• SHOP
  • SITES
  • NEWSLETTER
  • CEO HACKS
  • GLOBAL SEARCH
  • WEB SUPPORT
  • CONTACT
Rescue a CEO
  • Advice
    20 Entrepreneurs Reveal The Best Way to Learn Leadership

    20 Entrepreneurs Reveal The Best Way to Learn Leadership

    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    21 Entrepreneurs Share Advice on Building a Team

    30 Entrepreneurs Share Advice on Building a Team

    7 Entrepreneurs Share How They Approach Tax Planning

    7 Entrepreneurs Share How They Approach Tax Planning

    8 Entrepreneurs Share Advice on Securing Venture Capital

    8 Entrepreneurs Share Advice on Securing Venture Capital

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share Their Best Delegation Tips

    30 Entrepreneurs Share Their Best Delegation Tips

  • Productivity
    16 Entrepreneurs Share How They Focus

    16 Entrepreneurs Share How They Focus

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    Teaching an Old Dog New Tricks – How Working From Home is Cultivating a Creativity Revolution

    Becoming Productive: Finding Your Balance

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

  • Answers
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

  • Marketing
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

  • Blog
  • MORE
    • START
    • FAQ
    • NEWSLETTER
    • HACKS
    • ABOUT
    • SITES
    • GUEST POSTS
    • WEBSITE SUPPORT SERVICES
  • Community
    • FREE CBNation Buzz Newsletter
    • Premium CEO Hack Buzz Newsletter
No Result
View All Result
Rescue a CEO
  • Advice
    20 Entrepreneurs Reveal The Best Way to Learn Leadership

    20 Entrepreneurs Reveal The Best Way to Learn Leadership

    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

    21 Entrepreneurs Share Advice on Building a Team

    30 Entrepreneurs Share Advice on Building a Team

    7 Entrepreneurs Share How They Approach Tax Planning

    7 Entrepreneurs Share How They Approach Tax Planning

    8 Entrepreneurs Share Advice on Securing Venture Capital

    8 Entrepreneurs Share Advice on Securing Venture Capital

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share How they Find, Recruit and Attract Talent

    30 Entrepreneurs Share Their Best Delegation Tips

    30 Entrepreneurs Share Their Best Delegation Tips

  • Productivity
    16 Entrepreneurs Share How They Focus

    16 Entrepreneurs Share How They Focus

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Get Out of One’s Comfort Zone

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    30 Entrepreneurs Share Their Thoughts on The Future Impact of Coworking

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    29 Entrepreneurs Explain Why They Have OR Don’t Have A Virtual Assistant

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    30 Entrepreneurs Explain How They Maintain Balance as CEOs

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    25 Entrepreneurs Explain The Best Ways to Get Out of One’s Comfort Zone

    Teaching an Old Dog New Tricks – How Working From Home is Cultivating a Creativity Revolution

    Becoming Productive: Finding Your Balance

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

    20 Entrepreneurs Explain the Best Ways to Encourage a Team to be Disruptive

  • Answers
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    17 Entrepreneurs Explain How They Keep Track of Their Numbers

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Retain Top Talent

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share How the Workplace Has Changed

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share What They Had to Pivot and Shift Within Their Business During the Digital Migration

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Share How They Stop Burnout from Happening

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

  • Marketing
    30 Entrepreneurs Explain How They Use Their Blog for Business

    23 Entrepreneurs Explain How They Use Their Blog for Business

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    25 Entrepreneurs Share Their Thoughts on SEO and Its Future

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    11 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    29 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Blog for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

    30 Entrepreneurs Explain How They Use Their Podcast for Business

  • Blog
  • MORE
    • START
    • FAQ
    • NEWSLETTER
    • HACKS
    • ABOUT
    • SITES
    • GUEST POSTS
    • WEBSITE SUPPORT SERVICES
  • Community
    • FREE CBNation Buzz Newsletter
    • Premium CEO Hack Buzz Newsletter
No Result
View All Result
Rescue a CEO
No Result
View All Result

Why It’s Time for Business Owners to Stop Hiding Behind Low Prices

in Advice
Reading Time: 4 mins read
Why It’s Time for Business Owners to Stop Hiding Behind Low Prices

Many freelancers, entrepreneurs, and new business owners instinctually equate time for money and charge rates by the hour. And even if they don’t charge hourly, they’ll often still create a project fee based on hourly rate. This seems fair at first, because so many of us are familiar with phrases like “time is money.” It’s this kind of maxim that’s at the root of our understanding of pricing. However, the “time is money” model often ends up making you a lot less money than the actual value you’ve put into your work. That’s where value-based pricing comes in.

