The Marketing Mix | official blog of the Marketing Mentor community

Guest Post: Avoiding the free advice trap

Colleen's note: I met guest blogger Donna Gordon via the Ask Liz Ryan group  on Yahoo. She is a shining example of how to use social media well—i.e. be brilliant and helpful, and people will come to you. She's also a smart cookie when it comes to business in general. As with her previous guest post on networking etiquette, Donna's tips on good consulting practices were so awesome, I asked if she'd elaborate for our readers on the blog. Here are the (fantastic! awesome! thorough!) results.

Okay all of you self employed and small business owners, you’ve got that hot prospect at the table, and you’d love to get the project.  Then comes the question, “What do you charge?”  Seems like a simple question, but one fraught with landmines.  At what point does a meeting to pick your brain for ideas turn into a paying assignment?  Are you seeing lots of tire-kickers these days?  Do initial meetings turn into non-paid consulting sessions?  If you’ve been in business for any length of time, you have wrestled with this problem.  

My ‘aha’ moment came after tracking every 15 minute block of ‘work time’ for almost 2 months.  I was astounded at how much non billable time was spent on prospecting, meetings, and other things that did not produce a check.  It was then that I had to re-assess my service offerings and the kind of clients I was pursuing.  Here is my list of best practices:

Should you be discounting your fees right now?

This is a question that came up at my "How to Thrive in a Tricky Economy" presentation, which I gave last night for a NJ chapter of the National Association of Women Business Owners.

Because clients and prospects across the board are nervous about spending money right now, the real question is this: how can you offer the services they need for a fee they can pay and still cover your own expenses?

I am not an advocate of discounts; I think it devalues your work in the long term.

I do, however, recommend adding value, throwing in some kind of incentive, to those prospects who seem to be on the fence about working with you.

By the way, I'll be addressing this issue on next week's webinar, How to Talk To Clients About Money, when I interview Jeff Barlow and Julia Reich about how they handle potentially difficult conversations with both prospects and clients. Details here: http://www.howdesign.com/creativefreelancer/

What kind of incentives can you offer? What have you seen others offering that adds value? And how does this work for you?

Lessons in price talk

Today's guest post is from Stacey Morris, of Focus Copywriter, who specializes in writing web content. She learned a good lesson about how to answer pricing questions that I thought everyone would be able to benefit from.

For anyone who struggles with cold calling…yet another lesson learned last week. In fact, three lessons.

It started well. A web designer responded to my inquiry email about the copywriting for his clients’ sites by asking for my prices, which is pretty common.

And what does Ilise tell us to do when someone emails a question about price?

She says “CALL THEM.” Cockily drowning out my coach’s voice with my own assuredness (after all, this was going well), I wrote back with an estimate for the job and attached a rate sheet.

Two hours later I got a response from this web designer. I can’t write it down verbatim because I don’t want to use profanity, but this guy was pissed! Apparently, my ridiculously low estimate was way above what he had in mind.

Now, I know it’s never personal with these things. But “Troy” didn’t seem to value my profession (copywriting) nearly as much as he valued his (web design). So I emailed back politely explaining that “copywriters help bring qualified motivated visitors to the beautiful sites a designer builds. Copywriters make sure that the business owner is getting the right message across to the right people. And good content leads to happy clients, which leads to more referrals and more work down the line for the designer.”

Go ahead, get emotional

Over the last year I’ve been teaching a communication and conflict resolution course for a corporate client of mine. Most of the material in this program comes from the New York Times best-seller, Crucial Conversations. One of the tools that the book teaches is called “Master My Stories”. The idea behind this tool is that how we feel lies in the stories we tell ourselves.  And these stories generate emotions that often lead to actions. We create our stories.

When you think about marketing your business or product,  your goal is to generate action from your clients and prospects. And an effective way to generate action is to tell a compelling story, one that hits your customer’s emotions.  Take a look at your marketing materials, your website, your newsletters, your printed collateral and ask yourself: “What emotions am I hitting?”.  Which feeling will your customer generate when they see your stuff?

If you look at the majority of service companies (especially in the creative industry), the common story is all about who they are and what they do best.  If I’m the customer, why would I believe them? What would compel me to trust that they really know what MY problem is? What my needs are? No feelings are generated and I will pass over them without a second thought.

