Use Tiered Pricing to Make More Online Sales

Use Tiered Pricing to Make More Online Sales

Setting the right price for your products is tough.

Too high, and you’ll struggle getting people in the door. Too low, and you risk not only flooding yourself with too much work, but that the clients you do get don’t even value the work you’re doing or your expertise. That’s not ideal either…

It’s a hard call, then, on the price to set. But its not be as hard as you might initially think. In fact, there’s an easy way to cater to a wide variety of clients, at a wide variety of price points. You need tiered pricing.

 

What is tiered pricing?

Well it’s simple.

Instead of offering one price and one service, you put together different packages that cater to three different price points.

Sometime more get used (lots of SaaS companies these days offer five or more tiers), but I like three. There’s a power in three.

The number three occurs at almost every level in our world down to the very laws of nature. From the three particles that make up the building blocks of atoms (proton, neutron and electron), to the nursery rhymes your parents read you as a kid.

Three is everywhere, and we’re conditioned to it.

You need to tap into this.

Offer three versions of your product, at three different levels.

 

What tiered pricing actually looks like…

Click pricing on almost any SaaS website and you’ll see this in action, so I won’t bore you with a ton of screenshots. Instead, here’s what it looks like…

  1. This is the bare bones version of your product.
  2. This is the product you actually want to sell.
  3. This is the most premium version of what you can do for a client.

 

Breaking down the “essentials” package

Under the essentials package is “just enough” to give clients who want a taste of what it’s like working with you, some insight into your experience or the product you sell.

It could be something like…

  • $47 for a set of email templates they can adapt to their business
  • $99 for a one-on-one consultation call to review a client’s website
  • $127 for a short (do-it-yourself styled) version of your course

Whatever it is, these are just a “taster” that a client can buy without a large investment. I’ve seen landing pages sell their basic tiered package for $1, enough to push you to make a purchase, but not enough that there’s any pain involved in the decision.

You’re targeting the fence-sitters here, people who want to learn more about you before they commit to a bigger investment. The essentials package is how you get your foot in the door, to add more touch-points to a prospect who is interested, but not yet ready.

 

Breaking down the “recommended” package

Under the recommended package, your job is to put together exactly what you want customers to buy, which is also generally the product that sells the best.

It could be something like…

  • $799 for the creation of an email follow-up sequence for their webinar
  • $1999 for the development of a new landing page layout on their website
  • $997 a month for access to your course, all materials and support channels

Think about your core product, and put it together in a way that just SCREAMS value. You want the decision to be a no-brainer, that a potential client is eager to go with this option because it “just makes so much more sense” than the cheaper, essentials package.

Under the title and the price tag, you’re going to need to list out at least 5 to 10 different parts of the package to explain how it’s better than the “essentials” and reconfirm the value they are getting when they buy.

You’re targeting your ideal prospects with this offer, so make sure you’ve made the package almost too good to refuse, and the only logical choice once they’ve hit this part of your sales funnel.

 

Breaking down the “exclusive” package

Under your exclusive package, the primary goal of this offer is to make your “recommended” package seem somewhat affordable.

It needs to be almost ridiculously priced, but with value that supports the hefty price tag you’re going to stick on it (otherwise you’re going to lose trust with your audience).

It could be something like…

  • $8,995 per month to manage their entire email sequences, inside their CRM
  • $12,999 per month (plus ad spend) to split test and drive traffic to their landing page
  • $17,950 per month for an exclusive, one-on-one coaching and development program

Now there’s a psychological reason for adding such an expensive product here, which I’ll get to in a second, but there’s another good reason to price out a very premium product.

It creates intrigue.

Prospects are going to wonder what you can deliver that’s worth that much, and they’ll start paying more attention to your offer. And this can get the right prospects interested. Not everyone is going to go for the most expensive item in your list, but if you’ve backed it up with all the value they get at this price, the right prospects are already primed to say yes.

 

Why a tiered pricing strategy works so well…

When you start diving into the science behind “why we buy” one aspect in particular comes to mind. You need to make it as simple as possible for a customer to act, so your landing pages should center around a single call to action.

So why does tiered pricing work so well?

Wouldn’t it be counter-intuitive to offer three different options, and potentially just confuse the target customer? Theoretically yes, but it’s not quite as cut and dry in real life.

When you offer a single choice, it’s a yes or no answer.

The client buys.

The client doesn’t buy.

Your ideal customer just has to make a single decision, “do I want this product?”

But when you give options, it triggers another response in the mind of a prospect.

They start thinking, “hmm, which of these options is the best value?”

So, where a client may have said no to a single offer, they’re now thinking deeper.

