- Five secrets for making $100,000 plus
as a consultant and coach, and as a service provider.
I wanna ask you a question, very important question,
no bullshit answer, how many of you believe
you could charge more for what you do?
Okay, and how many believe you deserve to charge more
for what you do?
Okay, and how many of you, if you do charge more
for what you do, you could and you're willing
to deliver more value to your clients?
Yes?
And how many of you want to work with better
and more qualified clients?
Very good, very good.
- [Narrator] The King of High-Ticket Sales.
World's Highest-Paid Consultant.
Media Celebrity.
Multi-Millionaire Entrepreneur.
Acclaimed TEDx Speaker.
International Best-Selling Author.
(dramatic music)
Dan Lok.
(dramatic music)
- So let me share with you the secret number one.
Please write this down,
and that is start charging premium prices
from day one.
From day when?
- [Audience] One.
- Day one.
A lot of entrepreneurs
sometimes when they start their business,
they think in terms of well you know, Dan,
I'm new to this, so I haven't charged anyone yet,
so I should start at a what?
At a what?
- [Audience] Lower rate.
- Lower rate.
So I can kind of earn my right to eventually
to charge what I believe I'm worth.
Or, you know, I was looking online, Dan,
and I saw other people charge X,
and I don't have much experience,
so I'm not gonna charge as much.
They charge this, I should just, you know,
to get some customers, I will charge a little bit less
than they do.
Or, you know, I'm offering a new rate,
so I could just, you know, get some case studies
and get some testimonial.
How many have said that to yourself before?
Be honest, yeah.
Just offer a lower rate, so I could just
kinda fill my portfolio, yes?
- [Audience] Yes.
- Okay.
Oh yeah, but people won't pay that much
for what I offer anyway.
They won't pay that much.
What I do is not that important.
It's not worth a lot of value.
The problem, now, there's a time and place
for a special offer, ie. if you say you charge $5,000
and for someone, when they take action right now
you charge them $4,000, it's a marketing technique
to create urgency, yes?
- [Audience] Yes.
- That's okay, but there's a big difference
in terms of value, when you think you wanna charge $5,000
but then you charge $500 to start with.
That's not a discount, it's a difference in value,
does that make sense?
How the market perceives you.
I'll give you a perfect metaphor,
and before I get into that,
why I believe undercharging seriously harms your business
and happiness.
There are five problems.
How many problems?
- [Audience] Five.
- Five problems,
you run into when you charge too little.
Number one, short client engagements,
because you don't charge a lot
so you're always needing new clients.
To the pay the bills, so because you don't charge enough.
Number two, client's get minimum results
because it takes time to get a result.
It takes time.
Back then when I was doing platform selling,
when I was doing platform selling,
and I would speak and we have, let's say,
300 people in the room and I would make an offer,
I'd say hey, you know, go to the back of the room
and please buy my package at $2,000
and we have 10%, 15% of people
and they would rush the back and they would
make an investment and buy the product,
the problem with that and why I got out of that,
what I notice is people who buy my courses,
90% of the people never even opened it.
They do not use it.
They're success rate is so low and it bothers me.
I thought why are they making that investment,
yet they don't use anything and I realize
even it's $2,000 to some people, maybe a lot of money,
but the truth is, for like if we live in Vancouver,
it's not a lot of money, yes?
It's 2K.
It doesn't make or break it, it's 2K.
So that's the level of commitment that they have,
no here's the problem, I'm just taking you behind the scenes
to give you some inside info.
As a speaker, if there is, I'm speaking on
other people's platform, the promoter,
the event promoter usually gets 50% of the sales.
You guys know that?
That's how it works, they get 50% of sales.
So, the one $2,000 the promoter, the event promoter,
keeps $1,000 and I keep $1,000, yes?
Now here's the problem.
The $1,000, that investment, when I sold
20, 30, 50, 80 people in the room
and they invest $1,000 and they want more help,
they want some additional help.
It's very difficult for me to provide that additional help,
cause my time is worth a lot.
Even though I want to help them, I can't
because that's the investment that they've made.
