How to price your products and services.
Have you ever wondered how much should I be charging for what I'm doing?
Is this too much?
Is this too little?
Why is that guy charging more than me?
Well, in this interview style episode, Nate and I are going to tell you exactly how you
should be pricing your products, how you should be packaging them, and how you can deliver
the maximum value at the best prices.
All right, let's go.
So pricing is always a question that business owners knew, but also experienced
had because they're creating new things.
And it's like they hear somebody else new.
It's like, well, how did you choose your pricing?
So I'm interested to have this conversation with you.
Because you've obviously figured it out from taking these YouTube leads, and converting
them into sales in the last year from YouTube leads.
You said your revenue has been about five or $6 million?
So we're not talking about any ad revenue, the sponsorships.
This is we're talking about lead revenue, correct.
And so looking at it at a YouTube audience, typically, YouTube is ready to buy at a lower
price point program or product or service.
But yet you've got products on the way, I do.
So how do you how do you navigate that?
Yeah, so it was so funny, because I was originally told that when you are taking leads from Youtube,
that they are not going to be highly qualified, they're not going to be you know, high ticket
type of offers are not going to be 5,10 $20,000 people, you're really only going to be able
to sell things for 17, 20 and $30, and things like that.
And I just did not find that to be true.
First of all, I would think that I will tell you this, though, you're going to have to
bring them into your world, you can't just go on to YouTube and try to sell products
and services.
And I think that's where it really gets messed up at.
So when we're talking about pricing your product and your service, I don't necessarily think
of my lead as being a YouTube leads.
So I have to price it according to YouTube.
No, the point of YouTube is to teach, to educate, I make my videos and share the best content
that I can, I try to answer their question to the best of my ability with the most detail.
You know, I tried to be clear with what I'm saying and concise.
And then at the end, the call to action is the call to action.
That is the only opportunity where I'm ever selling anything and I'm not even selling
anything, I'm really just making your offer to get my book or get my download.
So we're talking about pricing my product, that is not really affected by YouTube,
it's really not because I do not use YouTube as an indicator as of my price.
It really is what is the value of this.
And that's how I price.
So if I'm going to work with you for mentorship, I'm not gonna say well, this person came from YouTube.
So I can only charge them $500 for mentorship, but this person came from LinkedIn,
so they're richer, and I'm gonna charge them 10,000. No, your leads, you still want to be
fair and an integrity and not judge your leads by where they came from.
That just is not a thing that you're going to do.
I really appreciate what you say there.
And I do have to admit, I heard a story from one of my clients that came to him and said,
Hey, I've got $20 million to invest.
Can you help me?
I watched all of your videos and like this was just a straight YouTube lead.
Yes.
And it's like, yeah, so yeah, that makes a lot of sense.
Because again, you have no idea.
And just to say just because someone's judging YouTube, how would you possibly know their
financial situation like that makes absolutely no sense.
I have celebrities, actors, professional athletes that have called my company and said
they found us on YouTube, everyone, oh, YouTube is owned by Google.
So there's no reason to think that your pricing or how you price your product
should have anything to do with where the lead came from.
So we can talk about some stuff on why you how you price your products, but we're gonna
get clear, it doesn't matter where they came from
go well, that yeah, that makes sense.
And that's where I was going in my mind too is okay.
So the way that we determine the pricing has to do more with the value in what's being
delivered, correct?
Not the lead source, correct?
How do you determine that?
Okay, I've got this course.
How do you put a price tag on that?
So it's really going to depend most likely on how long, how much access they have to me
and my team.
So one of the things that I feel, of course, is most valuable is time, obviously how much
time you have speaking directly to me or speaking directly to one of my master coaches.
So as I increase the amount of time, how many calls, how many interactions that we have
with each other, that's going to increase the price and the value.
However, if a lot of the things that you're doing, you're doing them by yourself, they're
DIY, you know, you're doing it yourself, I just told you how to do it, then those are
going to be more inexpensive.
If it's going to be where I do it with you.
That's going to be a little bit more.
It's going to be a little bit more expensive than you doing it yourself and then done for you.
We're out I do all of it, or my team does all of it, that's gonna, of course be the
most expensive.