Looking for the option that gives them the most value.

And they’re right back in the driver’s seat, controlling the outcome of the sale.

Instead of feeling pressured to buy, they’re the one making a choice.

Using the power of three, a prospect feels like they have control over the buying decision.

But let me let you in on a secret.

You already know your “recommended” product is the best value, because that’s how you set this whole thing up. You’ve bundled the packages this way from the start.

 

Here’s the magic of “why” it works…

A prospect looks to the cheapest tier first, the essentials, because the price drew their eye.

But on closer inspection realize it’s not actually going to give them what they’re after.

Flicking over to the exclusive package it sounds fantastic, but PHEW, that price, it’s a little out of the ball park for right now.

“Hang on, what about the recommended package,” the prospect considers.

It’s got everything I was actually looking for…

And that price, well it’s perhaps a little more than I was comfortable spending, but it’s better value for me and my business than the top tier one, so let’s give it a go.

You decided at the start your “recommended” package will be the best deal, but by offering a prospect a choice, your conversion rates will go through the roof.

Plus, you’ll also grab sales from those who can only afford the essentials right now, pulling prospects into your pipeline, into your world, where you can gently coax them into a larger investment at a later date, and who knows.

You may even find a couple of whales who just fall into your lap and are happy to pay VIP prices.

It all starts with setting up tiered pricing.

Much love,

Are you using webinars to sell your services?

Are you using webinars to sell your services

Unless you’ve been living under a rock, you’ve probably heard of webinars as a sales tool. Get a group of prospects together on a call, demonstrate your value and leave them with a pitch for your services. More and more agencies, coaches, consultants and even traditional businesses are using webinars to sell their services.

And for good reason, webinars actually work, really damn well.

Done right, a webinar has the potential to drive sale after sale after sale to your business. Heck, you can even automate the process, so that you’re not even live on the call. You can just sit back, send your traffic to your registration page, and let the software do the heavy lifting. The leads come to you. But why do they work so well?

 

Webinars allow you to build a connection

Hosting a webinar allows you to build a connection with your listeners, and as more and more people dial in, you can start to do this at scale.

Hopefully you’ve woven some personal elements into your story you’re telling on the call, so by the end of it, the people online feel like they know you, they know where you come from, they know what you value and they feel a real connection to you as a person.

That’s key, people buy based on their feelings, and you need to generate this human connection to everyone on the call.

 

Webinars work when you add value first

There’s a golden rule here that I’ve found after doing countless webinars of my own, and listening to hundreds (if not thousands) more. Your whole focus as a presenter should be on the listeners who have dialed in, adding value first, before you even think of pitching anything.

And when I say value, I mean real, actionable lessons they can take to apply in their business today. Spend 80% of your time, adding value during your webinar. You should focus on explaining an industry secret, demonstrating a working solution, or providing some kind of insight that they wouldn’t get ANYWHERE else. Otherwise, why would anyone register in the first place?

Don’t just use a webinar as a sales pitch. You need to add value first, or your listeners simply won’t convert.

 

Webinars cannot be all about you

Building on the value angle, you need to remember it’s not all about you. Your listeners are giving up the one asset they will never get more of, their time, to dial in. Make it worthwhile otherwise you risk losing their respect.

I sat through a webinar recently that was 98% about the speaker. Once we got through her life story, every business success she’d ever achieved, all of the celebrities she knew, and testimonial after testimonial after testimonial, I realized I’d just wasted 40 minutes on a humble brag. The pitch was terrible, she didn’t offer anything of value, and I had zero incentive to act. I actually unsubscribed afterwards.

Don’t do this with your webinar, you need to think of your listeners needs first.

 

Webinars need to push listeners to take action

Of course, I’m not a big fan of hard, pushy sales tactics, but if you don’t give listeners any incentive to act, they won’t. It’s digital marketing 101.

The trick is to strike a balance between becoming a sleazy online car salesman, but to put together valuable add-ons to your offer that have a real and present value. Perhaps it’s free access to another course you’re selling, or individual consultations available to the first 5 or 10 buyers. I’ve even seen live (3+ hour events) give away brand new iPhones.

Yes, it’s cheesy and you need to stay on brand, but there’s a reason to do this. It works.

Just make sure you’re not too, over the top with it.

 

Webinars allow for multiple product offers

Now, your webinar should be designed to sell a single product, but there’s a magic number when it comes to making online sales, and that’s the rule of three. Think back to any landing page you’ve ever been on, and there are usually three versions of the offer.

  • The “essentials” bundle that gives you just enough, but not every feature you need.
  • The “recommended” bundle that’s what the marketer actually wants you to buy.
  • The “platinum” bundle that’s horrendously overpriced, just in case.