Does that make sense?
That's the issue.
So, I would be not being truthful,
if I tell you, hey you know, I want to care
about these clients, it's very difficult
because that's why they have invested.
Does that make sense?
Sometimes, I don't even know what they do,
they buy the package,
they fill out the order form,
I don't know who they are.
I don't know what they do.
I don't know how I can help.
I can't, I can't.
No different than someone, they go to Ken Do
and they buy one of my eBooks.
I don't know who the fuck they are.
I don't know who they are, right?
I just get a check every month
from Amazon, hey you've sold X amount of eBooks.
Because it's a $10, $20 sale.
That's why.
Clients don't value you, then they don't show up
and they don't do the work.
Let me ask you a question.
How many of you have one work for clients for free?
And they don't appreciate it
and you bend over backwards,
you try to go the extra mile at the end
it comes to bite you in the ass.
That's why.
Write this down, the more people pay for something,
the more they value it.
People vote with their wallets.
The more they pay for something,
the more they value it.
So you are actually doing them a disservice
by charging them less, because, well,
their client is not very committed,
then you are not very committed,
both are not very committed,
then how can you create results for them?
Versus, you have a very committed client
and you are very committed,
now it's a different relationship.
Yes.
- [Audience] What if sometimes you charge the high end
and it actually increases their expectations (mumbles).
But then when they see your service,
and your service is actually down here and-
- That's an expect question.
What I'm talking about is,
my methodology, tell your right now,
my methodology will 100% fail you
if you don't do great work.
If your work is shit, don't apply what I teach.
I'm serious, it won't work.
It only works if you are truly awesome at what you do.
You truly deliver value, because when
you are charging that kind of prices,
yes, do people have high expectations?
The only way that it would work,
the overall underlying principle is,
you have to deliver results.
Period.
As my mentor taught me years ago,
hey Dan, no fee is too high for success
and almost any fee is too high for failure.
You have to deliver results,
meaning they follow what you do.
You provide a service,
you deliver your work,
you provide your expertise,
if they follow through, if they take responsibility,
and they follow through, are they gonna get results?
If they answer's yes, great.
If not, it means that maybe you need to change
what you do and you need to be come better.
So you can charge what you're worth.
Yes?
So you need to develop yourself a little bit more right?
Also you need a lot of clients,
because we're not charging enough,
you need a lot of clients because since the income
from each client is so low,
if you're selling something for $500,
you wanna make $10,000,
well you need to sell a lot of clients.
A lot of clients and the problem is
when you're stuck in that selling mode,
and I'm not saying don't sell,
as an entrepreneur, do we have to sell?
Yes?
- [Audience] Yes.
- Anybody not doing selling?
Okay, good.
We have to sell, but you don't want to be stuck
doing that for a long time.
Goes back to the internal marking guru friend that I have.
The biggest difference between my lifestyle
and his lifestyle, he spends 90% of his time selling.
Writing e-mails, doing offers, let me do the webinar,
let me sell the next program, let me do the trial offer,
let me one more traffic, let me do all these things.
I spend 90% of my time just serving.
I spend maybe 10, maybe 15% of my time selling.
Most of what I do, just serving the clients that I have
to make sure they get results.
Instead, different in focus, yes?
That's what I'm talking about.
Last, a new client makes very little difference
to your income, because well, you know,
they spend a little but of money,
not a lot of money, you don't care that much,
they don't care that much, and after a while,
kinda the guilt kicks in, oh man, you know,
this is kinda pain in the ass
and I don't want to do this, I'm not making enough money,
but I kinda feel guilt, I gotta do this,
gonna charge a little bit of money.
It becomes this cycle.
Remember, business is a game of margins, not volume.
Please write this down.
Business is a game of margins, not volume.
It's not about revenue.
It's not about revenue, at the end of the day,
how much money, net you're put in your pocket,
you'll take home pay.
You'll take home pay.
Does that make sense so far?
Yes?
- [Audience] Yes.
- Hello.
- [Audience] Yes.
- Okay
(dramatic music)