Maybe you've been wondering, how do I price my program? I've got heaps of value
but I don't know how to get out to the world, well you are in the perfect place.
My name is Marianne DeNovellis, this is the Six Figure Mastermind, make sure you
check in this video because we're going to go level by level by level on how to
price out exactly your programs.
Hey, Marianne DeNovellis here with how to price your products and your programs.
Now this is a really interesting topic to discuss because there's such a range
of possibilities and you're going to grow from one program to the next
program to the next program, you're constantly learning,
you're constantly growing and the value of your products and programs are
constantly growing as well. So let's get started. First things first, you need to
be able to create a way for everyone to play. Now we talked on one of our other
videos about finding your target market and how important it is to be able to
know exactly who your market's for. It's not for everyone, it's for a select group
of people and so when I say you need to create a way for everyone to play with
you, it means you need to have a system for getting one person to the next level
and to the next level and to the next level. The first level is the freemium
level. In the freemium level, it's just like what it sounds, it's the free level
where people get to come experience you possibly for the first time, possibly for
repeat times, it's a way for you to get in front of as many people as possible.
So your freemium level will often look like a Facebook post, a video, a YouTube
channel, something that is no cost to the person investing in you to try you on
for the first time. You got to try it before you buy it.
So you've got to figure out a way to get in front of people. Let's get some
examples, some examples of a freemium model are a blog. A blog is a free way
for someone to find out about you and what you have to offer, it's a great way
for them to get a peek into your world and how you show up in any given
circumstance. Another great freemium model is a
Facebook profile and you can use your Facebook profile as an independent
profile or you can couple it together with a Facebook fan page, this is a great
way for you to add value upon value to the world and what you're really doing
is creating cosmic debt. When I say cosmic debt, here's what I mean.. You're
putting so much value out into the world through your posts and through your
media that you going to get value in return because
value follows value. Another freemium model is to create a video series, you
can do a vlog or a YouTube channel. If this is free for the person watching you
because they want to be able to see your face, you want to become a recognized
figurehead in your industry so get in front of as many people as possible in
your freemium model by delivering value and I'm going to invite you to do something
that's not very popular in the industry, I'm going to invite you to hold nothing
back, give all you've got. I have watched master mentors, public
speakers, trainers, facilitators, they will give all of the value of their program
that they possibly can in the time that they have onstage around the computer,
they will deliver all of their secrets, they'll teach all of their lessons and
they give it away at a free level for the audience to take advantage of.
Now the reason that people don't do that is probably like you'd expect, well, Marianne,
if I give it all away at the free level, what are people going to invest in when
they want to work with me at a higher level? There's this special magic thing
that happens when you give away all your value, you're constantly in flow, that
means that when you're giving, you're also receiving. When you give away
something for free, you receive these free downloads so that you get more and
better information built upon what you're already teaching. The more of you
that people can have, the more time that people can spend with you, the more
likely they are to buy. The next level up from freemium is the to figure model and
when I say two figures, I mean two figures, anything under $99 and some
examples of a two figure model could be your book or a CD that you've recorded.
Now I'm not an author, Marianne, how do I do a book? I haven't recorded a CD,
I don't have a sound booth, I don't have a studio. Wrong. You've got one, you know
what you have? You've got your car and you've got your phone. Use your phone in
your car to record a very cool recording, teach a topic, teach a lesson,
create a two minute recording, create a half-hour recording, create a 50-minute
recording on a specific topic that you're an expert in and feel free to
claim that expertise. If you've lived through something or you've experienced
something and you become a master of it, claim your expertise in that area. When
you have the freemium model, you can get in front of as many people as possible
and multiply your time. When you multiply your time, that means if I have five
thousand friends on Facebook and I make a 1-minute video, on all of my friends
watch it, that's five thousand minutes that I'm online that only took me one
minute to create, that's the freemium model. The two figure model is very much
the same thing except you're charging now for your product, you've got a book
that you can give to someone, it's a tangible item. Maybe they have a monthly
subscription with you, maybe you give a newsletter out once a week to everyone
who subscribes to your newsletter, a tangible model is a two figure model
where people can play with you on that level. The next level up is the three
figure model, this is anything that's less than $9.99, anything that's more
than two figures and less than a thousand. On this three figure model,
again, you're going to have something they can hand to a person. Now when
people graduate from your freemium model and they go to your two figure model,
you're not going to have everyone from this level come play at this level. The
same is true for your three figure model, everyone that played at this level is
not going to come up and play at this level but some will and they want to
know how to play with you at a higher level, maybe it would look like a group
teaching opportunity, maybe it's a seminar ticket that you sell for a
specific seminar that either you're attending or that you're supporting.
