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How do I price my Lead Gen service?

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Chapas

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Whenever I am in doubt about something business-related, I always know that I can get help in here from my fellow bright fastlaners.

Story short is that I have found a way to get consistent warm leads through webinars for our high-ticket products (40,000 to 400,000 USD) at my slowlane job. Now I want to see if I can actually make a business out of this and possibly go from the slowlane to the fastlane.

The question is though; how much can I charge my future clients and what is the most efficient business model in this case?

My ideal customers would be companies selling B2B products/services from 4,000 USD and more. This could be software, animated videos, marketing services, courses etc.

I know that every business is different, and it also comes down to the ability of closing the lead. I can bring as many warm leads in, but if the business cannot close them, then we have a problem.

My strategy is not only consistent, but it also has a snowball effect. Meaning that the amount of leads will increase around 10 % each month. Keep in mind that these are fully targetted and segmented leads.

So how much would you pay for this service?

Let's say you own a B2B software company where your average sale is 5000 USD.

In the first month I will be able to deliver you 30 warm leads, and 30 semi-warm leads. This amount will likely increase each month. So next month will be 33 warm and 33 semi-warm and so on.

The only thing you as a business owner would have to do is to host 1 webinar á month and have a way to close these leads (inhouse sales team or outsourced tele marketing).

I take care of everything else. Pre-webinar and after-webinar.

My initial thought is that a serious company over time should be able to convert at least 2 out of these 60 leads into customers. In this example it would mean an extra revenue of 10,000 a month. An almost passive extra revenue for the company.

Of course nothing is guaranteed, and the fact that it works for my slowlane company, doesn't mean it will work for others. However, we are in an extremely touch niche and have some seriously premium-priced products. So honestly, I actually believe it will work even better for lower-priced products in a more broad niche.

Really interested in hearing your thoughts on this guys! Also hope to create a progress thread when I give it a go :)
 
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Martin Z

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Whenever I am in doubt about something business-related, I always know that I can get help in here from my fellow bright fastlaners.

Story short is that I have found a way to get consistent warm leads through webinars for our high-ticket products (40,000 to 400,000 USD) at my slowlane job. Now I want to see if I can actually make a business out of this and possibly go from the slowlane to the fastlane.

The question is though; how much can I charge my future clients and what is the most efficient business model in this case?

My ideal customers would be companies selling B2B products/services from 4,000 USD and more. This could be software, animated videos, marketing services, courses etc.

I know that every business is different, and it also comes down to the ability of closing the lead. I can bring as many warm leads in, but if the business cannot close them, then we have a problem.

My strategy is not only consistent, but it also has a snowball effect. Meaning that the amount of leads will increase around 10 % each month. Keep in mind that these are fully targetted and segmented leads.

So how much would you pay for this service?

Let's say you own a B2B software company where your average sale is 5000 USD.

In the first month I will be able to deliver you 30 warm leads, and 30 semi-warm leads. This amount will likely increase each month. So next month will be 33 warm and 33 semi-warm and so on.

The only thing you as a business owner would have to do is to host 1 webinar á month and have a way to close these leads (inhouse sales team or outsourced tele marketing).

I take care of everything else. Pre-webinar and after-webinar.

My initial thought is that a serious company over time should be able to convert at least 2 out of these 60 leads into customers. In this example it would mean an extra revenue of 10,000 a month. An almost passive extra revenue for the company.

Of course nothing is guaranteed, and the fact that it works for my slowlane company, doesn't mean it will work for others. However, we are in an extremely touch niche and have some seriously premium-priced products. So honestly, I actually believe it will work even better for lower-priced products in a more broad niche.

Really interested in hearing your thoughts on this guys! Also hope to create a progress thread when I give it a go :)
Two things. Provide a value based pricing and target

If your clients make a lot of money already, and you are able to help them make more, then they will pay you a lot.

However, if your clients are broke and are barely getting by, then premium prices will be out of their reach.

Even though you know your product is going to help them, they are still not going to buy it because they don't have the purchasing power.

It's like selling high end exotics. These are out of the reach for the average Joe who only makes $40k a year, these cars cost between $200k-$1,000,000 and up. So e.g. If you were to use some sort of ads to get eyeballs for those cars in Los Angeles, you'd want to target people around Beverly Hills, Malibu, Beverly Glen, Bel Air etc. You wouldn't target people living in Skid Row, South Central or areas with low income in LA. You see what I mean?

I know that we're not talking about cars here, but it's somewhat related because you're asking for pricing. So I'm assuming your clients do have the purchasing power.

It also depends where you're at personally. Are you struggling financially? Then it might be better to charge a little bit less so you get more financial stability. And get some experience under your belt.

But if you're doing well and money is not an issue for you, then try to charge as much as possible.

I recommend reading Alex Hormozi's 100m$ offer. It's a fantastic book for selling B2B services online.
 

Andy Black

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I generate leads for clients but for a flat monthly fee so can’t really advise. Maybe book “Take The Lead” can help?
 
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Chapas

Silver Contributor
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Nov 23, 2014
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Two things. Provide a value based pricing and target

If your clients make a lot of money already, and you are able to help them make more, then they will pay you a lot.

However, if your clients are broke and are barely getting by, then premium prices will be out of their reach.

