Sales
August 29, 2024

How to justify higher pricing and charge $100k+ per year

Learn to create compelling offers, position your services, and justify high pricing, including a step-by-step sales process.

How to justify higher pricing and charge $100k+ per year

Have you ever wondered how to create an offer for your agency that lets you charge over $100,000/yr? Better yet, what if you could charge your clients $100,000/yr or more for what you already offer and do for them?

In this blog, we will go through the exact deal structure you need to charge $100,000/yr or more, how to justify your price even if you don’t think you are worth $100,000/yr yet, and how to close more deals even if you aren’t great at sales with the single easiest sales hack we've ever found.

But before we can tell you how to structure and close these high-ticket deals, we need to understand what to actually offer them. What is your current offer? Facebook Ads? Google Ads? Cold email?

That’s the problem. That’s not an offer. That’s a service. And without an offer, you don’t have a real business.

This is why you might have a hard time trying to charge more. When you offer a service, you're like a cog in their machine. There are countless other cogs that can do the exact same job, probably for a lower price too. And that’s not what a business wants or needs, believe it or not.

The problem with delivering a service like Facebook Ads is that it creates a misalignment between you and the client. So, the client just sees you as an external contractor. And if you don’t make the business money straight away or if the business isn’t doing well, you are going to be the first person they cut. It’s much easier to cut someone out there than someone in-house.

This is why you need to change your offer to be a growth-based offer. Because it’s what businesses want. You need to align yourself with their goals and tell them that you are there to grow their business and make them more money.

And here’s the great thing, this works in every single niche apart from the not-for-profit sector because the goal of 100% of for-profit businesses is growth. Now look, we're not telling you that you’re not going to be delivering services, but it’s critical you know how this is framed. It’s important for you to know that it’s not WHAT you do, it’s WHY you are doing it. You are there to provide GROWTH. Businesses don’t really care if that comes from a new AI Cold Email strategy or if you’ve been doing Facebook marketing for 7 years.

By offering growth, you align what you do (services) with what they want, which is growth.

If everyone else is a cog, you become the control panel that controls all the cogs or the engine the cogs rely on to keep spinning. Make sense? That’s why it’s all about how you position yourself to stand out from everyone else. By having the confidence to say, "Yeah, I’ll make you more money", you will be able to charge more.

To really stand out, you even want to guarantee that growth. This might sound scary, but it’s really not. You can just add a guarantee like we did: “I’ll double your investment in me or we’ll work for free". There’s no money-back guarantee, so you keep everything they pay you, and it gives them the comfort of knowing they are going to get at least 2x what they pay you. For clarity, you can add some stipulations if you rely on your clients for specific things to make sure it’s a fair deal for both you and the client.

Now you know what to offer, how can you charge clients $100k for your new offer?

Firstly, if you get your pricing structure wrong, it’s like building a house on sand. You might make it to $10k, $30k, even $50k/mo, but at some point, you’re just going to have to restart. So we want to show you the right way to price your offer so that you can scale to $100k/mo and way past that.

Let’s break down what a $100k offer actually looks like. There are 4 key components you must have to make this work. Then, we'll show you how to justify charging this and selling these kinds of deals.

Upfront Fee

Have you ever had a client where you KNOW you can scale, but they just won’t listen? And wouldn’t your life be easier if they just listened to everything you said? That’s why we want to charge an upfront fee because it sets the tone of the agreement.

Monthly Retainer

The second part to this is what I see everyone get wrong: they charge clients $1,000 - $3,000 per month. As you scale, your profits start to erode because to actually scale, you need to bring on more clients, which means more team members. You want to charge a monthly retainer of $5,000-$10,000 per month. This lets you take that money and reinvest it back into the business while maintaining strong profit margins for yourself. You may think this is expensive, but we’ll show you later how to sell these kinds of deals fairly effortlessly.

Long-term Contracts

Right now, you’re probably working with clients on either 30-day or 90-day contracts, right? This makes it extremely difficult to stack retainers because you don’t have time to deliver results. It’s not your fault. The average sales cycle length in business is 84 days. Unless you’re working miracles in that first week, you’re setting yourself up to fail. That’s why the third component to this is long-term contracts. We specifically work on 12-month agreements so you actually have time to deliver the results you know you can.

Revenue Share

Of course, when you charge $5,000-$10,000 per month over a 12-month period, you are going to make a guaranteed $60,000-$120,000 plus the setup fee. But if you thought that was how you make the real money as an agency owner, you’d be mistaken. The final part to this is a revenue share, so there’s literally no limit to how much you can make. You get to collect a revenue share every month on top of what you are already charging.

Selling Your $100k Offer

Okay, so now you know what you should charge for your new offer. You’re probably thinking:

"How the heck am I going to sell this and actually get someone to give me that much?"

This tripped me up for a very long time. My name is Jacob and I'm a bit introverted, I don’t like sales, and to be honest, I sucked at sales. Maybe you can relate to all those things. So if you pay attention, I’m going to give you the 3-step sales process that took me 5 years to learn and has made me millions.