A three figure model says there's a higher level of commitment and we're going to
spend more and more time together. I hope you're noticing the pattern here, the
more free it is to the client, the less time they get one-on-one with you
because time is your most valuable resource, time isn't something you can
get back, you can get money back, you can always create more wealth, you can always
create more of your car, you can always create more of your house, that's
something that's rebuildable but time is a resource that you can't get back and
that is why it is my most valuable resource and the more time you spend
with me, the more that you're going to invest. So let's move up from the three
figure model to the four figure model and again, everytime we move up, it's
fewer and fewer people which means it's a higher dollar amount for you. When
you're pricing your four figure model, this is where
you're going to get into some one-on-one work. When people get to spend some
one-on-one time with you in the same room, sharing your thoughts, your ideas
and your time. Now again, this is for a lot of services that we use so when
you're a mentor in the mentoring arena and your business is service based
rather than product base, it works the same way. When your service gives a lot
of freemium version, it's a very little expense to you and free to them and as
you get closer and closer and closer to those higher level items, you're going to
invest more of your time and more of your energy and the same thing with a
product, the more problems your product can solve, the higher you can price it
and you can follow that same pattern as high a dollar amount as you want it to
go. Now I want to talk about specific pricing from it, let's get really real
here for a minute. Let's say that you have a business that has a product for a
customer can invest $5,000 to work one-on-one with you once a week for
three months and that's a one-on-one once a week commitment so that's about
4.3 hours a month if you're doing once a week for an hour long, that's a $5,000
commitment. This is beyond per session work so if
you're do working per session, you're going to trade that in for working per
program. When you're pricing per program, there's a really important part of your
integrity that's going to come into play here, you cannot charge more than you
have been willing to pay for a program or more than you actually have paid for
a program. So if you're wanting to bring in a $5,000 client but you have not
invested at least 5,000 and doing the work that you're selling, you are out of
integrity, you can't sell that product or service for 5,000 unless you have paid
5,000 for something along those lines for a product or service that's similar.
So we're getting down to nuts and bolts here, you need to make sure that your
product and service pricing is within not only what people are willing to pay
competitively-priced but also, it needs to be an integrity with what you're
doing as a mentor. If you're asking someone to invest in you, you need to
have invested in yourself first. Now how to price your product or program
comes a lot down to market trends, it's a really good idea to do some shopping
around, see others that have similar products to what you offer, investigate
others that have similar programs to you especially in your area, knowing your
demographic is a really key part of this, knowing what people have been paying and
are willing to pay in your area is a very key part of this. Now I want to
start with the very very basics of this because there's a key fundamental
principle that if you miss, you won't make any sales whatsoever. When you start
out as a mentor, when you start out as a service provider, when you start out as a
problem solver and a solutions provider and you're providing products or
services for people, you're going to find that there's a entry level where you get
to offer things for free, maybe this could be samples, maybe this could be
your time, maybe on your freemium model, you're going to have pro bono clients and
we say pro bono clients, these are clients that are not paying you the full
price of your program but that are investing in you with their time, you're
also getting a return on the investment because now you're collecting
testimonials for your product or service. When I started listing products on
Amazon, I listed them at cost because I knew I needed reviews, when I started
practicing as a mentor, I would take pro bono clients under my wing as much as I
could so that I could gain the experience as a mentor and learn what it
meant to be a mentor and when the time comes, you're going to find that you outgrow
the pro bono area. So taking example the products that I saw on Amazon. I saw a
variety of products on Amazon and when I outgrow the freemium model, I knew it
because I was starting to feel like, oh I really need to start charging money for
this because this is coming increasingly valuable for me, it's taking my time and
fulfillment, it's taking my time here and I'm having too many free clients.
Now when you get to too many free clients then you start to move into the to
figure phase into the 3 figure phase in the 4 figure phase and the 5 figure
phase and when you move from one phase to a next, what you'll need to do is stay
in that phase so once you move from too many freemium clients, you're going to
move to the 2 or 3 figure phase and once you find their time is being
underutilized and overtaxed, you're going to move into
the next phase of raising your prices so that the supply and demand is evenly met
and so that you're not tapped out. So how to price your product and program
because largely down to what you're willing to invest in yourself and what
the market says is a good price your product or service. Just keep in mind,
when you start low, tap yourself out there, you can't jump to the tenth rung
of the ladder without having stepped on the second one so make sure that your
progress is incremental, line upon line so you're growing out before it's
imploding on you. That way, you'll have the most success in pricing your
products. You've got the outline and the blueprint for now how to price your
products and programs but I want to hear from you so leave some Q&A down
below, I'll get back to you, hit the subscribe button and we'll see you
tomorrow.