Home – New Forums Marketing mastery how my client went from $200 clients to $48,000 ones…

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  • #974807
    Jay-T
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    Howzit my fellow solo-prenuer or whatever you and I call ourselves…I’m in the middle of creating a new marketing campaign and as I was writing it it triggered a memory of my first ever client and I thought I would share it with you…maybe it would help you in some way like it has always does for me especially in tough times.

    so here are a few key insights from my very first client who went from working with $200 per month on again off again type clients to making her first big sale of $48,000 in an hour.

    So how did she make the jump from $200 clients to $48k ones? There were 3 main areas:

    One: mindset: I’m a big believer in knowing what you’re worth to another person. Knowing that you have something valuable is empowering (if your product/service is good — doesn’t have to be great) plus it becomes easier to ask for a higher fee (also it rarely ever matters whether it’s a physical product or service as I’ve sold both at high and low price points.) Believing in yourself is key.

    Two: client/customer selection: It takes 240 $200 clients to equal a single $48,000 client and it’s far easier to deal with one client than 240. From my own personal experience it’s easier to deal with high paying clients because the cheap ones (for the most part) tend to complain the most and it’s often times just as easy to sell expensive products and services as it does cheaper ones — this new shift in thinking helped her reach her dream of travelling in months instead of years — selling stuff at higher margins compresses the time it takes to reach your goals.

    You want to work only with clients that have the money to spend on what you have without to much (if any) concern.

    Three: sales scotoma (blind spot): There’s big sales growth hanging out in our business’ blind spots but because we’re in our business every day we don’t see them. It’s like if you own a dog you become “blind” to the dog smell in your own home even though it’s definitely there. One of my client’s scotoma’s was having her focus on her sales process instead of focusing on her product. A lot of us think that the value is in our product when in fact the bulk of the value is created during the marketing and sales process.

    If our process has been designed in the right way then we can create more margin in our product if our process is weak then price becomes important to our clients and when our clients become price focused then we ultimately invite our competition in to play alongside us — not good.

    So the goal was to get her to forget about her product and instead understand exactly what the goals of her client were so that he could see how much it was costing him to not have her by his side and the bigger that cost was the higher she could charge — make sense?

    Still think product is important?

    Her product never changed it was the same product for the $48k client as it was for the $200 client but what changed was how she “sold” the product that allowed her to safely make price irrelevant — she wasn’t a sales person either (this was an advantage) she was just like you and me.

    One last one: the first sale: when you learn something you can never unlearn it. When you make your first big sale then it becomes easier to sell more of them it’s really cool so even if you sell lower priced items create a premium package and pricing because someone will buy it.

    Hope this helps.

    #1070464
    Steve_Minshall
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    All sounds lovely but its not always good.

    Once one customer becomes a big part of your business you become very vulnerable. I have seen big companies suck the life out of smaller suppliers because the small business either neglects the diverse market or does not have the resources to service their new best friend and their existing market.

    I actually had a situation comparable with what you are saying a couple of years ago. My average sale would be say $500 and I was asked to tender on a job worth over $50k. Now, I didn’t bother with the tender because my business was at a critical development stage at that time and I knew if we focused on the tender it would give us a good boost for say 6 months but set the business back in the process. I don’t know if I made the right decision but I know I still have a healthy business that has had steady, manageable growth and I don’t have to kowtow to any single dominant customer.

    #1070465
    Jay-T
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    Yep totally agree with the danger of having just a single client and it’s not something I’d ever suggest anyone do.

    It’s never a good idea to have one of anything in business: one marketing channel, one supplier, one team member who knows all of the secrets of your business etc.

    The idea is to find a way to sell your stuff at higher price points without having to spend all of your time doing it.

    Lets say your goal was to reach $50k per quarter it’s easier to manage 100 clients paying you $500 than have 1000 clients paying $50, right?

    #1070466
    bluepenguin
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    So how did she do it?

    I think you forgot to mention that bit…

    #1070467
    Steve_Minshall
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    Jay-T, post: 87853 wrote:
    Lets say your goal was to reach $50k per quarter it’s easier to manage 100 clients paying you $500 than have 1000 clients paying $50, right?

    Sure is and that is what I do. But focusing on deals worth $500 compared to $50 is a world away from trying to go from $200 to $48000 deals.

