Currently a noob in lead nurturing but I’m making headway.
Sharing the most salient points I’ve learned from 3 mentors in the past week.
Underlying assumption of all 3 mentors is you never compromise on price. Compromising on price means you are training the market that your brand/company is willing to do a lot of work for very little pay. Lowering your price may get you your first few clients (because you’re the cost leader) but entering the market as a low-ticket provider also enforces your ceiling in the mind of the market.
Mentor 1: Offer a Pilot Program.
If you must reduce prices, then offer a Pilot Program. Tell the client, alright we’ll do it for 1/2 of the original cost with the condition that you will give us a review after the project has been completed. Tell them explicitly that this is a pilot program offering. If you charge full for the next client and the client responds by saying “but the first client got it for this much only”, you can say, “oh that was on our pilot program and the pilot program has ended.”
Mentor 2: Commission per lead.
Say, “Alright, you really don’t have money to spare, but we really want to help you out with this, are you open to giving us a 6% commission per lead you are able to convert?”
Scenario 1: “Sure!”. If per lead has a 4000 return (6% of 4k is 240). Ten leads = 2400.
Scenario 2: “No, because what if your service ends up bumping the lead count to 10x more than what we have, that means you get a lot!”. Respond with, “Oh, are you really not happy if the system we developed for you gets you 10x more customers?”. “No, we just want to set a cap on your commissions”. “If that’s the case, isn’t it simpler to just pay us the full amount we requested initially since that full amount is actually less than the potential commission per lead we will generate?”. “But what if we don’t 10x the number of customers?”. “Well, that’s why we’re saying we do it for free, then we just get 6% of all converted leads, no risk to you – if we end up not having a single lead converted you still have the system, we get nothing- in this setup, all the risk is on us. So you have to choose, pay us our initial asking or give us commission per converted lead”.
Mentor 3: Offer a performance guarantee
Say, “Pay us full price for 6 months, and we’ll make sure you get ” (convert 500 leads, reduce the work that 1/2 of your workforce do by 1.5hrs per day, get 20 annual subs to your service, 1000 payment transactions). If we don’t reach the target by 6 months, we’ll continue to work with you for FREE until you do.
*On working for FREE until target is reached VS Moneyback guarantee: Don’t offer moneyback guarantee because that’s reputational suicide. The next client just interprets that as you weren’t able to do what you promised you will deliver.