How to Price Services for Unlimited Profits

It is Toussaint Gilbert

Today we’re going to talk about how to price your offer to achieve unlimited profit margins (est. 2 min read).

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Deep Dive

Your business is arbitrage

What does that mean?

Arbitrage is when you buy something from one market then go to a completely different market to try and sell it for more money than you bought it for.

Business is arbitrage because we are “buying” customers.

We then sell them on our product/service and make more money than we spent to acquire them.

(if we do it right)

This arbitrage can be defined as:

LTV / CAC

LTV stands for Life Time Value and this is the total amount of money you will earn from an average life cycle of your clients.

CAC stands for Customer Acquisition Cost and this is the total amount it costs you to acquire clients.

This total costs includes:

  • Ad spend

  • Salaries

  • Operational cost (any use of softwares)


In order to acquire clients profitably on the front and and design a front end system that is “Client Financed”

You must understand your numbers:

  1. How much you need to spend on ads

  2. How much it costs to pay your employees every month

  3. How many softwares are you using and how much are they charging you every month

Then charge 2x, 3x that amount as an up front fee.

This will allow you to acquire clients very profitably while the rest of the client relationship is just you collecting more and more cash due to:

  • Retainer Fees

  • Rev Share Fees

  • Back End Cashflow

You may now be wondering…

How tf do I build an offer that let’s me charge a high up front fee?

This is where you build a Leveraged Consultant Offer:

A Leveraged Consultant Offer is where you solve the full gap for your clients and combine coaching and agency elements into your offer.

In it’s simplest form, coaching is just the exchange of information for money.

In it’s simplest form, the agency model is just the exchange of services for money.

Combining both to design a full solution for your clients makes it easier for prospects to say yes, allows you to charge higher ticket, and get better results without having to handle the entire service delivery in a DFY manner which leaves you stressed and burnt out.

This is ultimately the model I personally used to scale to $106k/mo in just 6 months time.

 
 

How I Can Help You

If you own an agency or a B2B business and you want the systems, processes, strategies that you need to scale to $100k/mo and beyond, consider working with me.

The main problems I solve are:

1. I will create you an irresistible offer you can charge $3k-$10k for

2. I will help you create 3 new ways of driving traffic

3. It will help you create 10 ways of capturing and nurturing leads

4. It will help you create 3 ways of converting leads into clients

5. I will help you fire yourself from the business so that it’s completely automated.

Book a call and see if it’s a good fit here

Hope you enjoyed this one,

-Toussaint

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