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).

Youtube Videos of The Week

• How I got my first three SMMA clients in 2 weeks (As a Beginner)

• 17 Months Into My SMMA Journey & Still Making $0/mo | My SMMA Journey

• Systems I used to automate my $106k/mo SMMA & work 5 hours per week

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”

Client financed means every client you sign covers the cost for the next 2-3 clients.

Pretty cool right?

Well in order to do that…

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.

The main thing is we have something really attractive that makes it easy for us to get clients on the front end

But the model is very sticky which means clients want to stay with us for a long time on the back end.

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

And it’s the same model my clients are currently using to print cash...

I realized the agency model is rather simple

but only if you choose the path of least resistance.

Hope you enjoyed this one,

-Toussaint