questions you could ask are …

”What is it costing you not having the energy you need each day to enjoy greater success?”

A Recruitment Consultant could ask a prospective client …

“How much does it cost you each time you employ someone who is not right for the role? What does it cost you to replace them?”

A Taxation Consultant might ask …

“If I can get you $3,500 back on your Tax return … what would you do with the money?” and get the client talking about all the great things they could do that maybe they can not afford to do right now.

The key is to ask a lot of questions and have the prospective client establish the VALUE of your services for you. You need to know what are the right questions to ask of course so it requires a little planning and thought.

If you can get to the point where your prospective client is telling you what you services are worth to them … ie what the solution is worth to them, then you can easily price your services based on the value of the solution.

Now the real key to making this work is having unshakeable BELIEF in you and the service you provide. In coaching clients I find that one of the biggest shifts I can make with them is installing greater belief in their worth to the marketplace. In doing so they shift their thinking from how much can I get per hour to what is the VALUE of the service I provide and how can I price my services based on this VALUE.

How can you apply this to your business?

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