What's up brand builders, Stephen Houraghan here at BrandMasterAcademy.com and in this video,
you're going to learn about brand consultancy fee structures. So you can leverage an effective
pricing strategy that aligns with your goals, and set your branding business up for success.
Now, if you're new to the channel and you want to build brands that go beyond the logo and the
visuals using strategy, psychology and creative thinking, then you're in the right place,
hit that subscribe button and the notification bell. If you want to fast track your results, make
sure you grab the pro brand strategy blueprint. It's a free download, and the link is in the
description. Now whether you call yourself a brand consultant or a brand strategist, essentially,
you're selling your thinking that is what you're selling on. In order to sell anything
effectively, you need a pricing structure that will appeal to your audience. And that will work
for your business. Now, of course, it's best to approach this early on in your business. If you're
setting up shop, then you should be looking at your fee structure, you should be looking at what
you're going to charge for your brand consultancy services, and how you're going to structure those
charges. But typically, what you'll find is that people will set up shop business owners
freelancers, they'll set up shop without that in place without an effective pricing strategy in
place. And they might get a couple of years into their business before deciding they need to look
at their pricing structure. But either way, whether you're setting up shop for the first time,
or you're having a look at existing pricing structures, then this video will give you six
strategies that you can take into your own business face strategy number one is hourly
billing. Now, although this is a legitimate strategy, it's not a very effective one,
because you have a ceiling of what you can earn, it's certainly not effective for scaling. Now, if
you just want that security, if you just want to be able to build by the hour, because it's easy,
and it's clean, and you have that transparency, then by all means this is a legitimate strategy
that you can use. But if you will have any plans on growing or scaling your business or growing
beyond the ceiling that is put in place by the fact that you can only work so many hours in a day
and you can only charge so much for your errors, then this is not a very effective strategy. So
number one is hourly billing, it is a legitimate strategy effective, not so much fee. Strategy
number two is daily billing. Now daily billing means that you sell your time in blocks. So
essentially, you're still selling your time as with an hourly rate, but now you're selling it in
blocks. So you do have a minimum amount of hours that you will sell. So it is a better strategy
than the hourly strategy. But you still come across the same problems, you still only have
so many hours in the day, and there is still that ceiling in place. So again, very much the same as
hourly billing, yes, there is a benefit to the fact that you are selling a minimum amount of
hours. And in terms of how you can charge it is a lot cleaner than the hourly billing. But again,
you're limited for scale, not very effective v structure. Number three is a retainer. Now,
the way a retainer works is you offer your client a set amount of hours per week or per month.
And for that privilege, they will pay you a set amount of money. Now, it doesn't mean that you
will work every single hour that you have assigned to them, they may not need you for every single
hour. But the benefits of the client is that they have your skills available to them for those hours
whether they need you or not. And that means that they don't have to go out and hire somebody on a
full time or a part time basis. And the benefit to you is that you have that consistency of pay on a
weekly or a monthly basis. So this is mutually beneficial, the client has that extra support.
And you as a supplier, you have that stability and that recurring revenue fee. Strategy number four
is value based projects. Now, value based pricing was made famous by Blair innocent. Christo talks a
lot about value based pricing, he's a big advocate of value based pricing. And essentially, within
this model, you're trying to determine the value of the work that you're doing to your clients. So
for example, the value of the work that you do, the client wants to earn $500,000 revenue. So
from that point, you would determine that you want to earn a percentage of the revenue that
they're going to earn from your work. So let's say you're going to earn 10% of the revenue that
they earned then you would charge $50,000. Now not everybody is comfortable with this approach.
Some clients are not comfortable with it. Some suppliers are not comfortable with it. If you
are able to pull it off, you're able to put in place the processes that you can use to sell this
as a pricing strategy, then it can be very, very lucrative for you. Strategy number five is profit
based projects. Now this fee strategy is solely focused on the profit that the business is going
to make. So this involves working out the costs of the business now there will be fixed costs
which takes into account everything from the rent or the electricity The hardware, the software,
and there are also deliverable costs. So what is it going to cost the business to deliver on
the job, whether it is a brand strategy, whether it is a website or a brand identity design, how
many people are going to be involved in delivering the project, and what is the cost to the business
for delivering that project, and on top of that is your profit. Now, your profit margin might be
10% 15% 20 30%, you need to work out as a business what your profit margin is going to be. And then
from your costs, you simply add your profit margin to the top. Now the benefit to this approach is
that it is very simple, it is very clean, and it gives you a lot of conviction that you are
operating as a business, if you just charge costs, then you are a charity. If you're not making a
profit, then you are a charity, you need to make a profit as a business. And when you determine what,
what profit margin you want to make, you simply add that to the top. So that really does lead
into conviction when it comes to selling your services that you know that as a business,
you're going to be making 20 or 30%. And you're comfortable with that amount. And as I said,
that really helps in the conviction when it comes to selling those services on fee structure. Number
six is ROI pricing. Now ROI pricing is where the consultant will make a percentage of the profits
that the the client or the business makes on the back of their work. Now typically, this is more
effective when there are marketing execution services involved because marketing metrics,
certainly digital marketing metrics, they're much easier to track. And profitability can be
a lot easier to determine based on the work that has been done by the consultant. Now there can be
complexity in setting up a pricing structure like this in terms of legalities in terms of contracts.
And one way that a consultant might set this up is to incentivize the client will reduce rates
for the deliverables of the work in the hope that the brand and the business will go on to make a
healthy profit. And the consultant will be able to share in that profit. So as I said, this is
a lot more complex than some of the other other pricing strategies. But if you can pull it off,
if you can set it up, it can be very lucrative. So as you can see, there is no one way to bill
or to charge for your brand Consultancy Services. And you need to determine a pricing strategy. Is
it going to be hourly? Is it going to be daily? Is it going to be a retainer value base project base?
How are you going to structure your services? And how is that going to align with the goals that you
have with the business that you want to build with how you want to grow and scale. So really think
about what it is that you're trying to build the clients that you're trying to attract the
relationship that you want to have with those clients, and then make a decision about your
own pricing strategy and set yourself up for success. Speaking of growth and scale if you
want to learn six revenue streams as a brand strategist that you can take into your business
to grow your revenue and scale your business then This video will show you how
until next time, Brand like a master and I'll see you in the next video.