Today, let’s talk about a big challenge that Facebook marketing agencies are struggling with. That is the challenge of knowing what you’re worth — and getting paid what you’re worth — without a bunch of push back from potential clients.
And here’s the secret. Right up front. It’s actually a pretty simple concept when you think about it: People are always willing to pay for what they want when they see the value in it.
In other words, if you’re offering Facebook advertising or other marketing services that help businesses grow and you want to charge them $5K a month and, as a result from working with you, they know they can haul in $10K or $15K a month … what are the chances they’re going to say, yes?
A no brainer, right?
But what if (and I am hearing from people every day about this) you want to charge that $5K, but your client might only make $3K. Now what are the chances they’ll work with you?
And then there’s an even more common scenario … people who contact me, saying, “Oh my gosh, Billy, I don’t really know what kind of results my campaigns yield so I don’t know what to price.”
If one of those last two scenarios describes your situation, STOP! STOP Right Now and Listen Up!
If you don’t know enough about your business or service, or the real value you offer your customers, you need to stop what you’re doing, take a step back, and rethink your business.
It may be that you just need to develop some good case studies from some of your Facebook marketing campaigns to prove to your prospects (but more importantly, to yourself!) that what you do provides a ton of benefits and carries real monetary worth. At the end of the day every business owner just wants to make more money and if you can’t show you can do that for them, then you’re in deep sh*t!
Let me say that again — If you can’t clearly show your clients how you’ll make them more money, then you are f*cked!
So, here is the reality of this situation. People are willing to pay almost any price for something they value highly. And they decide that value based on the experience that they get.
For example, my employee, Reena loves music and listening to live bands. And every year she pays $350 to go to the Coachella Valley Music Festival.
Yeah, you saw that right. Three Hundred and Fifty Dollars for one ticket!
Now me, I’ll watch a video of it on YouTube and I’m good. But Reena, her love for this is on a whole other level. So for her, dropping $350 for a ticket makes sense.
That’s because she sees the value: It’s a three day event with a bunch of bands she really likes. She says she’d actually be willing to pay the $350 to see just a couple of those bands live.
But the Coachella managers are SMART marketers. Instead of trying to get people to cough up 100 bucks or so per band, they bundled all the bands into that one price.
That skyrockets the value for Reena and other fans.
And Reena has happily paid that money every year for five years!
She’s been to the festival five times and paid $350 dollars every time. So the company behind it has made well over $2000 from her over the years… especially when you take into consideration how much she’ll spend on food and drinks during the 3 day event.
That, my friend, is how you create recurring revenue in your own business
You deliver an experience that makes your prospects and customers want more … again and again and again. Just the way these festival people grabbed Reena. They’ve got her hooked. They figured her out and they delivered a deal she can’t resist.
So, keeping this in mind, let’s talk about how to deal with the most common struggle I hear from people in Facebook marketing. The price objection.
That moment when you know you’ve had a great conversation with a prospect, and he seems excited about what you’re saying. But when it comes time to talk money, you see the wall go up behind his eyes, his posture stiffens slightly and his whole attitude changes — becomes politely (or not so politely) resistant.
Then comes that dreaded phrase, “You know, I really like you and I think this is great, but I just really can’t afford it right now.”
Well, what the…
You’ve just spent three days, maybe three months, chasing down that prospect and he just looks you in the eye and says, “I can’t afford it”?
Now, if you’ve been paying attention here … you know what he’s really saying, don’t you? What he’s really saying, is “It’s just not worth it and I don’t really believe that it’s going to work.”
When I first started out as a Facebook marketer, sometimes I would charge as little as 300 bucks just to land a client. And people would still say they couldn’t afford it — even though I knew they could. It’s the favorite, fall-back phrase for “I don’t really believe in you” while trying to avoid the discomfort of being straight up about it.
So what now, you ask?
Well we know the problem and what’s behind it. Now, let’s talk about the solution.
Let me show you an example.
I had a recent conversation with my cool sidekick Reena, and asked her what she’d say if told her I would sell her a Ferrari, right now, for $20K.
Then I added, “Let’s pretend you had only 100 dollars in your checking and savings accounts combined, but I’ll sell you my Ferrari for $20K. What would you do to get your hands on that Ferrari?”
“Is it a new Ferrari?” She asked.
“It’s brand new, tricked out with all the bells and whistles, the rims, the tinted windows, the LoJack, the works.”
“I would grab your phone and Venmo myself,” she said. (Venmo is a digital wallet that lets you pay and request money from your friends, so essentially, she’d steal my money then turn around and pay for the car with it). “Or, I would create a GoFundMe account.”
“A GoFundMe account, that’s a really good idea. Not so much the Venmo,” I said.
Then she added, “I would get my boyfriend to sell his sperm!”
See, now that’s creative thinking!
“Is there anything you wouldn’t do?” I asked.
“Not if it would get me $20K for a Ferrari!”
So, here’s the thing. In this example, even though Reena had only $100 to her name, she understood that the value of that Ferrari far superseded its $20K price tag. She knew that she could resell it and make a couple of hundred grand. Or she could keep it and have a bad-ass car for only $20K.
My point is, she was willing to go to any length to get the money — sell her boyfriend’s sperm, steal my phone and Venmo money to herself — just to get that car because the value was clear.
She also had confidence in the product. Ferrari has been around forever, everyone knows what a Ferrari is and what it’s worth, and she trusted that this was obviously a good deal.
Now, let’s swing back to prospect price objections. When your potential client turns down your pricing, what he or she is really saying to you is, “Hey, I’m not gonna buy your services because I’m not convinced you’re a Ferrari.”
So, here’s what I’ll leave you with, today. When you’re approaching a client, you need to clearly understand, be realistic, and be confident in the value you deliver.
If you’re sitting there, thinking, Well, I know I deliver value because a lot of people will see the advertisements that I create, and that has a good brand effect in the long term…
STOP … STOP … STOP!
If you have to tell yourself those lies and rationalize your price, you’re not worth what you charge. Period!
And the only way to overcome that is to acquire a new skill set. You need to be able to do something that other people can’t or aren’t willing to do. That’s what makes you worth the money.
Think about it, doctors and attorneys charge a ton of money because they have high-value skills. You can’t give yourself open heart surgery… well, you could try, I guess, and good luck with that!
But realistically, they can charge what they charge because there’s a limited number of people in the world who can do what they do.
If your skill set consists of the same services that everyone else has, delivered in the same way that everyone else does, you’re just another Joe Shmo in a world full of Joe Shmos. And you’re going to have a hard time charging higher prices and getting paid what you want to be paid.
So, here’s the deal. If you want to charge more — you’ve gotta be worth more. Be a Facebook Marketing Ferrari!
And while you’re at it, would you mind racing on over to the share button? Thanks!
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-by The Billy Gene Is Marketing Squad