This strategy works because it anchors a prospects mindset on the bundle you’re looking to sell. They don’t want the budget version, so this is ruled out, and the $xx,xxx offer you’re offering to VIP customers is way out of budget.

Ultimately, the recommended product you want to sell looks like the best deal, and that’s the one that they buy.

 

Webinars give you a reason to get in touch

If you’ve got any sort of email list for your business, hosting a webinar is a fantastic reason to reach out, get reconnected, and invite them to the session you’ll be running. But not only that, I actually recommend two email sequences around the webinar you host, in addition to the reminders that your software is sending out for registrants to attend the session.

The first, is the warm up sequence. I’ll expand on this in a later post, but I like to use this to add some drama, and backstory before the big event. This way when you touch on it again in your story, you can go a little quicker because people already know all about you.

The second is the follow up. In the days after your event, its prime time to get anyone “off the fence” and taking action. Short, value-adding emails only reinforce the benefits of hiring you, and can push a potential prospect to finally make a commitment to buy.

 

Webinars go by lots of different names

Of course, a webinar is a webinar, but as there’s so many people doing webinars the wrong way, the term “webinar” isn’t actually the best thing to call it. Smart marketers are now using new terms, like an online masterclass, a live workshop, a digital demonstration, or any number of others to drive the number of registrants up.

I like the term “online demo” but when I’m working with board-level executives, they respond better to terms like “digital round table.”

My advice? Test what works best for your offer and your audience, and stick with that.

 

Webinars give you a METRIC TON of data

And your job is to use it effectively.

Make sure you’re testing things like the timing of your presentations, or how a slight variance in your title or pitch may influence the final conversion rate a particular event generates. I recommend segmenting a few different groups based on the date you have.

  • Registrants who signed up but didn’t attend, should be sent a replay.
  • Anyone who stood out (asking certain questions), gets a personal email from me.
  • Active participants, might get a thank you and an exclusive offer to sign up.
  • All other participants, go into the final follow-up sequence.

Remember, the more targeted you can make your emails, the better your chances it’ll actually result in a sale, so it’s important you’re making smart use of the data you have.

 

Without a doubt, webinars are here to stay, and have quickly become a foundational element of digital sales funnels. Smart marketers are already making use of webinars to build a connection with their fans, demonstrate their expertise in a natural way, and of course, sell more stuff.

If you’re still not convinced, I don’t know what else to tell you. If you’re selling any kind of service or product online, a webinar should be a key element in your sales pipeline, otherwise you’re leaving money on the table.

Much love,

Do You Give Clients a Chance to Get a Word In?

Are You Giving Clients a Chance to Get a Word In

You’d think extroverted, chatty sales reps would be good to promote your business, right?

Sure, it sounds like a good thing.

But the biggest problem with a fast-talking sales person is they never shut up.

And that’s a concern, especially when your prospects don’t feel heard.

Ever have a conversation with a loved one and get distracted…

Quickly followed by a “are you even listening to me?”

You know how that story ends.

In this day and age, there’s no place for a pushy, aggressive sales rep.

Not over the long term anyway.

You need to focus less on rattling off the sales script, and get the customer talking.

Stop reciting benefits and features, and actually figure out the problem a prospect has.

Start putting their needs above your own, and pitching a solution they truly need.

That’s when your pipeline gets exciting, and your customers become your biggest fans.

 

Traditional sales training pushes too hard

Watch any movie, from Boiler Room to the Wolf of Wall Street and you’ll see this in action.

Young, hungry sales reps are brought in, and turned into “killers”

With aggressive sales training, high targets, and an atmosphere with zero customer respect.

Pity that Jordan ended up in prison, and most boiler room call centers are borderline illegal.

Because while these sales tactics do work, on a particular type of clientele…

They don’t provide a foundation for any sort of decent customer relationship.

So, what’s the alternative?

 

Put the customer at the heart of the sale

And the easiest way to make the customer the center of a sales call is to listen.

To ask the kind of questions that get them talking.

Get them opening up about their needs, and the motivations behind the deal.

I like to ask prospects questions like…

  • “Tell me, what brought on your call today?”
  • “Explain the help you need from me, in your own words…”
  • “What other solutions have you tried?”
  • “What worked well, what didn’t work so well?”
  • “What does the ideal solution look like for you and your business?”
  • “Is there anyone else we should loop into these discussions?”
  • “What else can you tell me that’s relevant to this project?”

Get them taking, then shut up, sit back and start listening.

Tap the power of the strong silent type

Ever have a friend who was always called the strong, silent type?

There’s a simple psychological technique at play here.

