Thread by @Adam_McLaughlin

How to price 'Websites-As-A-Service':

(A rough guide with many variables)

3 major factors to consider (and 1 clear indicator that it's time to increase your pricing)...

I'm a big proponent of building recurring income in your #websitedesign agency, and one way to do this is to sell websites as a service instead of as a product.

You can dig into the how and why in this thread:

https://twitter.com/Adam_McLaughlin/status/1529809629215182850?s=20&t=B0Ffhbnrg9NKfrZGyIorig

In that thread up there, I talk about building custom websites and building templated websites for a specific industry.

This thread (Specifically Websites as a service) focuses on selling websites for a specific industry - a template you can reproduce and offer as a service.

The guiding principle of pricing is that you can always go up. New clients won't know any difference if their price is higher than the last guy's, and old clients will be happy if they find out their price is less than new clients.

Start with something and build from there.

There are 3 major factors to consider when setting your pricing (and for good measure, we'll follow it up with 1 indicator that it's time to increase your price)

1. What can clients sustain?
2. What results can you generate?
3. What are others in your industry charging?

Let's use a few examples: If you have a real estate agent making 2% per sale, and you can help them generate 2 new clients a month, you might be generating $5000/month for them.

A mechanic that you can bring in 2 new clients per month might only be generating $500/month.

You'll want to find clients in an industry that can reasonably sustain $200-$300/month as a starting point.

You can add on extras like creating blog content, a proprietary service, sending out an email newsletter, etc, but start with knowing your baseline website price.

Someone who cuts hair as a hobby for 10 clients/month is not a great client base to go after.

Golf courses that sell $1000/year memberships are a good client base.

Either find an industry that has solid cash flow and learn about it, or go after an industry that you love.

My recommendation is to start by exploring industries that you love (maybe you're an avid golfer, or your parents ran a restaurant while you were growing up).

Price your services so you're profitable but in line with what others in the industry are charging.

Be sure you're comparing apples to apples.

Maybe someone else is charging $1000/month for websites, but you don't want to get into writing blogs and email newsletters like they do.

Someone else is $50/month, (but they'll probably be out of business soon at that price point).

HOW TO TELL IF IT'S TIME TO INCREASE PRICES:

If you've got a lineup of people waiting to get your service, it's time to increase prices.

Nobody lines up for a bad deal, but my wife will stand in the snow to get into clearance day at the thrift shop.

This isn't always an indicator that your price is lower than the competition.

it's possible that your prices are already higher (because of your reputation - or theirs) but you're looking for the sweet spot where people pause to consider before saying yes to your price.

If they say yes too fast, they're eager to get the value of what you're selling for the price. Prices need to go up.

If you're closing, but the ratio is low, it's time to consider how you're pricing your service in relation to what you're offering.

Prices can always flex up - They're not permanently fixed.

BUT you run the risk of upsetting an existing customer if you have to drop them later.

Find this thread helpful? Would you help someone else in their agency by sharing?

https://twitter.com/Adam_McLaughlin/status/1653065748594532353