Selling Services

Summary

The speaker emphasizes the importance of educating clients about pricing in web development and digital marketing. Clients often focus solely on the price without considering factors like hourly rates, time, and deliverables. The speaker advises the sales team to explain these differences to clients and propose scalable solutions. They stress starting with a smaller budget to build trust, gradually increasing spending as results are delivered. The goal is to align the proposal with the client's comfort level and avoid overwhelming them with a large initial cost.

Takeaways

• 💡 Clients often focus only on the total price, not considering the value of hourly rates or deliverables.
• 🛠️ It’s important to explain the pricing breakdown to clients, showing why one agency might charge more based on thoroughness and time invested.
• 📊 Clients tend to compare prices superficially without diving into the specifics of what they are getting, leading to skewed perceptions of value.
• 🗣️ Sales teams should educate clients to look at the details, such as hourly rates and deliverables, rather than just the total price.
• 🤔 Clients are more comfortable starting with a lower budget, and it's better to suggest fewer channels and scale up as results are seen.
• ⚠️ Jumping into SEO for a new brand is not recommended due to its slow and expensive nature; quicker results can come from other channels like paid social or PPC.
• 💼 Before creating a proposal, it’s crucial to understand the client's budget comfort level to avoid overwhelming them with high numbers.
• 📅 Proposals should show a timeline of work, starting small and gradually increasing the scope as the client sees results.
• 🔄 Scaling back proposals and starting with essential services can help close deals faster, especially when the client's budget is limited.
• 📉 Proposals that exceed a client’s comfort level may result in them going with cheaper alternatives, so tailoring the offer to their budget is essential.

Q & A

Why do clients focus primarily on the price when comparing agencies?

Clients often focus on price because they don't look at the details like hourly rates, time allocated, or deliverables. They may not consider that a higher price could reflect more work or better quality, and instead focus solely on the final figure.

What is the suggested approach for the sales team when presenting a pricing page to clients?

The sales team should explain to clients that instead of focusing on the total price, they should evaluate the hourly rate, the number of hours, and the deliverables provided. This way, clients can understand why some agencies may charge more but offer better outcomes.

How does the agency suggest approaching clients who compare high-cost proposals with lower-cost competitors?

The agency advises starting with a smaller package, focusing on one or two channels first. As the client sees results, more services or channels can be added incrementally, making it easier for the client to commit to a larger investment over time.

Why is starting with a smaller budget and scaling up considered a better approach?

Clients often have a comfort level between $5,000 and $15,000 per month. If presented with a larger budget initially, they may hesitate or avoid committing altogether. By starting with a smaller investment, the agency can build trust and demonstrate value before scaling up.

Why does the speaker advise against SEO for new brands?

SEO is expensive and takes a long time to show results, especially for new brands without any existing SEO efforts. Clients looking for immediate sales are likely to become impatient if they don’t see quick results from SEO.

What is the potential risk of sending high-cost proposals without understanding the client’s budget?

If a proposal exceeds the client's budget, they might not ask to scale it down. Instead, they may choose a cheaper competitor without giving the agency a chance to adjust the scope or pricing.

What should the team do before preparing a proposal for a client?

The team should ask the Business Development (BD) or Client Partner (CP) about the client’s comfort level and budget range. This ensures that the proposal aligns with the client's expectations and avoids overwhelming them with a high price.

How does the agency suggest structuring service offerings to build long-term relationships with clients?

The agency suggests starting with a more modest proposal and a few channels, such as paid social and email marketing, and then adding more services over time as the client becomes comfortable and sees results.

What challenges do clients face with influencer marketing, and how does the agency propose handling it?

Influencer marketing is time-consuming, requiring coordination with influencers and creative production. The agency suggests starting with a smaller scale, focusing on user-generated content (UGC) from content creators rather than full-scale influencer campaigns.

How should the proposal be presented in terms of timeline and budget growth?

The proposal should show a timeline, where the client starts with a smaller investment and gradually adds channels or services over time. This helps build a sense of growth and avoids overwhelming the client with a large upfront cost.