“Giving away the farm can kill your sales…”
When you’re in the expert business, you’re in the business of selling transformation.
Whether that’s a B2B consultant selling an increase in employee satisfaction, or a fitness coach selling a more chiseled body, most every expert on the planet is selling the same thing: Results.
Unfortunately, the path to helping your clients achieve transformation isn’t always so simple.
Should you offer group coaching, 1-on-1, or a hybrid of both? Live or recorded training? Open-ended once/week calls or multiple calls throughout the week with various themes?
The Pricing Fallacy
To answer these questions, most experts look at how much they’ll be charging for their programs, then work backward.
“Well, if they want 1-on-1 time, that’s going to cost more. And I sure do have a lot of training materials recorded, but if I give them everything up-front, they won’t have any reasons to stick around.”
And so on until they figure out what level of access and information is appropriate for the price they want to charge. Which isn’t necessarily bad.
We all know there are only so many hours in the day. And in most cases, overwhelming new clients with too much information can be counter-productive.
The Only Question That Matters
The problem is, not a single one of these takes into account the one question that really matters:
“What must I provide to ensure my clients achieve a result they’re satisfied with as fast as humanly possible? More important, what can I leave out while making sure they have exactly what they need to succeed?”
When looked at through this lens, everything changes. The question of which content you should and should not include becomes clearer. As does the issue of how much ‘access’ to you should be included.
Results > Volume
In particular, this mindframe takes our focus off of the quantity of “stuff” that’s provided (calls, training materials, etc.) and puts it on the one thing that matters: getting clients results.
With that said, cutting the unnecessary fluff out of your program won’t make it easier for your prospects to say “Yes.” In fact, unless they’ve had a sales call with you before, they won’t even know the difference.
No, to make it easier for your prospects to sign on the dotted line, you need to understand their expectations.
Promise + Timeframe + Price = Expectations
Let’s play a little game. To play, look at the options below and make a mental note of your immediate, gut-level reaction to each offer:
- I’ll help you add $25,000 in new revenue over the next 12 months. Investment: $5,000.
- I’ll help you add $25,000 in new revenue over the next 30 days. Investment: $5,000.
- I’ll help you add $25,000 in new revenue by tomorrow. Investment: $5,000.
Which Did You Choose?
If you’re like most coaches and trainers, offer #1 just isn’t exciting. The appeal of adding an extra $2,000 per month in revenue isn’t worth waiting for 12 months. And since it’s probably something you can do on your own, the idea of paying $5,000 to do so isn’t appealing either.
On the flip side, option #3 probably sounds a bit spammy. The idea a stranger will come into your business and help you make $25,000 by tomorrow sounds hypey. Not to say it’s impossible, but it raises red flags.
Option #2, however, sounds reasonable. Most experts who already have an established business wouldn’t mind making an extra $25k in the next 30 days. And the idea of paying $5k to achieve it – a 500% ROI – is fair.
In Coaching, Less = More
Now, you can adjust these numbers up and down until the cows come home.
But what doesn’t change, is how your prospects view your offer in terms of the promise being made, the timeframe required to achieve that promise, and the financial investment involved in doing so.
Which means, assuming they’re on board with these three things, what you include in your program to help them get there is completely irrelevant.
In fact, by giving away the farm, we make it harder for our prospects to say “Yes.” Why?
Give Away the Farm?
Assuming you’re not a sociopath, odds are you genuinely want your clients to get results. Because of this, our default thinking is that we need to pack everything we possibly can into our programs.
Calls, calls, and more calls. Trainings left and right. The list goes on.
And the intention here is admirable. In particular, we fear that if we leave something out, our clients will have a lower likelihood of achieving success.
So we give away the farm and throw in the kitchen sink to boot. The problem is, in doing this, we almost always feel the need to charge more.
Volume Based Pricing
“Well, if they’re getting all this stuff, and I’m paying my coaches to do all these calls, I better be getting compensated here.”
The problem is, our clients don’t necessarily “need” all that stuff. In reality, humans want the path of least resistance. No one buys a big-ticket coaching program because of how many videos or calls are included.
Get Them to Say “Yes”
No, what people want are RESULTS.
More important, they want a program that offers a realistic promise of results, in a reasonable timeframe, for a fair price. Which means, to make it easier for our prospects to say “Yes,” we need to put our focus on two things.
First, we must get over our desire to give away the farm (which almost always comes from the need to justify charging hefty fees). More important, by doing this, we tap into people’s desire for the path of least resistance.
Offers > Everything
Second, we adjust our offer’s promise and timeframe so that the financial investment required to achieve those results is a “No Brainer.”
Because once you get both of these factors working in your favor, it becomes dramatically easier for your prospects to say “Yes.”