So that's probably one of the lower ways that you will decide or the easier ways
that you will decide how to price your product or your service, how much time and access
do they get with each package, and then kind of start thinking accordingly. If they require
a lot of your time, then you should be charging for that accordingly.
So I 100% agree with that.
And I always like to add that that's not how you describe it to them in terms of you're
gonna get this many hours.
And so this is how much it costs.
But that's how we can start to think about it is.
And another point, it took me many years in business to actually understand what profit is.
Yeah, I thought that this is how much it costs me and to, you know, in this, I need
to make this much income.
So I'm going to charge this amount.
I thought that was a profitable business.
But no, that's that's that the profit is zero.
Yeah.
And so I learned that, okay, I've got to increase the price of this service, so that I have
extra money that I can put in savings, that's actually profit.
Reinvest and reinvest and grow and whatnot.
And so having that that's one thing is like, so to determine what you need to sell a product
or service for, you got to look at all those things, the time, the expense, what the costs
are, and you need a margin for profit.
That's right.
And then, as you describe that to the customer, you're talking to them about the results and
how it's going to help them achieve their goals.
And so when they look at the price point, it's like, yeah, I'm willing to invest 5000,
or 10,000, because this is what it's going to do.
For me, this is what I'm going to benefit over the next six months and where it's going
to take me yeah, and they can visualize that.
And they can see that.
And I think the better you are at quantifying what their result is or what the destination
is, the better you can justify it.
And they can see the value in your price.
Because there's a big difference between price and value.
And you know, a lot of people want to talk about the price, the price, the price, but
what is the value that you're going to bring?
What are they going to be able to get out of it.
And so one of the things that I absolutely loved about you, when I came to you, of course,
you know, you say okay, let's do this YouTube channel, and then you know, you had a bigger
price tag than I was expecting.
But at the same time, you were easily able to explain to me quantifiably with numbers,
how this was going to pay off for me if I did what you said.
And so not making any guarantees.
Again, you can't guarantee someone's success or anything like that.
But at the same time, you can use past results to say, hey, here's some of the things that
I've done before I worked with this person, we did X, Y, and Z.
And this is the result they got, you do those things, you can expect a similar result.
And so those are the things that you can do to talk about the value that you bring
so that you're not always talking about the price of what you do.
So what would you say to somebody if they're newer in business, or they're
afraid of asking for what what it's really worth?
Yeah, let's talk about that
Because you say what your prices, okay, so that's another thing,
there's no price ferry coming along, you just charge this, you could charge this you and
you know, I'm telling you what you can charge, it is definitely you as an entrepreneur, so
you have to know what your value is and what you're comfortable selling and delivering
on because there are people that still charge more than I do, you know what I mean?
I literally have students that I coach them, and they now charge more than I do for mentorship.
Is that an issue?
Absolutely not.
And do I think that they're doing something wrong by charging more than I do, or less
than I do?
No, it's about you, your service and your value.
So there was no price theory that tells you if the price is right or wrong, it really
is going to become come down to the value that you're bringing.
And to I think though, you should be able to justify and quantify your price to your
value, I really do be able to you you should be able to do that. I don't think
you should be charging somebody $5,000 And they have no idea how to get that $5,000 back.
That's just me, to me,
that's kind of the measurement of integrity.
It's like, yeah, we're in business to really provide value.
So that that assumed right, then yeah, just have confidence.
The the reassuring thing about the YouTube strategy that we implement is this conversation
is a lot easier, because they come to you they've got their credit card in hand.
And so you're not having to overcome those barriers.
A lot of their objections are already clarified because they've watched so many of your videos,
And now they really want to work with you and they understand the value it's like yes,
I get this opportunity.
I'm willing to invest that because you're gonna help me get there it's like the it's
just an easier conversation.
It really is.
Each video is almost like a pre sales call.
You know, you're getting them to like you, trust you, they value you.
Wow, I hope you really enjoyed this episode. We really went there.
I have a free gift just for you.
Do you want to know exactly what I say or my strategy sessions?
Will I have my free template just for you. Go to noellesfreegift.com and pick
up my strategy session template so you can see the exact script that I say so that you
can say it to.
Again that's noellesfreegift.com. Noelle, n-o-e-l-l-e with an S. noellesfreegift.com.
I just want to make sure that you have all of the resources, all of the tools and all
of the knowledge that you need to be successful.
This is Noelle, to your success.