How to think about pricing

Thread👇👇
Here's the 1 sentence rule:

If you're not confident, charge based on the work you do.

If you're confident, charge based on the value you generate for your client
This is exactly why most small companies charge a fixed fee per project

While most big agencies charge based on their performance.

Because they are confident about their work.
Everyone says, increase your prices

I say:

Increase your quality so much that your prices are increased themeselves.
Would you buy a $15 Fiverr website?

Of course not.

Similarly, if you start pitching $15000 websites

It'll be again very difficult to sell

But

What factors should determine your pricing?

How do you know if you're charging too much or too little?

Keep reading👇
Use ANCHORING EFFECT

Ever when to an electronic shop

Notice they have the most expensive $15k screens at the front

That's anchoring

See the Mailchimp pricing

They have the most expensive plan first

Of course, you won't buy that

But suddenly

The $15 one looks much cheaper
What would happen if they didn't have a premium plan

Instead, they had the usual:

Enterprise?
Contact us

Then the $15 one would be the most expensive

And most people would choose the $10 one

With such a simple trick, they increased their CLTV by at least 50%
Most people are not confident enough to charge more

If you're like most people
(hint: You are)

Try to increase your initial price by at least 50%
When deciding on your pricing structure

Decide what's the minimum you will EVER charge

But
Your pricing should depend on how rich the prospect is

When you talk to recently funded or enterprise-level companies

Don't pitch them a $2000 retainer

That's like a $15 Fiverr website
What does that mean?

Say that you have a sales call with 2 companies A & B

Company A recently got a $12M Series A funding

They want to start SEO and luckily you get a call from them
Now obviously, you are not going to charge them $2000 a month

You can charge them $5k or $10k
So have a dynamic pricing structure and change according to the prospects

Figure out their financial situation during the discovery call

And then decide your pricing and offer
Figure out how much you are going to make them per month with your service

Now, divide that by 6 and that's your minimum price
If you're a beginner writer, you could try to charge per word or per hour initially

Because at that stage, you don't know anything about the results

As you grow, get more experience, get more results

Transition from
Charging retainers or per word or per hour

To more performance-based type deals
This way

Your & your client's incentives will be more aligned

Resulting in an overall better partnership and more money to be made for both sides.

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More from @DONVESH

30 Jun
How this 19-year-old student grew his audience from 29 subscribers to 4 million+ in less than 3 years LIVE in front of me

Thread 👇
Start with a very small and specific niche and then expand

You see that everywhere

But don't know how to actually apply

Here's a simple and real-life case study that I saw in the first person

Experienced with him in real life
2 years ago...

This guy, let's call him A, was one of the studious nerdy topper kid

But he wanted to start something of his own

The problem was:

He wanted to do Youtube

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Not one of those charming and attractive youtube guys type
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My thoughts about platitude motivation wealth accounts:

1. They have absolutely no future other than selling something related to twitter growth or affiliating for gumroad course

2. No one respects you even if you have 100k followers

3. Followers is not equal to money

Contd👇
4. Twitter is much more about making friends and meeting high value people than it is about doing 9 left every friday

5. Your followers don't care about you.
They just get the quick dopamine and forget about you

Why?
You're no different than 100s of other almost same accounts with some variation of wealth/motivation/hustle

Now what's the solution?

It's okay if you don't have any skills

It's okay if you're not making money outside of Twitter
Read 6 tweets
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How a simple question could make you an extra $100k for each client

Thread:
Let's say you're doing lead gen for them

The average agency has a retention rate of just 3 months

What if you could expand that to 12 months or even multiple years

And then sell them other services and high ticket programs

Let me show you how:
Ask them about their current revenue

Ask them how many clients do they have right now

Ask them about their target revenue for:
1. Next 6 months
2. Next 12 months

Have a look at their systems
Read 13 tweets
22 Jun
You don't start an agency in a day

The "right" way of starting an agency

Thread:
First, the wrong way of starting an agency:

"Oh man, I see all these guys making a shit ton of money with their agency.

Imma start one today"

*Goes to buy a domain and watching how to start an agency youtube videos*
Why is this the wrong way?

To understand that, we need to understand what an agency is.

"A service-based agency is just a fancy way of saying that you have an expanded freelancing business with MORE clients and a BIGGER team"

@DONVESH
Read 7 tweets
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6 rules of writing cold emails that get replies

Thread:
Rule 1: Follow this formula: PITC

Personalise
Introduce
Trust
CTA
Personalise the email right from the beginninng

Subject line
First name
Personalised lines
Random weird but specific things

Just make sure the receiver knows that the email was sent only to them
Read 10 tweets
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Twitter growth in 1 sentence:

Do something in real life that makes you worth following
Honestly hate these platitude accounts

They don't tell you to do something real

To start a real business

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Pretend to be rich

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Next comes a community to keep you accountable for commenting "value" under big ac6
Read 6 tweets

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