As we turn the page on our calendar, you may notice that 2015 is right around the corner. If you’re like me, you’re probably thinking “Where did the year go?!”
You’re probably also thinking about how your business did this year, and what changes you’d like to make next year.
So, how did your revenue for this year look? How close did you come to reaching your goals?
In talking with many small business owners, I find that one of the biggest challenges they face is creating sustainable and realistic revenue goals, and then achieving them.
And there’s absolutely nothing more frustrating than starting the year with high expectations, big revenue goals, and a deep desire to massively increase the impact you’re making in your business and in the world – only to look back and see another year go by not quite hitting the mark.
Not only is it frustrating, it can be a really hard to keep motivated to dedicated yourself to yet another year, only to find yourself back where you started – oscillating between overworking without money in the bank to show for it, and underworking, wondering where all the good clients that will pay a decent wage are.
And if you’re anything like me and so many of the entrepreneurs I work with, you’re not in your business only for the money. You’re in it to make a big impact with what you do. You want to see a better world because of the work you do day in and day out. So not making your revenue goals, and not truly making the impact you want to make, is really a double-whammy.
What if you could find a way double, or even triple the number of dollars coming into your business without working more hours? And with that increased revenue, what if you could also exponentially increase the impact and results you’re able to deliver for every single client that worked with you?
I want 2015 to be the year in your business where you’re working less, earning more, and truly improving the quality of the lives you touch in your business.
Stay with me, as I unfold how this can happen for you. Let’s start with my top strategy to break free from “under-earning.”
You’ve Probably Heard About High-Ticket Programs or Offerings
I call these high-end offerings “Premium Packages.” And I feel they are the best solution for your undercharging and under-earning.
Here’s why.Premium Packages are all about helping your clients get premium results.Click To Tweet
They are about providing your clients with big results and a deep level of transformation.
Here’s the basic idea behind premium packages. It starts with designing and offering packages in the $2,000 to $10,000 range, or even more.
However, it’s not just about raising your prices.
It’s about creating packages that deliver a deep level of transformation for your client. Not just a band-aid, but the big result they really wanted when they came to you. And for you, offering premium packages help you get out of the trading time for dollars model.
Here’s how that might look:
Let’s say your aspiration is a $50K business. This would mean:
- Twelve x $4k (1 client / month)
- Seventeen x $3k (2.5 clients / month)
- Twenty-five x $2k (2 clients / month)
See how much more simple that becomes? This math can be adjusted for businesses of all sizes – $100K, $150K and beyond.
Creating a Premium Package
Now that you know why premium packages are a win for you and your clients, your next question is probably “How do you create a premium package?”
Let me give you an example from a client of mine. When Ritamarie came to me, she was already an incredibly knowledgeable health expert. But she was still charging $75 per session and often had 2-hour sessions with her clients.
Ritamarie found that it was difficult to grow her business, even though she was incredible at what she did. It took a lot of marketing – and even more selling – to continue to find clients at $75 per session. She also found working with these non-committed clients frustrating, because they wanted quick fixes and not full-blown health makeovers.
And the situation wasn’t good for her clients, either: because they weren’t fully committed to their health, their results weren’t as great as they could be.
After Ritamarie and I worked together, we changed how she positioned herself, and how much she charged. Instead of simply calling herself a health expert, she narrowed down the types of clients she focused on. She started working with clients for longer periods of time. She started requiring 6 month commitments.
Now, Ritamarie is nearing a million-dollar business. Her premium packages range from $10,000 to $30,000, and she still has a waiting list. She is now considered one of the top practitioners in her field. In fact, she is now training other practitioners in her system.
And best of all, her new premium clients are super committed, and are experiencing miraculous transformations with their health.
Can you see how switching from a dollars per hour consultative model to charging for an very specific outcome not only allows you to charge more, but it also benefits the client? Ritamarie is not only making more now, she’s helping her clients have health breakthroughs they would never have experienced by seeing her on an ad-hoc basis.
What Happens When You Don’t Create a Premium Offering?
Some of you might be thinking, “Yeah, I can see how using a premium offer worked for Ritamarie. But she was already making $75/session – that’s way more than I’m making now. I’m not ready or qualified to put together a premium offer.”
You may feel this way now, but it’s more than just about the dollar figure you’re paid for your services or coaching. It’s also about the mindset.
I learned the hard way that it’s not easy for me to do my best work when I’m broke and I don’t know where my next dollar is going to come from. I felt desperate, and those clients felt my desperation and took advantage of it. No matter how much you charge, if you’re feeling broke and desperate, you won’t attract premium clients.
Let me give you example, this time from my own coaching practice. In the early days of my business, I booked a brand new client. She was a spiritual teacher. Yet, the only way she agreed to work with me was if we had our sessions in the ungodly hour of 6 a.m. on Monday mornings. This is the worst possible time for me to work with someone, but I wanted a client – I was desperate. So, I didn’t even blink before agreeing.
At this point, you’re probably thinking that this was some kind of high-end premium client.
She was paying me (wait for it)…
$20 per hour.
