S1:EP23 Creator Interviews: Mark Stiving

In this episode, we interview Mark Stiving, a pricing strategist, on how to properly price products and services in the creator economy. They discuss the importance of value-based pricing and the different pricing models that can be applied to digital products. They also explore how to determine the value that a membership community provides and the steps to identify and articulate the problem, solution, result, and value of a product or service. The conversation emphasizes the need for creators to understand the value they deliver to customers and price accordingly. The conversation explores the concept of value-based pricing and how it applies to both B2C and B2B businesses. The key is to understand the transformation and value outcomes that your product or service provides to customers. By focusing on solving a painful problem and communicating the value effectively, you can determine the right pricing strategy. It's important to continuously evaluate and adjust pricing based on customer feedback and market conditions.

Resource Links:
Find Mark on LinkedIn here → [https://www.linkedin.com/in/stiving/]
Visit Mark's Website here → [http://www.impactpricing.com/]

✨ Key Takeaways:
→ Pricing is a massively underserved and undervalued topic in the creator economy.
→ Value-based pricing is the only pricing strategy that makes sense - charge what a customer is willing to pay.
→ The most common pricing models for digital products include one-time fees, monthly subscriptions, and usage-based models.
→ Understanding the value that a product or service provides is crucial for determining the right pricing.
→ In B2B pricing, value is measured in incremental profit, while in B2C pricing, value can be based on time savings, ease, and emotional transformation.
→ Articulating the problem, solution, result, and value of a product or service helps in pricing and marketing.
→ Small price changes have little impact on customer decisions, so creators can experiment with pricing to capture more value. Value-based pricing is the only strategy to adopt, charging what customers are willing to pay.
→ Understand the transformation and value outcomes your product or service provides to customers.
→ Continuously evaluate and adjust pricing based on customer feedback and market conditions.
→ Communicate the value effectively by focusing on solving a painful problem and addressing the specific needs of your target audience.
→ Consider packaging your offerings in a way that delivers a continual stream of value.
→ Build proof points and social proof to elevate the perception of value.
→ Don't be afraid to increase prices as you deliver more value and gain confidence in your offerings.
→ Value is measured in incremental profit for B2B customers.
→ Use tools like the valuable features exercise to understand customer preferences and prioritize value.
→ Regularly review and optimize your pricing strategy to maximize revenue and growth.

00:00 Introduction and Importance of Pricing in the Creator Economy
07:21 Exploring Different Pricing Models for Digital Products
14:29 Determining the Value of a Membership Community
23:54 Articulating the Problem and Result for Effective Pricing
25:22 Understanding the Value for Better Marketing and Pricing Decisions
27:18 Conveying Value through Packaging and Communication
30:09 The Continual Stream of Value in Subscriptions
34:29 The Hidden Competitor
41:16 The Challenge of Pricing
45:01 Value and Incremental Profit

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