Step 1: Discovery Call

Your job is to ask as many questions as possible to find out everything you can about the person.
  • Where are they at now?
  • What’s their revenue or number of clients?
  • Where do they want to be in 12 months' time? Personally, professionally?
  • What are their goals? Increase cash flow, exit, IPO?
  • What have they already tried to achieve those goals? Did any of it work? What didn’t?
  • What problems are they having? Or think they have?
  • What’s their offer? Who do they service? Price point?
  • Are they trying to break into a new market?
  • Have they got a new product coming out?
  • Anything else you should know?

Book them onto a follow-up call then and there because if you don’t, people will constantly ghost you after that initial call, and you’ll close far fewer deals than you could. If you don’t do this, you are going to struggle to do the next part, which is where all the money is made.

Step 2: Build Custom Plan

This is really the key to everything. It’s how you can justify high prices, sell even if you’re not great at sales, and make just about any business want to work with you.

Let me show you what this would look like and what you need to include: Example Plan

  • Outcomes: Specifically tell them what they will get by implementing everything inside of the growth plan you are about to share. These are just big fat benefits.
  • Unique Mechanism: Consider your mechanism as the “simultaneous explanation of why everything they've tried before has failed and why this time will be different". Nearly everyone attempting to achieve results does this... (the problem). Here’s the problem with that… (reason why that problem is a problem). Consequently… (ultimate consequence). So instead, we do… (your specific methodology). Which enables us to… (benefit) Which ultimately means… (benefit of that benefit)
  • Story: Credibility and trust
  • Step-by-step: Businesses don’t buy based on emotion or by getting them to feel a certain way. They buy based on maths, logic, and evidence with proper due diligence. That’s exactly what we do here with the custom plan. We build a step-by-step plan for how we’re going to help grow their business.

To build this, think about if you just signed your dream client. They are paying you $10,000/mo, you have a revenue share, they are a big name in the industry, and they could refer you to many people.

If you had to guarantee results for that client, what would you do?

Get a pen and paper now and write it out step by step. For example, if you were running ads, maybe you’d:

  • Do market research
  • Create assets for them
  • Create the ads themselves
  • Manage the ads
  • Create the funnel
  • Create the sales letter
  • Create an email sequence

Whatever you do, write this out step by step because that is what you’re going to include here. You are probably doing a bunch of these things already for clients but just not getting paid for it. That’s why we do this - so you get paid fairly for everything you do.

Now put this into your plan. Old way - new way - create a gap. Unique mechanisms.

Show them what you are going to do over the 12-month agreement. Where each part comes in. How does it all fit together, and why is it important to have every single step?

The next part is evidence… show them every shred of evidence you can at each point. Logos, case studies, campaign results, old job experience, 3rd party data. Whatever it is, just use it. Even your own story - use it. If you don’t have any case studies or experience, use that to your advantage too. You can beat even the most talented people by simply doing the work others aren’t willing to do and actually telling the businesses that. It will be you working on their business, not some low-level employee. You’re going to dedicate as much time as it takes to get results. You get my full attention, basically be full-time on this until it works. Just tell them that, and you’d be amazed how easy it can be to close these kinds of deals.

Step 3: Close the Deal

Now you’ve laid all the foundations, it’s time to get to the hardest part when it comes to sales - closing the deal and collecting cash.

Here are the 4 things you need to justify charging over $100,000 per client:

Value Stack

We want to clearly show them what they are getting and build up the value. No client is just going to know how much value you can bring them. This is unknown territory for them. So you want to break it all down line by line.

Options

We want to show them at least two pricing options they can choose from. The first one will be a higher upfront fee, a higher monthly fee but no revenue share. This is used as a psychological price anchor against the pricing option we want them to actually take, which will be… They need to see this first price and think, "Damn, that’s expensive". Then you drop in... a lower upfront fee, a lower fixed fee, and a revenue share. The reason we want a revenue share is that working with big businesses involves a lot of money, so you can make considerably more by having a revenue share in place. It shows you’ve got the confidence to say, "I am so confident in my success that I will put my money where my mouth is." We would say, "Look, we actually only make our money from the revenue share. The fixed fee is just to cover our costs, and our profit is made when you make money".

Guarantee

Do you know what the single greatest objection for any product or service being sold is? Risk. Risk that it doesn’t do what it’s supposed to for them. What happens if you reduce or remove the risk entirely? Drastically increase in conversion rate. 99% of businesses don’t offer guarantees because they know they can’t deliver. If you know you deliver results, why not offer it? If you’re not sure if you can deliver results yet, then yes, you’ll get some clients who take advantage of the guarantee. But not usually.

ROI justification

Here’s how to put the nail in the coffin when it comes to closing these big high-ticket deals. Literally run the numbers in front of them. Show them what happens when you work together. When you do this, you don’t have to think about how much time it takes or how much it costs you to deliver; you can focus on how much money the problem is worth to your clients if you can solve it. Ultimately, since you’re charging based on value created, you can instantly charge 2-4x what you once were. For example, if you are running ads, show them:

  • Cost per lead
  • Cost per call
  • Using their current close rate how many would they close
  • Do that for different scenarios

Here’s how I’d do it on the call:  The Growth Partner Modeling

By following these steps, you can confidently create and sell a $100,000 offer for your agency, ensuring you provide immense value to your clients and achieve significant growth for your business.

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