The Friday Habit Stop Trading Your Time for Money with Jonathan Stark - Part 2
Welcome back to the continuation of Ben and Mark’s interview with Jonathan Stark on The Friday Habit podcast. Jonathan says that it is important to determine the metrics that a client is using or looking for during discussions with them about potential projects or else you will never be successful, and they will never be satisfied. Many clients say that they want to be “thought leaders”, but they are really looking for specific outcomes that they feel like would make them thought leaders, so getting to the root of what they want is the key to your success and, in turn, theirs.
When it comes to working with retainers or on a subscription model, it is important to treat each of these long-term relationships uniquely, specifying the outcomes and deliverables for each client and pricing based on the overall scope of the monthly requirements. You are not doing yourself or your client any favors by promising that you will spend a certain number of hours on them every week or every month, so be sure to price based on the value to the client rather than the time it will take. Jonathan specifically talks about the advisory retainer model where clients pay you for your initial strategy as well as variations of overseeing the projects.
Jonathan sets out a detailed and straightforward narrative for shifting your mindset and that of your clients from an hourly pricing model to value-based pricing in a way that reduces the risk for the client and ensures that their project will not go over budget. He recommends that freelancers offer this value-based and risk-reduced pricing model at an 85% markup from their traditional hourly rate.
He also delves into the pros and cons of productized services and the question he asks himself before agreeing to work with a client. The action item he recommends after this episode is to think about your positioning and target market and to educate yourself about value-based pricing, perhaps through his free email course.
Links:
https://valuepricingbootcamp.com
Connect with Jonathan:
https://www.thebusinessofauthority.com/
https://www.linkedin.com/in/jonathanstark
https://twitter.com/jonathanstark?lang=en
Connect with us:
https://www.thefridayhabit.com/
thefridayhabit@knapsackcreative.com
https://www.instagram.com/benjaminmanley
http://www.benjaminmanley.com/
https://www.brandvivamedia.com/