Professional Documents
Culture Documents
by Liam Veitch
In a recent chat I had with author of the book Double Your Freelancing
Rate Brennan Dunn, we talked specifically about this issue. Indeed,
Brennan managed a larger consultancy before deciding to go freelance
and now tells his story via his podcast and books. Heres what he says
on the issue:
Nobody was ever hiring me just because I knew
how to write code, theyre hiring us to solve a
problem that exists in their business. The coding
was the medium to get to that goal, when I
focused on the goal rather than the skill it made it
easier to justify my services as an investment.
In this short guide Im going to walk you through my methodology
for pitching freelance services. In doing so I hope to enable you to
overcome your own fears on pricing and enable you to think a little
differently when preparing that next proposal.
To help you get a little perspective on this, I want to give you some
reasons your clients DONT buy. Youll notice that price in isolation is
not a factor. Sure, you have to be competitive and realistic but what
is realistic anyway? Is $10k a realistic price for delivering $20k in profit
for a client? Sure.
Does the client care whether it takes you 10 hours or 1000 hours to
achieve that goal? Of course they dont. Ultimately if you are getting
pricing objections its an issue with the value proposition youve put
forward, not an issue with the price itself.
It is your responsibility to justify the perceived value of your service.
Well go onto that shortly but first, lets take a look at why prospective
clients dont buy:
In doing so Ill give you 5 quick tweaks you can make right now to
tackle client objections before they arise, repositioning your message
to get solid commitment where before there was only a luke-warm
handshake.
Stacking these tweaks will give you the compound changes required
to make your freelance clients value, and then WANT what youre
offering, ensuring you can take a shortcut to the top of the pyramid of
excellence.
Rework your proposal content to ensure that the upside comes first.
Ensure that your pitch addresses and overcomes:
> What outcome do they desire and are you addressing how your
service will solve that?
> What would they want out of your service and how do you deliver?
> Does your content address the challenges the prospect believes they
have?
> Does your proposal address the benefits they believe someone of your
skillset can provide?
> Which fears have brought them to your door and how might you
overcome them together?
By just reworking your thinking a little more in terms of what a client
expects and desires can help you create a powerful message that
begins to justify any pricing model.
If youre still copying the intro from previous proposals you are
regurgitating a message which tries to be all things to all prospects,
often serving no one person fully, this all contributes to a lack of
excitement on the part of the client.
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If you can, use video its much easier for your prospect to identify with
the human emotion within the testimonial. This is a killer technique.
This is the next best thing, but for extra cayenne pepper include a
link with the option to dont take our word for it, contact this person
yourself for a verified response. Youll be surprised how few people
will take this up, but the mere offer of a direct email to one of your
customers is so powerful.
An easy way to validate that you are the real deal is to check out your
social standing online. If you are active in the community and have
some solid social proof youre going to certify yourself as a provider of
repute.
Sometimes its difficult to see the wood for the trees as this technique
is used so frequently but in certain tech situations it does carry some
clout!
Are you validating your claims with easily verified trust factors and
introducing these into your proposal strategy?
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A free session where you and prospect walk through how you can
start and what your vision is for the project. Your job here is to get the
prospect really excited about doing this. So excited in fact they commit
to the job after the meeting.
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Tread carefully with this one. The name says it all, but if you are
confident in what you are delivering and you can justify the risk of pay
on performance it can prove to be the no brainer required to push a
client into buy mode.
When you spell out the reasons your client doesnt buy, it begins to give
clarity on what pushes their buy button. At this juncture its important
to ensure were on the same wavelength here when it comes to being
comfortable with value-led pricing.
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>
>
>
>
What is holding you back from hitting the targets you currently
Leveraging these techniques will give you the comfort you need to
justify in your own mind the basis for your new pricing structure, along
with ammunition you can build into your messaging when it comes to
creating the proposal.
Moreover youre already building a sense of collaboration and trust
between you and your prospective client.
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I liken this to the cost-plus (hourly rate) pricing model. You are billing
for what the client can see, only at that moment in time. But what
about the years spent learning, tools youve invested in, things youve
sacrificed? What about the expertise, experience and value that lies
beneath? By billing only on what is above the surface at that moment
in time you are undervaluing the rest of what makes you, you.
Top bracket freelancers understand deeply that even though they do
estimate the length of time it takes to work on a project this time
expense does not define them or their cost, they are not a collection of
hours, they are an asset. This sense of pride and appreciation of what
lies beneath enables them to be infinitely comfortable with their pricing
structure, even if the math ends up showing $150 per hour on the
project.
Pricing is trivial once value has been justified, so create your own
price, move away from a commodity-based pricing model and meet the
goals
have.
Hourly you
Ratesyourself
Dont Matter
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I often speak on this topic and have questions from service providers
who offer services which seemingly offer no monetary upside. The
good news is this is very rarely the case.
With a simple exercise called So that you can normally dig your way to
the monetary aspect.
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I need a VA
So that?
So that I have some support with admin
So that?
So it saves me time
So that?
So that I can spend 10 hours per week on other activity
Gotcha
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Build value
2.
3.
The purpose of this book is to give you a holistic view of the valuebased pitch landscape so it would be remiss of me to leave you without
a structure guide to building out a kick ass proposal.
So here it is.
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If you really dont feel comfortable picking precise figures, or you just
havent been able to gather specific enough information you should
be spelling out the beneficial factors here in terms of business growth,
brand awareness, whatever and allowing your prospect to join the dots
in terms of what the value is to them.
You will have a sense of what this upside is yourself but if you dont
feel comfortable putting it down you can leave it out, just ensure this
forms the basis of your pricing.
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Youll find your prospect clambering for a name rather than say hang
on a minute, I havent hired you yet.
To be clear, each one of these sections doesnt need to be horrendously
long, nor does it need to add anything more to your current sales
process. Often proposals are put together more for the benefit of the
freelancer than the client. The objective of a value stacked proposal
like the one Ive laid out above is to reverse that.
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If youre billing on the value you provide time is no longer a factor. You
should bill for the completion of a project. If that project is inherently
time related however, you should bill based on a significant chunk
of time, so the project in this instance would be the next quarter of
activity.
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