The Problem with Trading Time for Money

Truthfully, there’s another popular adage that’s far more suited for modern entrepreneurship: work smarter, not harder. That’s what we should all be aiming for! And the secret to working less and charging more? It’s in charging for the value you have to offer. 

RelatedPosts

20 Entrepreneurs Reveal The Best Way to Learn Leadership

18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

Initially, some entrepreneurs tend to feel bad for working less and making more. Why? Maybe they don’t feel like they deserve a larger payout for what they feel is less effort. But when you price based on value, both you and your client are getting a better deal out of it. What people really hire you for is what you really have to offer: your experience, knowledge, execution, and results. Not the time you’ve spent working on a particular project. 

See also  Bitcoin vs Real Estate: Which One Is More Lucrative?

You naturally tend to work faster when you’ve already spent the time, resources, and energy to build your working expertise. And that’s what your client pays for. The time you spend on a project doesn’t really matter when you’ve already put in the time to hone your craft and deliver quality. In that sense, charging for the time becomes unfair for the actual amount of work you’ve put in and the value it provides! Let me show you how this works.

Running a Value-Based Ad Campaign

If your client is running a campaign with an ad budget of $10,000 dollars, you could charge a percentage to run that campaign for them. Let’s say you charge 10%. So set up and manage the $10,000 ad campaign, and send an invoice for your $1,000 management fee. 

From there, let’s say the client makes $50,000 in extra sales from the campaign you ran. That $1,000 fee is just a drop in the bucket at that point. Now that the client sees the value, they might decide to up their ad budget the next month, maybe significantly. Let’s say in this case they decide to increase their budget to $100,000. They’re thinking they can expect around $500,000 in sales from that investment, based on their first return on that $10,000 budget. 

You’re still going to charge your 10% fee on the $100,000 ad budget. So this time your fee is $10,000, ten times what it was the previous month, because the budget is ten times the size. How much extra work do you need to expend to justify this cost increase? Add one zero to the campaign budget in Google Adwords or copy some ad sets in Facebook. That’s it.

See also  5 Ways Snapchat Can Benefit Businesses

Yes, I may be oversimplifying things here but it doesn’t take ten times the work to increase your income by ten times what it was before. And it doesn’t add a dime to expenses, because you’ve priced your services based on the value you’re adding for your client. It’s all part of value-based pricing—trading value for money, rather than trading time. 

Hone Your Craft, Increase Your Bottom Line

Even if there isn’t a monthly budget like I demonstrated in the above example, there are other ways to employ value-based pricing. Let’s say that after 100 hours of trial and error, you came up with an amazing sequence to sell your clients products. You charge the client $1,000 per month to run that campaign. 

When your next client comes along, you know what to do. It won’t take you 100 hours this time, maybe just a few hours. But you’re not going to charge less, because you’re still providing the same amount of value. You just know what you’re doing this time. The value is the same, even if the time it takes has changed. That’s what value-based pricing is all about! 

Feeling concerned about charging the same at less time? Consider this: you still put in that same initial amount of time to figure out your business and make an effective ad campaign. You just got better at it over time, making your services all the more valuable because you know what you’re doing. This is truly value-based pricing: providing a valuable service that allows you to work the way you want, when you want to, and enjoy your life as an entrepreneur. 

 

See also  Low-Cost Promotional Tactics That Small Businesses Can Use

Author bio

Dylan Ogline, founder of Ogline Digital, believes that anybody can start and build their own digital agency, creating a life with more freedom, purpose and meaning. Dylan's training program is designed to take the guesswork out of building an agency and remove all of the unknowns that stop so many people from starting their own business, all in just six weeks. Visit his website, on Facebook @dylanogline or on Instagram @dylanogline.

 

Tags: pricingvalue-based pricing
Previous Post

2021 eCommerce and Amazon Predictions

Next Post

5 Fresh Startup Ideas of 2020

Related Posts

20 Entrepreneurs Reveal The Best Way to Learn Leadership
Advice

20 Entrepreneurs Reveal The Best Way to Learn Leadership

Leadership is a multifaceted skill that plays a pivotal role in personal and professional success. It's a quality that can...

18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources
Advice

18 Entrepreneurs Share Some of The Best Leadership CEO Hacks and Resources

To be an entrepreneur and business owner, you have to understand leadership and be excellent at it. There are numerous...

