“Compare to what?” is such a good question. It acknowledges their concern, but it also reframes the cost back on value. I will definitely implement some version of it immediately. Thanks!
Thank you for sharing the strategy. Bonuses sound like a cool way out of price squashing. It's like one of those sentencess that Alex Hormozi says "you wanna do it for less? I can do it for more". Would be interesting to see examples of packages based on value, not amount of output.
Thanks for this wonderful video. I’m still at a loss to how to ‘value’ branding and brand marketing. I have recently been able to articulate the importance and value of the designed outcome - but not actually quantifying these in dollar or engagement percentage - and I haven’t yet come across a system that does aside from clicks on website/ad and UTM tracking. But usually branding comes way before any of this. So can we just say to founders and proprietors that “branding is the very core of your audience engagement and thus impacts the sales ceiling of your offering? It’s the first door people open to your brand?”
Unsolicited Member Feedback/Request: I really do love all the content I've seen (there is always something to walk away with) but the time cost is borderline detrimental. What would be tremendously valuable as a membership perk: condensing these things down exponentially in a way. I'm sure it's a challenge to build content that builds rank/watch time vs. pure reference material and knowledge-base content for members. Perhaps that's the real benefit to membership: content that's made that concentrates and delivers maximum value per second/view so we're not wading through a 30 minute video to get a page worth of content. This all might exist in some other feed I haven't discovered yet but thanks all the same!
our analytics seem to indicate the opposite. Our longer form content is actually viewed more than cutdowns. you might be the exception here. people are asking for longer, less edited content because they want to see how the ideas unfold. what do you think?
Very helpful, the word differentiate describes the elevation of your brand by your participation, asking a client how do you differentiate yourself allows you to divide and conquer in all the good ways
Watched this before meeting a client that requested number 1 & 3 because of 2, and when I presented the work he did 4 which led to all of this. And then I get to the root of the problem: it's always been hourly for him. I'm switching to blocks, this video convinced me to telegraph this to him today. Update: very receptive. Hasn't seen him in a while, hourly made it too difficult bc no clue what he gets for the time.
@@thefutur THE FUTUR -Registration confirmed for Office Hours: Business Breakthrough Workshop with Matt Essam We'll send you a reminder before the event.
While there is some good advice here, there is an equal amount of bad advice. As somebody who has run a successful agency nearly 20 years, you glossed over a few key points. Your video acts as though you’re pricing in a vacuum. That couldn’t be further from the truth. In reality, we are competing in a free market and therefore driven by supply and demand, competition, etc. The only way value-based pricing works well is if your agency is perfectly positioned with little or no competition. If you know what you do, who you do it for, and are confidently the best in the world at it, then congrats! You can charge whatever you want! But for the rest of us mere mortals, our pricing will be, in part, driven by market forces so there is often a ceiling. You need to find out how much your equivalent competition is charging and your price needs to be realistically in the same ballpark. Otherwise you are going to struggle to sell work. It’s just a hard economic truth. Want to charge more? You need to be truly unique and better than the competition. Work on your positioning first and then better pricing will follow.
I agree, differentiation is crucial. That's why it's one of the three key pillars we help agency owners to get right. This video was intended to be specifically around pricing strategies. Unfortunately I can't cover everything in one video. However, if you watch some of my others, you will see I"m a big advocate of differentiation and have some specific strategies around creating a blue ocean. Supply and demand does dictate price, this is very true. However, this is only applicable to a commoditised market. If agency services are seen as a commodity, that's a totally different problem. Thanks for your comments and thoughts, I appreciate your input
Agree, but there is good advice in this video. I think for starters your point is valid. You cannot charge high project prices because you have to put in the work first to get clients and build a portfolio. But I agree if the quality is there and you have some nice projects under your belt you can apply the advice from the video.
@@dutchdaleyy Just as with all markets, your pricing should be inline with others of similar quality. To charge premium prices (for any good or service), you need to have a firm grasp on your unique selling proposition and answer the following questions: - What do you do - Who do you do it for - Why are you better than the competition If you can answer all three confidently, then you can charge significantly more than an average/generalist designer. I recommend finding a niche and dominating it. With specific expertise in an industry and/or service AND the highest quality in that space, you're likely going to face much less competition and as a result, will be able to raise prices accordingly.
You either discount to make 10% less or make nothing at all. Your choice. Also there are many ways to go with pricing. If your true rate is $100/h, tell your client you charge $150, if they says no, then drop it to $125. They think they get a good deal and you make 25% more.
If scope and price are set from the get go it's perfectly clear that they get what they pay for in the agreed time. Fixed price needs you to do the requested thing as fast as you can to maximize profit Hourly billing doesn't incentivize fast delivery (less time equals less money), Cheap fixed price offers will compromise quality when time runs out and the project loses profitability. Arguing against hourly billing is rather easy, comparison with "the cheap guy price" should only be done based on value and quality.