As you are creating marketing materials to promote your business ask yourself the following questions:

   1. What are your clients' hot buttons? What’s not working for them?
   2. What is the outcome your client is asking for (not the specific thing they need from you)?
   3. Is your story creating an emotional reaction with your client?

So think about the stories you can create with your marketing. Stories that will generate a feeling with your client. A feeling that will inspire them to pick up the phone and call you. Hit their emotions and they will respond.

Woo Woo Negotiations

Earlier this week a friend of mine who recently became a certified reflexologist and energy worker came over to my house to do some work on me. I was her first paying client. (Yes, I’m into that woo woo stuff.  Clearing the chakras is essential to a busy guy like me.)

She came over at 4:00 pm and worked on me for 2 hours. The session was great and as she was packing up her massage table it was time for me to pay her.  Which meant we needed to have the money conversation. What was this luxury going to cost me? We didn’t discuss money up front AND we were good friends. A dangerous combination.

I asked her “So, what do I owe you?” and instead of getting a clear answer she started to mumble. After about a minute of her sharing with me her thought process on how much she should charge me she blurred it out with fear: “$60.00!" What I responded with was, “OK." What was going through my mind was “Wow, that’s cheap!”.

As I was reaching out to get my checkbook my conscience just didn’t sit well with me. The work was worth more than $60. I knew it. She probably knew it too but didn’t believe it. So I wrote her a check for $80 and told her that $60 just sounded a little too low. Would she accept $80? She smiled and told me that was the original number she had in mind and thanked me for my generosity.

So you may ask yourself “How does this relate to marketing?”. My friend was not confident in her pricing and value of service she provided. She doubted herself and therefore priced the work on the low side. I on the other hand had a great experience and thought the work was worth much more. Are your prices aligned with the value of your work? In our industry I see many creative solopreneurs and service firms under price their work because they don’t project a high level of confidence in their work. That projection is marketing. If you believe you are worth a lot, chances are your clients will too.

Next time you have to give a price for a project remember two things:

1. Have the money conversation up front. Don’t wait to talk money until it gets uncomfortable. Especially when working with a close friend.
2. Believe what you are creating has great value for your clients. Your work will probably help their business grow and put money in their pocket. That’s worth more than you think and you should get paid accordingly.

And of course if you have to negotiate a price with a reflexologist, it’s not a bad idea to have your chakras cleared first...

Everything is negotiable

The other day I was heading to the airport to catch a flight. Although normally I take a taxi, I decided to save some money and park my car at the airport.  I usually park at one of the airport lots for about $12.00 per day but after getting stuck in traffic and worrying about missing my flight I decided to park in one of the airport-adjacent hotels that offers valet parking.

I pulled into the lot of the hotel I would normally park at and a uniformed attendant greeted me with a smile. I asked him what was the valet parking fee and he said $28.00 per day. I grinned and knew my money savings strategy was shot.

I looked at him and said “wow, that’s kind of high isn’t it?”. He replied “hold on, I’ll be right back” and quickly disappeared behind the valet booth in search of something.

A few minutes later he returned and handed me a discount coupon that brought the parking down to $12.00 per day. “We know times are tough so hopefully this will help”.  Without even asking for a discount, I got one.

It made me think that everything these days is negotiable. Even valet parking. Our struggling economy is creating new rules for selling. And I’m liking it. You see, I was born and raised in Israel, part of the Middle East, where negotiating is part of everyday life there. In fact, some vendors would get insulted if you don’t negotiate. It’s part of how we buy and sell.

So how does that relate to your business? You can expect your clients to negotiate with you now more than ever. Be prepared for that. And be open to the experience. Go into the selling process with “negotiation in mind”. Even if your fees have been the same for years, your clients may now expect some kind of a deal or discount because of our “struggling economy”.  So rather than lowering your fees (which you don’t want to do because that send a message that you are desperate) you can offer your clients incentives, something extra if they buy from you.  Throw in something extra.  Help your clients feel like they are getting a good deal.

Guest Post: Ann Strong talks about the 4 C’s of success

Back in the olden days, the only way to get new clients involved cold calling, prospecting, setting appointments, making presentations and -- when we hit the jackpot -- closing sales. Outbound marketing. Better known as pounding the pavement.