8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style
Advice

8 Entrepreneurs and Business Owners Explain How Coaching Has Affected Their Leadership Style

The evolution of leadership style has been profoundly influenced by the dynamic and enlightening journey of coaching. This process of...

16 Entrepreneurs Reveal How They Market Their Business During the Slower Months
Advice

16 Entrepreneurs Reveal How They Market Their Business During the Slower Months

Slowing sales can be a foreboding sign that a business is failing to retain customers and attract new ones. During...

Next Post
5 Fresh Startup Ideas of 2020

5 Fresh Startup Ideas of 2020

Essential Social Media Marketing Tactics At The Times Of COVID-19

Essential Social Media Marketing Tactics At The Times Of COVID-19

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join CBNation Buzz

Name(Required)
Email(Required)
This field is for validation purposes and should be left unchanged.

Welcome to CBNation Welcome to CBNation powered by Blue16 Media (Web Design & SEO). We are a B2B brand that is exists to help over 1M business owners succeed. Our philosophy and foundation is based on resources, visibility & connections (Visibility + Resources x Connections = Success). We are focused on being the #1 business resource for CEOs, entrepreneurs and business owners.

We hope you enjoy this site, and please let us know if we can be of any help!

Please note in the sake of transparency our sites do contain affiliate links that pay us a small commission at no extra cost to you. Read our Affiliate Disclaimer.
CBNation Library
CEO Hacks
I AM CEO Volume 3

RSS Our Latest CBNation Content:

  • IAM1869 – Law Firm Founding Member Offers High Mission of Service to Clients
  • Monday Motivation: Discipline Yourself – BEST Motivational Video (ft. Eric Thomas)
  • IAM1868 – Author Helps Leaders Achieve Success as Individuals and in Teams
  • Leader Works on Strategic Fundraising Communications
  • Attorney Runs Digital Agency Focused on the Legal Sector
  • 20 Entrepreneurs Reveal The Best Way to Learn Leadership

Our Sponsors

Subscribe

Join thousands of subscribers & be the first to get new freebies.

Name(Required)
Email(Required)
This field is for validation purposes and should be left unchanged.

What is CBNation?

We're like a Global Business Chamber but with content...
LOTS OF IT

CBNation includes a library of blogs, podcasts, videos and more helping CEOs, entrepreneurs and business owners level up

CBNation is a community of niche sites for CEOs, entrepreneurs and business owners through blogs, podcasts and video content. Started in much the same way as most small businesses, CBNation captures the essence of entrepreneurship by allowing entrepreneurs and business owners to have a voice.

CBNation curates content and provides news, information, events and even startup business tips for entrepreneurs, startups and business owners to succeed.

+ Mission: Increasing the success rate of CEOs, entrepreneurs and business owners.

+ Vision: The media of choice for CEOs, entrepreneurs and business owners.

+ Philosophy: We love CEOs, entrepreneurs and business owners and everything we do is driven by that. We highlight, capture and support entrepreneurship and start-ups through our niche blog sites.

Visit CBNation

RSS Our Latest Content:

  • IAM1869 – Law Firm Founding Member Offers High Mission of Service to Clients
  • Monday Motivation: Discipline Yourself – BEST Motivational Video (ft. Eric Thomas)
  • IAM1868 – Author Helps Leaders Achieve Success as Individuals and in Teams
  • Leader Works on Strategic Fundraising Communications
  • Attorney Runs Digital Agency Focused on the Legal Sector
  • 20 Entrepreneurs Reveal The Best Way to Learn Leadership
  • IAM1867 – Coach Helps Sales Marketers Create Repeatable Patterns of Success
  • IAM1866 – Results-Driven Performance Coach and Consultant Helps People Achieve More Happiness, Fulfillment and Success
  • 7 Entrepreneurs Explain How They Use Their Podcast for Business
  • IAM1865 – Performance Coach Helps Women to Focus on Inner Work and Mindset Mastery

©2023 CBNation | Powered by CEO Blog Nation & Blue16 Media | Terms of Service | Privacy Policy | Affiliate Disclaimer | Website Support Services

No Result
View All Result
  • Advice
  • Productivity
  • Answers
  • Marketing
  • Blog
  • MORE
    • START
    • FAQ
    • NEWSLETTER
    • HACKS
    • ABOUT
    • SITES
    • GUEST POSTS
    • WEBSITE SUPPORT SERVICES
  • Community
    • FREE CBNation Buzz Newsletter
    • Premium CEO Hack Buzz Newsletter
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
SettingsAccept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
 Share This
 Facebook