5 Ways To Attract 4 or 5 Figure Deals As A Service Provider
It's believed that attracting lower fee clients is a lot easier than attracting higher fee (or premium) clients.
That statement is based on the idea that high paying clients are hard to find, so most people end up settling for just about anything. I believe anyone can charge a higher fee, but only if he/she has built up trust and momentum towards that goal.
Many service providers believe in competing on price, and in so doing, they reduce their fees to the lowest they can get to, in hopes of attracting new clients.
The problems with this concept are two fold...
- You end up reducing the core value of your services (in other words... your perceived value drops)
- You end up working on projects far greater than your fees (fancy having clients who are prone to asking for more than they pay for? Good luck with that!)
Worst of all, you become a commodity, and when you put yourself in this position, it becomes difficult to really make a reasonable amount of money each month. When your income suffers, you business suffers. This is usually a very tough place for service providers!
Of course, if you do your work well, there's a chance you might get a referral or two, but here's the thing... you can't really sustain your business on referrals.
There comes a time when that flow stops, and if you don't have a system to bring in new clients (apart from discounting your services) or reactivate existing clients, then it'll be an uphill task with your sales.
Now, I'm not bashing anyone who is feels comfortable following the above mentioned client acquisition pattern. The truth is, this post is really NOT for everyone, but only for a select few. So, if you're starting to get defensive, then it's best you stop reading from this point.
Let's get into the real deal here...
#1. Purge The Negative Beliefs
How often have you tried to raise your fees, and then decide against the idea? This is usually the primary reason most service providers find it difficult to charger higher fees.
Most people believe they need to be some sort of "celebrity" to do so, while some believe they need to get a lot of certificates, to validate their reason.
Here's the hard truth...
Gone are the days when those things used to matter. We have seen people who were considered "nobody" rise from the rut to achieve great results (some even without a University degree). We have seen MSc, Bsc, Phd, etc, holders barely making a living from their skills and profession.
Whether you have qualifications or not, everything lies within your mind. If you believe you are not worth higher fees, then you are right. But if you believe you are, then you are also right... but it's a matter of actually stepping up and building towards it.
When you are prone to allowing society or naysayers determine what you are meant to do for your business, then you are going to keep selling yourself short.
You'll then wonder why the people who started years after you are now making head way, while you're still in the same position, barely keeping the lights on.
#2. Build Confidence By Learning Everyday
I got confident in writing by actually writing. I didn't sit back hoping and wishing. I did it almost everyday, until it became second nature.
So many people go through certain rituals, but still stay stuck in the same spot, and then wonder why it's not working for them.
If you really want to start charging higher fees for your services, you need to be confident that you can do it. That confidence comes from what you know. Knowledge is progressive, and you can't afford to play catch up in this day and age.
Consistent improvement of your skills and knowledge will help you stand out, even when there's so much competition. The primary thing to focus on is the results you can deliver for your clients, through the knowledge and skills you have acquired.
That's why I create and share content as much as I can. To help those who need the information. But don't stop by just reading... put it to good use!
#3. Focus On One Thing
I believe you understand the concept of a USP (Unique Selling Proposition), and if you do, then this aspect will make sense to you. However, the whole USP concept is dying a slow death... enter DSP - Dynamic Selling Proposition (I'll talk more on this, hopefully on another post).
So many services providers believe that by presenting the multitude of things that they do, they will close a lot of sales. Have you ever heard the word "overwhelm"? Yup! That's what your prospects will end up feeling, when you bombard them with too many services all at once.
In order to figure out what your DSP is, you need to look at the services you have been providing and ask yourself this question...
What is the most common problem my clients bring to me, when seeking solutions?
When you figure that out (you can even survey them to find out more), you can then create a Signature Service around that problem.
I'm not implying that you should neglect that rest of the things you do... all I'm saying is that you should offer something of high value, that meets a specific need, and then you can add the rest on the backend (if necessary).