Today, we have the additional extremely attractive and quite effective option of bringing in new clients through inbound marketing as well. Also known as people asking us to become our clients! Ah, the life of inbound . . .

So, how do we create this beautiful flow of people asking us to become our clients?

Connection
Are enough people finding you or are you meeting enough people?

Community
Once you initially connect, are they attracted into your community?

Consult
Once they've engaged in your community, do they ask for or would they love a consult with you?

Client
As a result of the consult, do they hire you?

Through targeted on-and off-line networking, social media and blogging, you invite potential clients to your website.  Then you entice them with your wit, insights, fresh ideas or whatever strengths you care to share.

Once they arrive at your website, make them a free, no-strings offer they can't refuse. Give them something about which they'd like the inside scoop: results of a survey, a special report, a valuable resource in exchange for their name and email address (maybe also their phone number) so that you can regularly send them something of value to them -- keeping your name and ideas top of mind.

From these two strategic actions alone, some folks will call or email you, asking to hire you!

If you'd like even more business, periodically send an invitation to all those who have signed onto your list. Invite them to have a strategy consultation with you.  Ideally structure this consult to offer value and show them how much more value they'll receive when they hire you.  When you confirm the consult, let them know you have room for one or two new clients and if they are a good fit, you may talk about that, too.

Then, during the consult, determine if you would like them as a client. If so, after the consult, talk to them about next steps, which naturally include working with you!

What could be easier?

Retired logo designer, Ann Strong, now business coach, founder and leader of Thriving Coaches and a good friend of Marketing Mentor.

Pricing, and what it has to do with marketing

Ilise and I have been prepping our upcoming Freelancers Union webinar on pricing for graphic designers, that great organization out of New York that provides all kinds of resources for all kinds of freelance types.

While I confess to having been a bit befuddled when Ilise first asked me to co-present with her—after all, I'm more likely to give away the farm than give adequate thought to pricing—the time I've spent developing ideas for the presentation has really shown me how intimately connected marketing and pricing are, and how you can really leverage the former to do much of the heavy lifting with the latter. Great news for people like...me!

If you're a graphic designer who struggles with pricing, check it out. There will be some Q&A at the end, plus Jennifer at Freelancers Union said she'll set up a forum thread in advance for people who want to discuss concepts and share ideas about the seminar.

Pricing Strategies for Graphic Designers Webinar

Date: Tuesday, January 27, 2009
Time: 7:00 PM to 8:30 PM (EST)
Location: Your computer and phone.
Cost: $30 for Freelancers Union members; $40 for non-members

Register here.

NOTE: Membership to Freelancers Union is f-r-e-e, people, offers some sweet bennies (esp. for folks living in the NY-NJ-CT area) and, as they say, sends a message to the Powers That Be that this is a new world and freelancing is a big part of that.

Michael Katz, enewsletter and marketing genius

This past snowy Sunday morning, I read the latest email newsletter from Michael Katz, who writes the Email Newsletter on Email Newsletters.

Somehow, every week, he manages to tell an interesting story and weave it into a pithy metaphor about marketing. This week's, about warm versus cold prospecting, is brilliant -- and brilliantly written.

Plus he records it every week for those who prefer to listen. I highly recommend that you ingest it here in whatever format you prefer.

2009 Can Make You Stronger

As we start 2009, I am thinking about the challenges ahead.

I've been hearing lately from many creative professionals who relied, during 2008 and before that, on word of mouth and a couple good clients. Now, not so suddenly, the pipeline is empty. So they're starting to put a business development foundation (i.e. a Marketing Machine) in place.

It's not too late, that's for sure. And if you already have one in place, you're ahead of the game. Early 2009 is going to be an important time to rev it up.

If you need business now, here's what to do: network your butt off and pick up the phone.

These two tools are the most proactive ones available and they will bring you into direct contact with people who may need your services.

When deciding who to call, start with everyone you know. The relationships you have already established will lead you more quickly to available work because you won't need to waste time introducing yourself and building trust from scratch.

I am convinced that this year has the potential to make a lot of us much stronger.

(And if you want help, check out our new 2009 Grow Your Business Marketing Plan + Calendar and online and in person Marketing Mentor Groups to keep you accountable. They get started the week of January 19. Details here.)