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Pricing & 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:
How much you need to spend on ads
How much it costs to pay your employees every month
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:
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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’re ready to actually make this “agency thing” actually work…
Please allow me to do the following:
1. Let me productize your offer and help you build a full solution for your market
2. Turn it into something tangible that we can build and outline once and repeat for every single customer.
3. For a high ticket price ($5k-$15k+).
4. We’ll build out your full acquisition system so you can consistently hit the KPIs you need to sign clients effortlessly.
5. We’ll build your backend systems, infrastructure, and operations so you can wake up to stripe notifications before breakfast.
6. I only get paid when you make money (Allow me to become your partner).
If this sounds interesting -> Find a slot to speak with me here.
The Process:
I'm currently doing walkthrough & implementation calls where i’ll design your 120 day business roadmap and show you how to implement the system that personally scaled me to $106k/mo
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- If it makes sense for you and you want to partner together, let’s get started by building out the foundational infrastructure of your company.
Hope you enjoyed this one,
-Toussaint
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