Even though you know your product is going to help them, they are still not going to buy it because they don't have the purchasing power.

It's like selling high end exotics. These are out of the reach for the average Joe who only makes $40k a year, these cars cost between $200k-$1,000,000 and up. So e.g. If you were to use some sort of ads to get eyeballs for those cars in Los Angeles, you'd want to target people around Beverly Hills, Malibu, Beverly Glen, Bel Air etc. You wouldn't target people living in Skid Row, South Central or areas with low income in LA. You see what I mean?

I know that we're not talking about cars here, but it's somewhat related because you're asking for pricing. So I'm assuming your clients do have the purchasing power.

It also depends where you're at personally. Are you struggling financially? Then it might be better to charge a little bit less so you get more financial stability. And get some experience under your belt.

But if you're doing well and money is not an issue for you, then try to charge as much as possible.

I recommend reading Alex Hormozi's 100m$ offer. It's a fantastic book for selling B2B services online.
Thanks for the thorough advice, Martin!

My goal is to only work with clients who have the purchase power. My initial thought was to price my service at around 2300 USD a month. My take home profit would be 1500 USD per client. Sometimes I think this is too much. But then I realize how much value I provide and how much money they can potentialle make and realize that this price might actually be a steal.

Just an example. Last week I beat our new record again. 109 new webinar leads. 30 of them considered ideal customers with high purchasing power. And this is for a niche market. One of the ideal customers from a 30 billion dollar US company even contacted me herself after the webinar to initiate further talks about pushing our product out to their organization. So this s*** actually works.

I have thought about value based pricing. Because I know that my customers would differ. Those who sells product/services for 5,000 USD would probably pay different to those selling for 50,000 USD. My issue is that I always sell myself to cheap. This is probably because I still lack some sense of confidence in this business world.

I am fortunately not struggling financially at this moment, so I can afford not to take in any client for any amount. But I would be willing to charge less to get some experience under my belt. I guess I just need to test this. At least I have nothing to lose here!

I will definately check that book out. Thanks again!
 

Chapas

Silver Contributor
Read Fastlane!
Speedway Pass
Nov 23, 2014
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I generate leads for clients but for a flat monthly fee so can’t really advise. Maybe book “Take The Lead” can help?
Thanks Andy. I will take a look at the book you recommend. I also thought about a flat monthly fee as I am a fan of transparency and simplicity. Guess I will just need to test different price methods in order to find the right one for me.
 
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Andy Black

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1) In Alex Hormozi's book "$100M Offers" he uses a lead gen example.

Off the top of my head it was:

$1k/mth flat fee (which everyone offers)

vs

Pay a one-time setup fee then pay-per-lead


2) In a Laurel Portie podcast she mentioned her agency clients paid $1k/mth and a performance related amount (it could have been pay-per-lead or % of something).


3) I like flat-monthly fee to start with as it's simple to implement, and simple for some types of clients to understand.

I remember a glass repair guy asking how to pay for our Google Ads management. When I said he could pay for each lead he asked "What's a lead?" ... so I said "Or you can pay us a flat monthly fee plus the ad spend. The ad spend will go up and down based on the number of visitors you get in the month. More visitors would likely mean more jobs." He understood that intuitively.

I prefer dealing with the smaller clients, hence my preference for flat monthly fee.
 

Martin Z

Bronze Contributor
Read Rat-Race Escape!
Read Fastlane!
Read Unscripted!
Speedway Pass
Oct 11, 2021
405
373
Stavanger, Norway
Thanks for the thorough advice, Martin!

My goal is to only work with clients who have the purchase power. My initial thought was to price my service at around 2300 USD a month. My take home profit would be 1500 USD per client. Sometimes I think this is too much. But then I realize how much value I provide and how much money they can potentialle make and realize that this price might actually be a steal.

Just an example. Last week I beat our new record again. 109 new webinar leads. 30 of them considered ideal customers with high purchasing power. And this is for a niche market. One of the ideal customers from a 30 billion dollar US company even contacted me herself after the webinar to initiate further talks about pushing our product out to their organization. So this s*** actually works.

I have thought about value based pricing. Because I know that my customers would differ. Those who sells product/services for 5,000 USD would probably pay different to those selling for 50,000 USD. My issue is that I always sell myself to cheap. This is probably because I still lack some sense of confidence in this business world.

I am fortunately not struggling financially at this moment, so I can afford not to take in any client for any amount. But I would be willing to charge less to get some experience under my belt. I guess I just need to test this. At least I have nothing to lose here!

I will definately check that book out. Thanks again!
You're welcome sir. Webinars are fantastic. Any kind of video format presentation to your clients is such an awesome and underused lead gen strategy(I've never heard any guru talk about it), but it literally makes you standout and people will remember you, which separates you from the competition, especially when you're from overseas or you're selling digital B2B services. It also builds trust instantly since no one really does it, and you can also show your expertise which increases your credibility. You build the know, like and trust factors with ease.

You know how it is in the B2B industry, everyone always pitches clients for meetings whereas you just show they your webinar or presentation, and boom you land yourself a client. Saves you a shit ton of time too.
 

geekboy

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Nov 8, 2013
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Cheshire, UK
You could create an auction system for the leads and let the market decide what they're worth. If your clients start closing 6 figure deals off them then you can be assured a bidding war will ensue
 
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