    The first can be done by tuning your offering and bundling deals but the later involves a completely new business model to deal with it. So I am not really sure what point you are trying to make.

    As I said I could go from $500 sales to $48000 sales by going after say a fleet deal. But I would have to completely change my business to a point that it is no longer recognisable as what I started with. My gross profit would be massively smaller because a $48k customer would be demanding big discounts. I would therefore have to approach the work in a completely different manner to achieve process savings to maintain my net profit. If this is what I wanted then I should have set up a different business in the first place.

    I find customer complaints is not an issue if you do your job right. We hardly get any and when disagreements do arise you take them as useful feed back. You generally don’t get complaints from big customers because what they say-goes, no argument.

    So I agree you should maximise your income and not sell yourself short but why the 200 to 48k comparison? Please flesh out this real life event so we can see what your client actually did.

    #1070468
    Jay-T
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    Basically what she did was:

    1. Found out her client’s current situation was (sales figures)
    2. Found out what he wanted his sales to be and why that was important (the “why” is very important because it allows you to probe for problems)
    3. Offered a solution.

    That’s basically it.

    ask questions + find the problem + find out the cost of the problem + find out what a solution would ultimately be worth + offer a solution

    Nothing complex but what she doing before that was more product orientated which left her prospects feeling confused and opened up the door for competitors to creep in so we just changed it so that it was almost entirely customer focused.

    It’s a similar process I’ve used in my sales career.

    #1070469
    Jay-T
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    My client was a business consultant and she was severely under-valuing her products.

    Sorry didn’t mention it was $48k per year…yeah $200 to $48k is a big jump :) So she made an extra $4000 per month instead of $200.

    $3800 differential.

    Before she was taking any old job which is fine when you’re starting out to make ends meet but her product was lead generation which can be valuable for business owners.

    The point of my post is not to undervalue yourself it’s ok to charge higher prices if you’re delivering a good service.

    Don’t get too caught up in the numbers Steve I used them because it was a pretty big transformation.

    As far as fleshing out the whole thing out I’m not sure how much I can add…

    • I helped her see the value of what she was doing so that she felt comfortable asking for a higher fee
    • I gave her a basic primer on sales so that she could help her prospect see her value was and how he could reach his goals through her solution

    That’s about it, it wasn’t difficult and it shouldn’t have to be.

    Look at ANY industry and there will exist a premium option…restaurants, dentists, hair salons you name it there are guys charging much more than the rest of the pack for no other reason than they just decided they would serve the top end of the market.

    #1070470
    Steve_Minshall
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    Jay-T, post: 87869 wrote:
    Don’t get too caught up in the numbers Steve I used them because it was a pretty big transformation.

    .

    Oh come on… the numbers are everything:) The only reason I got involved with the debate is because you quoted an outlandish (but not impossible if you restructure your business) number in the title.

    The points you made are perfectly valid but because of the exaggerated number in the title we are debating about 2 completely different things.

    I’ll move along now.

    #1070471
    DigitalDomination
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    Theres a lot of fluff here but not a whole lot of substance.

    #1070472
    nominal
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    DigitalDomination, post: 87903 wrote:
    Theres a lot of fluff here but not a whole lot of substance.

    LOL… this is the sales & marketing forum. fluff by definition. these silly marketing and sales guys don’t write a single line of code – totally non productive folks.

    But this fluff turns out to be awfully tricky…

    #1070473
    tayjooann.com
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    i think the general 80/20 rule is what everyone is talking about?

    Like the rest, i wouldn’t rely on just one stream of revenue, but at the same time, i wouldn’t rely on volumous transactions and overwork myself.

    I guess its about selling the same product over and over again, but also finding a balance between quantity and quality of sales?

    #1070474
    Tony Pfitzner
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    tayjooann.com, post: 87939 wrote:
    i think the general 80/20 rule is what everyone is talking about?

    Most businesses will have 80% of their revenue from about 20% of their clients. This is an example of the oft-quoted 80-20 rule and it is pretty much a law of nature in my experience.

    One way to move up the food chain is to focus on what you are doing with your top 20%, replicate it, and get more clients like them. This way the financial ‘centre of gravity’ of your business keeps moving up.

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