It might just be the most stressful decision you ever have to make: Do I move forward with the dream of being an entrepreneur or nah?
You’ve got the competition to consider, your actual skill set vs. what you perceive to be your skills (Yes, this is different from the former for most of us. I hate to break it to you 😊) what your market will pay, and a host of other variables. Working these issues out in the beginning can feel like a hurdle you can’t quite get past.
Of course, there are sales strategies to consider. No sales means no income. There are 3 types of markets any business can sell to. They are:
Cold Market: these are people you don’t know and who don’t know you (hence where the term cold calling comes from) an example of this is telemarketing or those people in the mall who work my last nerve yelling to come inside their store. Lol!
Cold market sales only occur roughly 2% of the time on the first try. This is because this type of selling is viewed as intrusive. Ya think ? Many people end up frustrated in their efforts from trying to sell to cold market and quit their businesses as a result.
Warm Market: these are people you’ve made contact with friends, family or leads/followers/subscribers that CONSENT to hearing from you about your business. You will end up frustrated expecting family & friends who haven’t given their consent or expressed interest in your business to bear the burden of buying from you.
That’s not the way to reach your income goals either. (Don’t get mad or guilt them into anything because they buy from other brands because those brands invest money in advertising to them and you haven’t.)
This market WILL buy from you when you establish a relationship with them where you consistently provide value. 80% of sales happen in this market between the 5th -12th contact.
Hot Market: these people have bought from you before and are pleased with the results. This is the market that will give you referrals and will continue to buy as long you make them feel special. This is your tribe!
Now raise your right hand & repeat after me: “As of today I do solemnly swear to stop trying to sell to my cold market, throwing shade to my lukewarm market (family & friends) for not investing in my business, and I will from this day forward focus on providing value first. I will treat those who have bought from me as precious cargo and make them feel special!”
But what about all those other questions?
You will need to decide how you plan to market your business in a way you can be consistent with. For me that is FB livestreams, blogging, and Instagram.
For you it can be podcasting or videos, live events/presentations. Whatever you truly enjoy and will do on a consistent basis. Once that is done you need to create solid pricing that your market is willing & able to pay.
Creating a solid pricing structure requires you to do a little more digging. So with your starting number in mind, take a look at:
Your Competition. Depending on the industry this might take a little detective work, since a lot of coaches and service providers don’t publish rates. But if you pay attention to their websites and social media, & ask a few discreet questions,you can figure it out.
Be realistic about who, exactly, your competition is, though. Don’t undervalue or over-sell yourself. In other words, make sure you’re comparing yourself to another provider who shares the same skills, market, and track record, rather than simply looking at who you strive to become. I’m not with the charge high end with no experience movement.. umm no
Your Skills. In some fields, this is easy. There are certifications and educational programs that allow you—by virtue of having achieved them—to charge a certain rate. If you’ve followed this path, then pricing will be easy for you. If not, take a solid look at what you can legitimately claim as a skill.
Look, too, at your track record. Please #fixitjesus have mercy!
Have you proven yourself by helping former clients (and do you have the testimonials and case studies to show for it)?
Have your former clients moved on to bigger and better things after working with you? (That’s a good thing!)
These are all reasons to maybe consider a higher price range than you might have first thought OR to not expect 10k in 10 minutes comparing your beginning to someone else’s middle. Just saying..
Your Market. In the game of setting rates & making sales, it’s your market that has the final say. As any first year economy student can tell you, the price of anything lies where what the buyer is willing to pay meets with what the seller is willing to accept.
If your goal is to give newbies a helping hand and lead them down the path to success, then realistically that means you can look forward to lower paying gigs. That’s not a bad thing—everyone has to begin somewhere—but it does need to be acknowledged.
If, on the other hand, you’re target market is more established and economically stable, then a higher fee isn’t just warranted—it’s a MUST (provided you have the experience to match). They will expect a higher price, and will not find value in the lowest-cost provider of anything, whether it’s lipstick, coffee or coaching.
Finally, don’t forget that your income as a business owner is never set in stone. It’s flexible boo! If you find you’re attracting the wrong market (or no market at all) you can always change your rates. So don’t despise the days of small beginnings. Keep going!
Once you’re established if you feel that you’re working too hard for not enough return? Raise your rates.
It’s your business. You get to call the shots!
Until next time..