How do you get paid your full worth?
This is a timeless question in the world of consulting. In fact, this is the question I’ve been asked more than any other.
And after working with thousands of business owners across dozens of industries and geographies, here’s what I now know to be true:
Getting paid your full worth starts with your mindset.
We’ve been conditioned by our past full-time jobs to…
Negotiate our salaries.
Be grateful for the work.
Wait for the performance review.
Ask for a raise.
Hope for the best.
Don’t rock the boat.
But none of this applies to being a business owner, and especially being a consultant.
As business owners, we have to shift from asking for money to stating our price. And it’s a lot harder than it sounds.
What’s most important to know is that pricing signals value.
That’s why charging too little can actually hurt your chances of signing clients because they may think, either consciously or subconsciously, “Well, this person must not be that great if their prices are that low.”
In fact, early in her speaking career, Mel Robbins was asked to quote a fee for a speaking engagement, but felt unsure of her value and didn’t want to “price herself out.” So she quoted a relatively low fee.
She didn’t get the job.
At first, she assumed that maybe they went with someone better, or maybe they didn’t have the budget.
But later, she found out the real reason: The client thought her fee was too low, which made them question her credibility.
That was a pivotal, valuable lesson for Mel, who went on to become a best-selling author with 6-figure speaking fees.
With that story as your guide, here are three takeaways for this week’s Wednesday Wisdom:
Takeaway #1: Price is a signal of value. Remember that.
Takeaway #2: Charging too little can actually hurt your chances of landing the client.
Takeaway #3: Confidence isn’t just an internal mindset. It also shows up in how you position and price your work.
So what do you do if you get pushback on your prices? (Most successful consultants experience this, by the way.)
Pushback simply means one of three things:
1. You haven’t yet earned the client’s confidence or trust that you can deliver the tangible results they’re looking for.
2. The client had no idea what these services would cost and is genuinely surprised.
3. The client isn’t connecting your price to their desired outcome. There’s a mismatch in the value they place on the outcome and the price you’re quoting.
And because I want you to have the tools to price high and grow your business, here are some Upside-tested responses you can save for just such a situation:
“If you’re truly tied to a budget of $10,000, you may need to bring on someone more entry-level. If that’s the case, I can put it out to my network of recent grads and freelancers to see who’s interested and make a few introductions for you.”
What this does: It sends the message that you know you’re worth a lot more than their budget. But you aren’t closing the door either. If they truly can’t find the budget and are willing to go with a junior freelancer or new grad, you’ll be a resource for them + keep the door open for future work.
“Tell me more about why you aren’t able to budget $50,000 for a project you’re projecting to deliver a $1M return in the next 12 months?”
What this does: It puts the budget into perspective. $50k feels like a lot. But when the return is $1 million, 5% of the total ROI suddenly seems very reasonable.
Curious how The Upside could help you grow your business? Save the date for our next Open House where you’ll get an insider tour and have your questions answered live. RSVP early to save your spot!