Not only were we working at 6 a.m. on a Monday, but she was one of the most difficult clients I have ever had. On top of that, she was one of the least committed clients ever – missing sessions, not doing what she said she would do. And that $20 per hour wasn’t even making a tiny dent in my monthly expenses.
I learned 2 big lessons from this horrendous experience that helped make sure I would never take on a $20-an-hour client again.
Every Industry Has Room for Premium Offerings
Take a minute to think about some of the most popular industries: airlines, cars, fitness clubs, clothing, sporting events, concerts and online services. Now think about the levels of offerings in each industry. Is there a premium offering in this industry? You bet there is!
Here’s the first big thing you need to know if you want to go premium in your business: EVERY industry has room for a premium level of service.
If you think about the services you use on a regular basis, almost every one of them has a premium level.
For those who fly, not everyone flies first class. But for those who do, many would never dream of flying coach.
You can find a premium fitness country club with fees that are 10 and sometimes 50 times what you would pay at 24-Hour Fitness.
You can buy a car for $15,000 or you can buy a Tesla for 5 to 7 times that amount.
You can go to a Laundromat, put quarters in and get your laundry done under $10. Or, you can send away for a premium service for $100.
You can go to MacDonalds and eat for less than $10, or you can go to a 3 Star Michelin restaurant and pay $500 per meal.
The bottom line is that premium is everywhere, from airlines to eating out and everything in between. It might take some creativity to find your premium offering or service, but I promise you that it’s out there.
Of course, creating a premium offering might be a bit of work. And one of the biggest fears I hear from business owners when I tell them to start creating a premium offering is that nobody will buy.
Premium Clients Exist in Every Industry
You might want to bookmark this statistic:10% - 20% of the people in your audience want the best, not the average, that you can provide.Click To Tweet
If you haven’t gone premium, there is a very good chance that you are not serving people who want a premium service right now. So there is a huge opportunity for you in providing that level of service for people who want to sit in the front of the plane, so to speak. These are the people who want the best of what you have to offer in your area of expertise.
Now here’s the flip side of this phenomenon. Can you guess what % of your audience who are not going to be attracted to your premium offerings?
About 80 to 90%, right?
So there are going to be some people who want your premium services, and there are going to be a ton of people who don’t.
The beauty of it is, when you charge premium fees, you do not need tons of clients to create an awesome business.
So no matter what your business is, you have a tremendous opportunity to grow your revenue – and your impact on the world – by offering premium packages with a level of service that serves people more deeply and appeals to the best clients in your niche.
Create a Compelling Ultimate Result That Truly Articulates the Value of Your Service, and People Will Pay Top Dollar For It
So far, I’ve covered why creating a premium offer is the best way to make a greater impact in 2015, and how to create that offer. Now, let’s talk about the final piece of the puzzle: how do you describe your premium offer in such a way that your clients will pay the premium price?
If you describe yourself as a massage therapist, a yoga instructor, or a coach, that is a very general description. It’s an occupation, it’s what you do. It doesn’t speak to who you serve or what transformation you provide.
And if you’re positioning yourself in the marketplace as a yoga teacher, you’re going to have a much harder time charging a premium for your services, because your clients can go to a class for $15, or hire a teacher privately from $45-$75 an hour.
To get out of this dollars-for-time rut, you have to position yourself differently and articulate what you do differently, and draw upon your background/areas of expertise to create high-value transformational service packages for clients to experience lasting results.
For example, when I started working with Gretchen, she described herself as a tutor for high school kids aspiring for academic excellence. She is incredible at her craft. She loves her kids and loves to decode what is the best and most individualized way for each of her students to learn. I love her passion.
When she first started to work with me, she was charging her students $85 per hour. The students loved her, but their parents weren’t appreciating her as much as they could. Gretchen was definitely under-earning and undercharging.But, because lots of tutor already charge less than $85 per hour, Gretchen initially resisted creating packages and raising her fees.
After a few sessions with me, and some research on her own, she stopped trading time for dollars. She created an awesome “Have your best semester ever” package, for which she now charges $2000. And that’s a whole different ball-game.
Her confidence has soared. She now has a team supporting her business – a book-keeper and social media manager and perhaps another team member as well. She is on track to create a 6-figure business in a field full of undercharging and underpaid tutors.
And she now gets to help tons of kids and families who are wanting support with their studies. Her business is getting so full, we’re working with her to create premium group programs, so she has more capacity to serve clients without having to work more hours. And that’s one of the things that’s possible for you when you focus on going premium.
So whichever category you’re in, whether starting out, or more established, you don’t need to wait to build a big list, you can just get started now with creating premium packages. You’re probably just a premium package away from having the biggest month in your business.
Your Premium Package is Just Around the Corner
Premium packages are by far the best way I know to exponentially increase the impact you can make with your business, while doubling your revenue and working fewer hours. My hope for you is that you make 2015 your best year in your business by attracting high quality clients, and creating massive transformation for every single person that walks through your doors.
If you’d like to learn more about how to create premium packages for your business, I’d love to offer you my Premium Package blueprint, which lays out my step-by-step approach for creating premium packages for your business.
So tell me – what’s one thing you can do NOW to increase the transformation you provide your clients, and pave the path to increase your rates in 2015? I’m looking forward to our conversation in the comments below!