Got Much Value, One thing to share is that these things don't work on Local Clients and International Clients are hard to get. But It really Helped me alot, Going to watch Chris's Video now. Don't be Original
But how can we attract clients? If we are not at any freelance place like Fiverr, people charge less money which makes it difficult for new sellers like us to charge more. And I have lost a client cause someone was doing the project of 180$ for just 7 bucks. I mean that dude is just crazy. And people also say that O it's not that difficult for you to do, than why you're demanding so much?
@@Matt_Essam I meant to say that in freelancing places where competition is already high, everyone is trying to be as cheap as he or she can, which makes it difficult to charge the right money. So to get money we have to get potential clients for this and of course we can not find those clients where client has tons of cheap options to choose from. So it all boils down to getting the right client
@@salihaadan4071I disagree. There are plenty of freelancers I have used on Upwork that I’ve paid very high rates for. I did this due to my perception of their ability to solve the problem I had. I don’t look for cheap. I look for ability to solve a specific problem in a reasonable time frame. It sounds like the problem is your ability to demonstrate value.
@@salihaadan4071 There is a good saying - do not try to argue with a fool in his field, he will crush you with his expertise. It's the same with freelance - clients looking for freelancers are on the hunt for a cheap price, they need a different product. Instead, they can be much more expensive because there is no system, no strategy, no control over the quality and outcome of the services. Stand out from the crowd by offering different outcomes and niche down to scale up.
Prediction comment: Whoever did the thumbnails for that video is between 27-37 because the 69 420 joke is now considered to be very old; it is basically a relic 🤣
“Compare to what?” is such a good question. It acknowledges their concern, but it also reframes the cost back on value. I will definitely implement some version of it immediately. Thanks!
Glad you got an insight around that! Yes please implement and let me know how it goes. I love hearing what people do with these insights
Strategy
Systems
Support
" Do not discount 💰." ...My gem for today. Thank you !🙌🙏🙏🙏🙏
Thank you Futur 😊
Thank you for supporting us!
These are some good takeaways. I gave the first month at a discount. I will try to phrase that as giving a bonus for my next client!
Thank you for sharing the strategy. Bonuses sound like a cool way out of price squashing. It's like one of those sentencess that Alex Hormozi says "you wanna do it for less? I can do it for more". Would be interesting to see examples of packages based on value, not amount of output.
Yea great point. I did try to find better examples around value based packaged pricing but people were a bit guarded about sharing them unfortunately.
Thanks for this wonderful video. I’m still at a loss to how to ‘value’ branding and brand marketing.
I have recently been able to articulate the importance and value of the designed outcome - but not actually quantifying these in dollar or engagement percentage - and I haven’t yet come across a system that does aside from clicks on website/ad and UTM tracking.
But usually branding comes way before any of this. So can we just say to founders and proprietors that “branding is the very core of your audience engagement and thus impacts the sales ceiling of your offering? It’s the first door people open to your brand?”
Unsolicited Member Feedback/Request: I really do love all the content I've seen (there is always something to walk away with) but the time cost is borderline detrimental. What would be tremendously valuable as a membership perk: condensing these things down exponentially in a way. I'm sure it's a challenge to build content that builds rank/watch time vs. pure reference material and knowledge-base content for members. Perhaps that's the real benefit to membership: content that's made that concentrates and delivers maximum value per second/view so we're not wading through a 30 minute video to get a page worth of content. This all might exist in some other feed I haven't discovered yet but thanks all the same!
our analytics seem to indicate the opposite. Our longer form content is actually viewed more than cutdowns. you might be the exception here. people are asking for longer, less edited content because they want to see how the ideas unfold. what do you think?
Very helpful, the word differentiate describes the elevation of your brand by your participation, asking a client how do you differentiate yourself allows you to divide and conquer in all the good ways
Great job Matt, lovely breakdown. 👊🏻🤩🚀
Thanks dude!
Watched this before meeting a client that requested number 1 & 3 because of 2, and when I presented the work he did 4 which led to all of this. And then I get to the root of the problem: it's always been hourly for him. I'm switching to blocks, this video convinced me to telegraph this to him today.
Update: very receptive. Hasn't seen him in a while, hourly made it too difficult bc no clue what he gets for the time.
Glad it helped you to get a different perspective and move away from hourly pricing. Thanks for sharing your thoughts!
3:00 is not a mistake in wedding or events photography. unless you wanna shoot afterparty and the morning after.
love Matt, would like to see him even more often on the channel :)
More to come!
Nice! Quite helpful. Thanks
This is so good. See you in September. Thank you
What’s in September?
@@thefutur THE FUTUR -Registration confirmed for Office Hours: Business Breakthrough Workshop with Matt Essam
We'll send you a reminder before the event.