"A confused mind never buys!" - high paying clients do not beat about the bush. They need a problem solved; are you the person they can rely on?
DSP E.g. - if you are a Virtual Assistant who helps CEOs with admin work, rather than say - "I'm a VA" (everyone else is saying that, and it doesn't serve you well)...
You could say - "I help busy CEOs become more productive, by reducing 35% of their workload" - a bit wordy, but I hope you get the idea behind it.
#4. Build A Good Level Of Trust
This topic will be in most of my writings until it sinks in. You may attract low fee services by reducing your price or offer some bonuses in line with your core offer... but a premium service does not work that way (most of the time).
I guess that's the reason most people don't go for it, because they don't want to put in a little effort to raise the bar.
So, let me ask you these questions...
- Are the service providers charging higher fees better than you?
- What is it that they really have that makes them special and confident to charge higher fees?
- What makes people rush towards them all the time?
Did I hear you say "TRUST"? People who pay premium are not buying their way into a problem, but they are buying their way OUT of it. When they SEE the value, they will be more than willing to pay. Now, I'm not trying to sugarcoat it as an easy process... of course, there's work to do to get to this point.
Here's the psychology behind why people pay higher fees (there are a lot of them, but I'll share these 3 here):
- They are paying for the value of the result they will get
- They believe higher fees means high level services
- They want exclusivity and more of your time
To get to this level you must learn to speak their language (empathy). And of course, these types of clients are not the ones who just click a button and buy stuff... they believe in building proper connections.
If you make yourself available (face to face, on the phone or via Skype), then you can very well get them to commit to buying your services.
#5. Dedicate Your Time To The Right Prospects
Many believe that high paying clients do not exist on social media; some say they are not on Facebook, but only on Twitter and Linkedin.
I beg to differ! High paying clients are everywhere, you just need to look closely (got 2 off Facebook in the month of May, without spending money on paid advertising).
Now, there are times when I do offer my services at a very low fee, but that is not a consistent thing. I only do that when I perceive the individual really NEEDS help, and may not be able to afford my full fees.
With that said, it's not a common practice with me, that's why I write blogs. To help those who may need the information, regardless if they become my clients or not.
Time is something we ought not to toy around with, and as a service provider, you need to leverage your time effectively, by spending it with prospects who really NEED what you offer.
Tire kickers can drain your energy, if you are not careful, and in order to avoid putting yourself in this situation, you can create a qualifying system (i.e. filter through, and only speak with the right people).
If I'm advertising on Facebook, I usually follow this 5 step process...
- Identify and attract my ideal clients
- Offer an incentive to get their details
- Educate them with value based content
- Invite those interested to speak further
- Qualify and close the deal
This is not a one size fits all system, but if you understand the principle behind it, you can as well implement it within your business, and attract the types of prospects you want to spend time with, prior to them becoming clients.
Wrapping Up!
By now you're probably wondering if this is something you can actually do within your business (i.e. charge 4 or 5 figures).
Here's something I discovered about achieving results when it comes to attracting high paying clients... it's NOT about what you know, it's about what they WANT/NEED, and your ability to DELIVER results!!
When you recognise that fact, and then apply what I've shared here (at least the ones that resonate with you), then you are a step ahead of your competition.
Benefits of higher fees:
- Stable monthly income
- Committed clients (yup, these guys will do what you tell them to do)
- Fewer commitments (you can work with only 4 clients each month)
- Ability to reinvest in your business (marketing and sales)
- Time leverage (want to go on vacation? You got it!)
- No more confusion on what to offer
- Structured delivery process
The possible 'cons' would be that it takes time, dedication, patience, and consistency to build this level of trust; which many are not willing to pass through. The first sale is usually the hardest, but when you get past that, you're on your way to the top.
I hope you found this helpful? Have your say on the comments section.
To your 'high level' success!
Otoabasi Umonting
P.S. If you'd like to learn more about me, check my profile here on Digital Doughnut for more info; thanks!