The words you speak have value, and the more you talk, the more you dilute it.

On a sales call, you need to slow down, and speak less.

Because the quality of what you say, is more important than the quantity.

I’ll admit, I struggle with this…

When I proposed to my wife it was such a machine gun barrage of words it took her a few seconds to actually process what just happened.

We laugh about it now, but I do regret not taking a breath first, and slowing the heck down.

Same logic applies to your sales calls.

Too much talking makes you appear nervous and unconfident.

Slow down, speak less, and make your words count.

 

Get comfortable with an extended silence

It seems weird, but I like to play a game when I’m doing a sales call.

Of course, this works best when you’re already on a good run, and the prospect is happy.

You need to get comfortable with silence.

In negotiations it’s a common tactic, as a power play to get the other side to open up

But it also works in sales.

Because silence makes people uncomfortable, so they get nervous and start talking.

Talking more than they normally would.

And when your client is talking this is a good thing, because you listen.

Especially when they’re off-balance.

Because that’s when a hidden motivation or pain points comes up.

And you can use this extra insight to bring the deal home.

 

Don’t play all your cards at once

Now I get a lot of flak for this here in Asia, where things run on “local time”

But growing up punctuality was a big deal for me.

It was a sign of respect, both of your time and those waiting to meet you.

I’ll admit, traffic has often gotten the better of me.

And there have been times where I’ve run meetings far over time.

But when I started looking back, my most successful meetings were the short ones.

Where I was on time, we hit the key points, and I left perhaps even 5 or 10 minutes early.

When I started analyzing why these meetings worked best, I found the key.

I wasn’t playing all my cards at once.

I’d go in, (being punctual and all), and we’d talk about the key issues.

Then, I’d have to run to another meeting and I’d leave… but with a promise.

To send them an email on the points we hadn’t got to,

Or the extra info they’d asked for.

It created a kind of a required follow up, that allowed me to continue hitting touch points.

While demonstrating I was in fact, highly responsive and could deliver on my promises.

It also allowed clients the time to debrief themselves after our meeting,

And come back with any questions of their own.

Of course, this strategy did extend the sales process somewhat,

But the meetings I ran like this had much higher conversions.

So, don’t play all your cards at once.

Leave your clients wanting more.

And close them in the follow-up meeting.

 

When I approach a sales call these days I’m aiming to speak less than a third of the time.

My goal is to get the client talking,

Use extended silences and think carefully in all of my responses,

And give prospects a reason to read my follow up emails,

So, I can close them in another meeting.

It may lack the glitz and glamor of the sales floors we all imagine on Wall Street.

But by giving clients a chance to get a word in, you’ll quickly figure out how to sell to them.

And once you do that, well my friend, that’s when things get exciting.

Here’s to your sales success.

 

Much love

The Power of LinkedIn Connections to Kickstart a Business

the power of linkedin to kickstart your business

Hitting “publish” on a new website is exciting, but…

You need to get the word out.

Otherwise no one really knows it’s there.

It’s like opening a new store in the middle of the desert.

You ain’t gunna get any customers without any marketing.

Now, I was extremely fortunate with my agency, building on the work I’d done for a few past copywriting clients, I had a couple of quick wins and I was cruising on easy street as they sent me a bunch of new leads.

But a couple of months in, business started slowing down.

Word of mouth marketing was working, but referrals just weren’t enough.

And I was still bootstrapping, lacking a big budget to launch a campaign with a bang.

So, I circled back to my network, and decided to double down on a known quantity to drum up some new business.

My network.

 

Tapping LinkedIn for Your Business

As I write this it’s got me thinking I need to reboot this particular gem of a strategy in the coming months.

It’s quite powerful when done right, and I’ll keep you posted how it goes with a new update just as soon as I am done.

But back to this…

I chose LinkedIn for this experiment for a couple of reasons.

It was way better than cold emailing, and as I was just getting my agency off the ground I didn’t have a massive portfolio or decades of experience backing me up to help me win a bunch of new business.

What I had, was a big group of friends.

People I’d connected to at events, other expats, colleagues and former study buddies, even a few old bosses in there.

And that’s a powerful thing.

Plus, I figured if anyone was going to give me the time of day, it’d be someone who already knew me.

Because we already had rapport, so I could jump straight into the “ask” (without having to put a lot of time in, getting to know each potential target)…

HINT: If you’re planning on using this approach with someone who doesn’t know you, it’s not going to get the same results. You need to butter the prospect up first, the prospect has to value your opinion, feel like you actually care about them, and see you as an authority. Otherwise, they’re not going to give up their valuable time, talking to you. 