While there is some good advice here, there is an equal amount of bad advice. As somebody who has run a successful agency nearly 20 years, you glossed over a few key points. Your video acts as though you’re pricing in a vacuum. That couldn’t be further from the truth. In reality, we are competing in a free market and therefore driven by supply and demand, competition, etc.
The only way value-based pricing works well is if your agency is perfectly positioned with little or no competition. If you know what you do, who you do it for, and are confidently the best in the world at it, then congrats! You can charge whatever you want!
But for the rest of us mere mortals, our pricing will be, in part, driven by market forces so there is often a ceiling. You need to find out how much your equivalent competition is charging and your price needs to be realistically in the same ballpark. Otherwise you are going to struggle to sell work. It’s just a hard economic truth.
Want to charge more? You need to be truly unique and better than the competition. Work on your positioning first and then better pricing will follow.
I agree, differentiation is crucial. That's why it's one of the three key pillars we help agency owners to get right. This video was intended to be specifically around pricing strategies. Unfortunately I can't cover everything in one video. However, if you watch some of my others, you will see I"m a big advocate of differentiation and have some specific strategies around creating a blue ocean.
Supply and demand does dictate price, this is very true. However, this is only applicable to a commoditised market. If agency services are seen as a commodity, that's a totally different problem.
Thanks for your comments and thoughts, I appreciate your input
Agree, but there is good advice in this video. I think for starters your point is valid. You cannot charge high project prices because you have to put in the work first to get clients and build a portfolio. But I agree if the quality is there and you have some nice projects under your belt you can apply the advice from the video.
@@dutchdaleyy Just as with all markets, your pricing should be inline with others of similar quality.
To charge premium prices (for any good or service), you need to have a firm grasp on your unique selling proposition and answer the following questions:
- What do you do
- Who do you do it for
- Why are you better than the competition
If you can answer all three confidently, then you can charge significantly more than an average/generalist designer.
I recommend finding a niche and dominating it. With specific expertise in an industry and/or service AND the highest quality in that space, you're likely going to face much less competition and as a result, will be able to raise prices accordingly.
great job
You either discount to make 10% less or make nothing at all. Your choice. Also there are many ways to go with pricing. If your true rate is $100/h, tell your client you charge $150, if they says no, then drop it to $125. They think they get a good deal and you make 25% more.
I've gotten "It's a lot of money i'm chargiung compared to what they can get from another developer"... how do you get out of that comparison?
If scope and price are set from the get go it's perfectly clear that they get what they pay for in the agreed time. Fixed price needs you to do the requested thing as fast as you can to maximize profit
Hourly billing doesn't incentivize fast delivery (less time equals less money),
Cheap fixed price offers will compromise quality when time runs out and the project loses profitability.
Arguing against hourly billing is rather easy, comparison with "the cheap guy price" should only be done based on value and quality.
Got Much Value, One thing to share is that these things don't work on Local Clients and International Clients are hard to get. But It really Helped me alot, Going to watch Chris's Video now. Don't be Original
Awesome! The video was of great help sir.
come in so can watch you work!! lmao. WHY WOULD ONE CHARGE BY THE HOUR ANYHOW?
But how can we attract clients? If we are not at any freelance place like Fiverr, people charge less money which makes it difficult for new sellers like us to charge more. And I have lost a client cause someone was doing the project of 180$ for just 7 bucks. I mean that dude is just crazy. And people also say that O it's not that difficult for you to do, than why you're demanding so much?
Attracting clients is a whole different topic and requires and therefore requires a different strategy. This video is specifically about pricing.
@@Matt_Essam I meant to say that in freelancing places where competition is already high, everyone is trying to be as cheap as he or she can, which makes it difficult to charge the right money. So to get money we have to get potential clients for this and of course we can not find those clients where client has tons of cheap options to choose from. So it all boils down to getting the right client
@@salihaadan4071I disagree. There are plenty of freelancers I have used on Upwork that I’ve paid very high rates for. I did this due to my perception of their ability to solve the problem I had.
I don’t look for cheap. I look for ability to solve a specific problem in a reasonable time frame.
It sounds like the problem is your ability to demonstrate value.
@@salihaadan4071 There is a good saying - do not try to argue with a fool in his field, he will crush you with his expertise. It's the same with freelance - clients looking for freelancers are on the hunt for a cheap price, they need a different product. Instead, they can be much more expensive because there is no system, no strategy, no control over the quality and outcome of the services. Stand out from the crowd by offering different outcomes and niche down to scale up.
Never again! Thanks 🙏
Prediction comment: Whoever did the thumbnails for that video is between 27-37 because the 69 420 joke is now considered to be very old; it is basically a relic 🤣
I think all 3 fir me 😢
🔥🔥🔥
All of them 💔😭
1st client wtf Question, it is easy to make, make it in one year work in one day.😅😂