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- How to Charge $5K+ per Client
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1,270 Words | 5 Min 18 Sec Read
Today we’ll be discussing how to construct a service offer you can charge $5,000+ for.
Why $5,000? Because, if you can get your prices to this level, you only need two clients per month to break the mythical 'six-figure' level.
Let’s dive in.
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I'll never forget my first $10,000 month.
After months of slaving away, charging just $250 and $500 for my services, I'd scaled my pricing all the way to as high as $7,500 per project with the help of a business coach.
Sure, I had to do more work to charge those kind of fees. But it wasn't 30-60x the workload.
Instead, I'd learned how to structure an offer in a way that made it not only tolerable - but desirable - for clients to pay me those kind of fees.
Fast forward another two years and I was able to charge as much as $17,000 for my services (for even less work than the $7,500 project).
See, the reason raising your prices is so powerful is because it allows you to hit your financial goals while working on fewer projects / with fewer clients.
Which is pretty appealing given the #1 thing 99% of agencies and freelancers struggle with is getting clients.
So how can you build a $5,000+ offer?
#1 - Deliver 10x the Value
First, many business coaches say you should aim to deliver anywhere from 3x to 10x the value you deliver relative to your fees.
Meaning, if you want to charge $5,000, your service should add $15,000 to $50,000 in value to your client's business.
If you provide a marketing service, you could interpret this literally (meaning you legitimately help your client drive $15K to $50K in new revenue).
If your service isn't related to marketing, ideally you would be able to show how your service will help the business save the $15K to $50K.
As an example, if you run an AI automation agency, you could explain how your service will prevent the business owner from having to hire another $50K per year employee.
Admittedly, some services - like graphic design - cannot be connected to revenue increases or savings. Mainly because the value of something like graphic design is subjective, and cannot be measured in a tangible way.
But most services, from media buying to outsourcing to chat bots, can be connected to revenue, savings or both.
In addition, not everything is about money.
As we've discussed in previous issues, the most successful clients value their time more than their cash. So if your service delivers the same result as your competitors, but twice as fast, that's a form of value.
Same goes for if your service has a higher success rate / higher likelihood of "working" relative to your competitors.
So don't just think of this in terms of monetary value.
Instead, consider all forms of value, from time to risk reduction (most of which Alex Hormozi discusses in his $100M Offers book).
Once you've figured out what your prospects value, the next step is to position your offer correctly.
#2 - Position for Profits
If you're unfamiliar with the concept, positioning has to do with how your product or service is positioned in your industry.
Which is not a very helpful definition is it?
See, the reason positioning is hard to talk about is because it's abstract.
As an example, if you were to ask how the US is positioned on the map, the only way someone could respond would be to describe what surrounds it.
The Pacific ocean. Canada to the North, Mexico to the South. Etc.
But when it comes to offers, it's exponentially harder to identify where your thing exists in comparison to all of your competitor's things.
And make no mistake about it: If you have 10,000 competitors, you have to figure out your positioning relative to all 10,000 of them.
At the same time, if you're a small fry providing freelance or agency services, you don't need to hire some Fortune 500 consultant to figure this out.
Instead, you need to answer the following questions:
How is my service superior to my most obvious competitor's services?
What can I do / include that my competitors are not?
What can I leave out that my competitors force people to do?
How can I name this in a unique way that implies the outcome my clients want to achieve?
Remember: A thing's position exists relative to the things around it.
So don't dive into these questions until you answer how your biggest / most obvious competitors have positioned their services.
#3 - Include a Guarantee
If providing a guarantee makes you nervous, good.
Think about it:
If you're not confident enough in your service to provide a guarantee, why should a prospect feel confident in paying you to get the job done?
Sure, some services - like media buying and copywriting - involves factors that are out of your control. In which case you need to be super careful about offering performance-based / revenue guarantees.
But financial gains aren't the only type of guarantee worth making.
Instead, you can guarantee:
Turnaround times
Functionality (in the case of a Web App / website / chat bot / etc)
Quality / Satisfaction (in the case of a logo, content writing, etc.)
Response times (most relevant to sales / lead follow up)
Quantity of ___ delivered
Etc
As someone who did a lot of copywriting, I knew clients hated writers who turned in projects late.
So to overcome their fears, I put a Turnaround Time guarantee in my contracts, with a 2.5% project fee refund due to the client for every 24 hour period I missed a deadline.*
*I've probably missed one deadline in my entire life, so I knew this was something I could guarantee without any actual risk to me.
Either way, clients love guarantees. Especially when they're written into a contract and legally binding.
So put some effort into identifying how you can beef up your guarantees.
*Bonus points if what you're "guaranteeing" is something you already do regardless, but is something the prospect could interpret as a risk factor (like what I did with my turnaround time guarantee).
In conclusion, there's nothing mysterious or magical about charging $5,000+ for a service offer..
Sure, to sell a service for that much you need to be speaking with prospects who have a large enough budget that they can afford $5K+.
But assuming you've got that part handled, selling a premium service is no harder than selling something for $500 or $1,000.
You just have to understand how to structure and position it correctly, which you can do by following the three steps above.
💡 Takeaway: To increase the price of your service, make sure you're adding 3x to 10x the value of your fees, use high status positioning to make your offer stand out, and include as many relevant guarantees as possible.
🎁 Resources:
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