 

Approaching this thing with a plan in mind…

Well, it wasn’t rocket science.

I downloaded a list of my connections (just head into Settings > Getting a copy of your data, and you can grab these all here).

At the time there were about 1,200 in my list, and I knew I needed to cull these.

Then came the filtering.

I was looking for business owners, preferably in Thailand.

Line by line, as tedious as this sounds, I deleted anyone who didn’t fit my ideal client profile in the excel file.

For the people who looked interesting, I had a look at their profile, and did some digging.

Not spending long on each one, just enough to help me make a gut decision – “Would they be interested?”

Granted, this did take a couple of hours, but it was worth it.

I wanted the people I was messaging to be my ideal clients.

And as the goal was a free consult, I didn’t want to spend the next 3 months tied up on calls and website reviews.

So I was a little brutal culling the list.

When it was done, there were 55 names.

55 people in my network (1st degree connections), I believed would benefit from an upgrade to their website.

It was time for the outreach…

 

Actually reaching out to my list…

Even though I had all their emails, I decided to stick to LinkedIn for the messages.

Remember, we’re talking 2015 here.

This was before the platform became a haven for spammers, and I didn’t want to get lost in their email inbox.

If I were to do it all again, I’d do the same now, but with a careful eye on the response rate.

Potentially switching to emails or even a WhatsApp / SMS to do something different if I wasn’t getting the messages read.

Remember, these are people I know (or am comfortable enough with them to message them directly).

You should be targeting the same kind of people.

So back in my spreadsheet, I added three columns with the titles.

  1. Outreach date.
  2. Follow up date.
  3. Notes.

Very simple, nothing too fancy about it.

I just wanted to track who I’d messaged, remember to send a follow up a few days later, and have a space to put in any notes or comments along the way.

Here’s the message I sent out.

Today, I would

  • Personalize this even more and shorten the message as we’re all on our phones anyway.
  • Drop in some emojis, I like these little guys just don’t overdo it (for god’s sake).
  • Lose the company links, and maybe see how a direct booking link to a service like Calendy works.

So it’d be like.

=====

Hey [Frank], jealous of your Fiji trip 👌👌 we should grab a beer so I can hear all about it.

But the reason for my message – I’m launching a new website service, and we’re doing free reviews of existing sites. Thought of you as I was putting this together mate, goal is to give you some quick wins to make more bookings/sales/whatever.

Interested? 

=====

If you make it as easy as possible to reply, that’s when your prospects hit you back.

Right, so next steps.

Depending on their reply, my targets were either…

  • Not keen (so I’d say thanks and have a good one)
  • Keen (so I’d review their site, and organize a call so I can show them what I think)

The ultimate goal being to position myself as the expert, so they know who to call when they do want to make a change.

And they did call.

Though I will say this.

The way I write my emails and messages isn’t everyone’s cup of tea, and that’s fine.

I’m not trying to be something I’m not, or to make everyone happy.

I send messages like I talk and I don’t work well hiding behind a “face” or a persona.

I just do me.

And it almost becomes a filter to eliminate people who don’t like my style.

And that’s fine, because the people who do respond to it, connect even better.

Those are the customers I want.

 

So, how’d this whole thing go?

Looking over the numbers, I sent 42 messages.

With the exception of one, they all got read (you can see in message if it’s read or not).

Seven of my friends got back to me asking for feedback.

I handled three over email, five over the consultation calls I wanted.

The reason I wanted calls is they’re more personal.

You can cover a heck of a lot more than typing out a mammoth email…

But you can also ask questions, figuring out what they need, what they’re after, and positioning your business as the logical solution to their problems.

Oh, and bonus points if you can keep it light and make them laugh.

Now, a couple of my friends were looking for services I didn’t provide, a couple of people were just looking for free advice, and one wasn’t in a place to make a change. Which is fine….

Because I landed three new clients out of it.

THREE FRIKKEN CLIENTS.

Three new website projects on the books, reflecting a whopping 7% conversion rate on my outreach.

Oh, and zero ad spend.

All up, it was just over 10 hours work.

  • 2 hours refining the list of prospects and writing the messages.
  • 2 hours messaging everyone on the list.
  • 5 hours prepping and doing the “quick consultation calls”
  • And about an hour of admin, coordinating timings, following up, that sort of thing.

That’s a damn good return on investment.

Especially as a bootstrapped entrepreneur.

I wasn’t risking money on a “big and scary” campaign.

It didn’t even take that much time.

And you could even space the outreach out if you’re worried about too much work coming in, too fast.

It’s entirely up to you.

I just know that it works.

And that’s why I need to start doing this again (AND YOU SHOULD TOO).

Much love,