how I finally CRACKED THE CODE with smma (20k/m in 60 days)

Summary

In this video, the speaker shares how they turned a struggling agency into a $20K/month business in just 60 days by implementing two key changes. First, they lowered their pricing, offering services under $1,000 to attract more clients, making sales easier and quicker. Second, they switched from monthly retainers to one-time products, which clients found more appealing and less burdensome. These strategies allowed the speaker to close more deals and streamline client management, leading to rapid growth and success. The speaker encourages other agency owners to test these approaches for better client retention and higher sales conversion.

Takeaways

• 😀 Lowering prices to below $1,000 can help secure more clients, even if it feels counterintuitive.
• 😀 Charging less can increase perceived value and lead to more sales, especially when clients are hesitant about long-term commitments.
• 😀 Monthly retainers often lead to client churn; offering lower, one-time payments is an easier sell for many clients.
• 😀 One-time product offers, rather than ongoing retainer models, can simplify fulfillment and lead to fewer headaches for both the business owner and clients.
• 😀 Offering a compelling deal like a one-time setup fee with support and guarantees can make clients more likely to say yes.
• 😀 Clients are more willing to commit to a one-time deal than to a recurring monthly fee, especially for services like B2B lead generation.
• 😀 Selling products with a one-time payment model (e.g., reselling software) can generate higher profits with minimal upfront cost.
• 😀 Building influence and perceived value can help you charge more for consulting, as demonstrated by examples like Alex Hormozi and Dan Kennedy.
• 😀 In B2B sales, offering tools or resources at a discounted, one-time rate can lead to large profits with lower risk of client cancellation.
• 😀 The trade-off between one-time sales and monthly retainer models can be worth it, as long as you’re acquiring more clients with each sale.
• 😀 It's important to focus on simplifying the sales process and offering value that aligns with client expectations, even if it means charging less upfront.

Q & A

What was the biggest challenge faced in the first year of the agency?

The biggest challenge in the first year was losing clients frequently, dealing with refund requests, and the constant cycle of trying to keep clients on long-term retainers. This instability made it hard to build a sustainable business.

What changes were made to turn the business around and start earning $20K per month?

The two key changes were lowering the service pricing to under $1,000 and switching from monthly retainer models to selling one-time products. These adjustments made it easier to acquire clients and provided a simpler fulfillment process.

Why did lowering the price to under $1,000 work better for client acquisition?

Lowering the price made the services more accessible and appealing to clients who were hesitant about committing large amounts upfront. It created a lower barrier to entry, which allowed for easier client conversion.

How did the 'one-time product' model differ from traditional monthly retainers?

The one-time product model involved selling a service or product for a single payment instead of a monthly subscription. This model was more appealing because clients didn’t feel locked into long-term commitments, and it was easier for them to say 'yes.'

What inspired the move to offer one-time products, and how was it implemented?

The inspiration came from discovering software on platforms like AppSumo, where tools could be purchased for a one-time fee instead of a monthly subscription. The approach was implemented by reselling these tools to clients, along with providing additional services, for a one-time fee.

What are the potential downsides of selling one-time products instead of monthly retainer models?

The main downside is that the lifetime value of a client can be lower compared to monthly retainers. However, the trade-off is that one-time products make it easier to close sales, and the fulfillment process is less demanding.

Why is it difficult to sell high-priced monthly retainers to small businesses?

Small businesses are often cautious about committing to high monthly retainer fees because they may not have the budget or confidence that the services will deliver significant results. High prices create a barrier that makes it harder for them to say 'yes' to the offer.

What role does perceived value play in pricing and client acquisition?

Perceived value is crucial in pricing, as clients are more likely to pay higher prices if they believe the service offers substantial value. This can be influenced by factors such as reputation, influence, or the results that can be achieved from the service.

How does the fulfillment process differ between monthly retainer clients and one-time product clients?

With monthly retainer clients, there is ongoing pressure to meet monthly expectations and maintain regular communication. In contrast, with one-time product clients, the fulfillment process is typically shorter, and support is only needed occasionally, making it less demanding.

What advice does the speaker give for selling at a lower price while maintaining value?

The speaker suggests offering lower prices under $1,000 to make the service more accessible. Additionally, offering a limited-time discount, such as lowering a $2,000 price to $800 for a quick decision, can further increase conversions while maintaining perceived value.