So now that we have gathered some examples, some inspiration, and a rough idea of what we want to do, is time to put in the work. The way you structure your offer might be one of the most important things in your business, so put a lot of thought and effort into this. Now that we have all the information we need we will craft our offer in a single sentence. We need this to be simple, easy to understand, clear, and solving problem-focused. Even a 5-year-old should understand your offer. But before saying “oh yes I just know I need to help E-commerce agencies book more calls” we need to put the pieces together. - Channel/Industry - What worked for others - Your industry pains and lingo - The solution they want - Unique mechanism Now, what’s our unique mechanism? Our unique mechanism is the special way we have to do things and deliver results. With my previous agency, our unique mechanism was helping our clients achieve XYZ results through a “commission-only based sales team”. With my current agency, my unique mechanism is helping our clients achieve XYZ results by “using our proprietary lead gen strategy + prequalification process”. Look at these examples:
The 1st one mentions they help clients achieve XYZ through leveraged automation The 2nd one mentions they help clients achieve XYZ using Positive Feedback Loops The 3rd one mentions they help clients achieve XYZ using inbound lead gen through Software, SEO, and Google. As you can see, everyone with a good offer has a unique mechanism. In a super saturated world where everyone looks and sounds the same, you need something to distinguish yourself from the rest. If you can’t come up with a unique mechanism you’re screwed, unless you’re in an untapped market, or unless you have a huge personal brand you can leverage. Now that we also have our unique mechanism we should put everything together. For this, we will use a simple formula: We help [niche] achieve [results/transformation] in [timeframe] without [pain] through [mechanism]. We can see in examples 1 & 2 how these guys used the pain in their formula. The first one knew one of their client's biggest pains was the number of work hours they needed to put towards this solution. The second one knows their client's biggest pain was “how do I get started if I don’t have case studies or testimonials”. Remember also to pay attention to the industry language. People in the tech industry don’t use the same words as in the marketing industry and this rule applies to all niches.
“Hey Camilo that sounds good and I already have my offer statement. But how much should I charge?” Well, we can come up with a pricing structure based on 3 things: 1- Industry average client LTV 2- Social proof 3- ROI 1: First we need to analyze and find out how much revenue our client’s projects generate for their company. Let’s say you’re aiming to work with creative agencies. And their client LTV is 15k because they charge 5k per month and the projects last 3 months. Now you have a number to play with. 2- The more social proof you generate, the more authority you have, and the more trust your clients will have in your service. This means, if they see you as an authority in your market you can charge whatever you want. This is where you can go from charging a 2k setup fee to 10k. This is why is so important to collect case studies fast. 3- Now we should always consider our clients should get a high ROI to find the most value in our service. If we’re helping them generate more revenue, but they’re getting 1.5x ROI they’ll fire you within a month. It’s not 2010 anymore where a 1% Increase month to month was enough to spark interest. Now people care about big numbers (sometimes it gets unrealistic, so you need to manage expectations) so I’d aim to generate at least 3x ROI. Meaning if our client is generating 15k out of every deal we’re helping them close, we should ask for 5k. Let’s say they can close 1 client out of 5 qualified calls. We can charge 3k setup fee + $200usd per meeting booked and they’ll be making 3x ROI. Math explained → 3k + 5 initial calls at $200usd = 4k invested. 15,000 / 4,000 = 3,75xROI. Simple, right? Now, in this formula, we included the 3k setup fee. But if we keep in mind we will only charge per meeting booked after the first month… Then they’re getting like a 15xROI which is insane. That’s where we can play with fees, and after the first month, we can charge $300-$500 per meeting booked to make it fairer for both parties. See? You need to play with LTV, social proof, and ROI. This applies to every kind of agency. You should find a way to explain to your clients the kind of ROI they’ll get from your services, even if you’re a creative agency. Do you want to explain this to a prospect? Take this ROI calculator → ROI Price Justification *Click on “File” → “Make a copy”