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Business Strategy: What are some ways to charge for service - based on creation of value?
JL
JL
Jason Lengstorf, Expert in location independence/work-life balance. answered:

If you're talking in terms of service-based work (freelancing, consulting, etc.), then ALL of sales should be based around the value you're creating for the client.

If I build a new marketing funnel for a client and they see an extra 100 leads per month — assuming their standard conversion rate for new leads of 5% and an average lifetime value of $6,000 per new customer — I've just created a pipeline that will feed this company $30,000/month of new revenue in perpetuity.

Even if that work seems easy for me, I need to be charging on the value I create. I've coached many freelancers who struggle with the idea of charging for their work, and it's always because they're framing it on hours or difficulty rather than value.

But if you sell on created value, your fees are essentially an afterthought: the client knows what they stand to gain, and paying you 20% of their first few months' revenue is a steal in their minds.

If you'd like to talk specific strategies for sales, I'm happy to share what's worked for me. Drop me a line.

Good luck!

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